NEW ZEALAND Oil & Gas (NZOG) is a partner group in a new onshore unconventional oil and gas project in Central Sumatra, Indonesia.
The MNK Kisaran consortium is led by Indonesia-focused Pacific Oil & Gas, which holds a 55 per cent stake in the project, followed by Bukit Energy, with 33.75%, with NZOG holding the remaining 11.25%.
The consortium will study the effective application of these technologies in onshore Sumatra over the next three years, NZOG said.
“The first firm, three-year exploration work commitment includes geological and geophysical studies in each year and drilling a vertical exploration well in year three,” it said.
Formally initiated in line with the interest, the MNK Kisaran production sharing contract is one of the first PSCs for unconventional oil and gas resources issued in Indonesia.
It is the first time NZOG has had exposure to prospective oil and gas resources that qualify for concessional terms from the Indonesian government.
These resources could not be developed commercially without those concessions, NZOG said.
The MNK Kisaran production sharing contract covers a substantial sub-basin in the same area as the conventional Kisaran production sharing contract where the consortium partners last year successfully drilled for oil and gas.
A plan of development for that discovery is currently being prepared, and is expected later this year.