Indonesia Inks 20-year PSC for Corridor Block

Indonesia's government signed on Monday a production sharing contract with units of ConocoPhillips (COP), PT Pertamina and Repsol SA for the Corridor natural gas blocks, Energy and Mineral Resources Minister Arifin Tasrif told reporters.

The contract will extend by 20 years the current contract with the same companies that will expire in late 2023.

Under the new contract, the companies will have 53.5% of the gas produced from the block and 48.5% of the oil.

"The government considers the existing contractors to have the technical and financial capabilities (to operate Corridor)," Tasrif said and hopes production from Corridor would be expanded.

The Corridor block in Jan-Sept this year delivered 833 million standard cubic feet of gas per day (mmscfd), according to data from upstream oil and gas regulator SKK Migas.

The Corridor block, in south Sumatra, is one of Indonesia's largest, representing 12% of national production.

(Reporting by Wilda Asmarini Writing by Fransiska Nangoy)