Indonesia and Exxon Mobil have made progress in talks over the Cepu oil block on Java island, the government's chief negotiator said, adding that he thought the main issues had been resolved.

State oil firm Pertamina decided last year not to extend a contract for Exxon Mobil after it expires in 2010 but the government has ordered officials to work out a deal to boost flagging oil production.
The main sticking points have been over how much Exxon Mobil has spent on the project, and the production split.
'The talks (with Exxon Mobil) continue. There is progress,' said Martiono Hadianto, the chief negotiator who is also president of the board of commissioners of Pertamina.
Asked whether the main issues have been solved, Hadianto said: 'I think they are already.'
Asked whether production split and participating interest have been agreed he said: 'That is already (done).' He did not elaborate.
Exxon Mobil spokeswoman Deva Rachman said separately: 'Yes, we are making progress' and that the talks were continuing. She gave no other details.
Indonesian chief economic minister Aburizal Bakrie has said the government wants Exxon Mobil to get a lower production share in Cepu block than the standard 15 per cent.
The standard production sharing contract in Indonesia is 85 per cent for the government and 15 per cent for the contractor.
A government official close to the negotiations, who declined to be named, said Pertamina and Exxon Mobil may get 45 per cent stakes each in Cepu while the regional government where the field is located gets 10 percent.
The differences over the deal have delayed development of the field in East Java, which the world's largest energy company said could hold more than 250 million barrels of oil.