New Zealand Oil & Gas (NZOG) has picked up a new interest in a production sharing contract (PSC) for onshore south Sumatra, Indonesia.
The Indonesian regulator said that a consortium including NZOG has won a permit to explore the Palmerah Baru block covering approximately 1,000 sq km. Formal award of the PSC is expected in late January. Under the PSC, the joint venture will be committed to an initial three-year exploration work program that will include both 2D and 3D seismic acquisition and one exploration well.
NZOG will have a 36% stake in the Palmerah Baru PSC. Its partners are operator Bukit Energy Palmerah Baru Pte. Ltd. (54%), and PT SNP Indonesia (10%).
Accoring to NZOG, the Palmerah Baru block is surrounded by oil and gas fields, including a very large field to the south and a recent discovery to the south-southeast. Because of developments in the area, the infrastructure necessary to transport product is nearby.