BP plc’s production contract in Indonesia’s most prolific gas fields, collectively called the Tangguh block, has been extended to 2050, paving the way for further development as the firm works to boost its LNG production from the region.

A 20-year extension for BP and its partners in the Tangguh was approved by the government of Indonesia, the firm disclosed Friday. Around 60% of the reserves in the block supply Indonesia’s domestic industry, but BP also markets volumes internationally through the Tangguh liquefied natural gas terminal.

BP has been working to expand the capacity of Tangguh LNG with a third train expected to come online sometime early next year. The company estimates the new train could increase LNG capacity at the 7.6 million metric tons/year facility by...