Bahlil rejects report of ExxonMobil 50:50 split proposal at Cepu Block
Wednesday, March 4 2026 - 10:56 AM WIB
By Calvin Purba
Energy and Mineral Resources Minister Bahlil Lahadalia pushed back on reports that ExxonMobil had proposed revising the production sharing contract (PSC) at the Cepu Block to a 50:50 split, saying he was unaware of any such request.
“Where did you hear about 50:50? I don’t know about that. I’m the Minister of Energy and Mineral Resources and I’ve never heard of a 50:50 split,” Bahlil told reporters on Tuesday.
Under the existing scheme, 85% of oil output goes to the state and 15% to contractors.
Bahlil did not specify what revenue-sharing formula the government is seeking but said state revenue must take priority.
“We are asking that the state’s rights or revenue be given greater priority. I am currently calculating which option would be more beneficial for the country,” he said. “Of course it has to be win-win, but we must maximise our gains. If the IRR is above 20%, how can they ask for a bigger share? That doesn’t make sense.”
Read also: Exxon seeks 50:50 profit split at Cepu Block, ministry pushes back
Earlier, Oil and Gas Director General Laode Sulaeman said Exxon had proposed a 50:50 split as part of discussions on revising the Cepu PSC, but described the figure as too high. Talks are ongoing and no final agreement has been reached, he said.
Last month, Bahlil said Exxon’s operating permit at Cepu would be extended to 2055, with the U.S. energy major planning to invest about $10 billion during the extension period. However, he noted that several issues, including cost recovery and production-sharing terms, still need to be finalised.
Current oil lifting at the block stands at around 170,000 to 185,000 barrels per day.
Oil was discovered at Cepu in 2001 and the cooperation contract was signed in 2005. ExxonMobil Cepu Limited holds a 45% participating interest, alongside Pertamina EP Cepu with 45% and the Cepu Block Cooperation Agency (BKS) with 10%.
Editing by Reiner Simanjuntak