New Zealand Oil & Gas Ltd. has picked up a new interest in a Production Sharing Contract (PSC) in onshore south Sumatra, Indonesia. The Indonesian regulator has announced that a consortium including New Zealand Oil & Gas has won a permit to explore the Palmerah Baru block covering approximately 386 square miles (1,000 square kilometers). Formal award of the production sharing contract is expected in late January.
Under the PSC, the joint venture will be committed to an initial three year exploration work program to include both 2D and 3D seismic acquisition and one exploration well. New Zealand Oil & Gas will have a 36 percent stake in the Palmerah Baru PSC. Its partners are Bukit Energy Palmerah Baru Pte Ltd (54 percent, Operator), and PT SNP Indonesia (10 percent).