New Zealand Oil & Gas, Partners Awarded Unconventional Oil, Gas Block in Indonesia

New Zealand Oil & Gas (NZOG) and partners have been awarded the right to explore for unconventional oil and gas resources in Central Sumatra, Indonesia.

The consortium consists of Bukit Energy 33.75%, Pacific Oil & Gas 55% and NZOG 11.25%.

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.

It is one of the first PSCs for unconventional oil and gas resources issued in Indonesia, NZOG said in a statement.

The consortium will study the effective application of these technologies in onshore Sumatra over the next three years. The three-year exploration work commitment includes geological and geophysical studies in each year and drilling a vertical exploration well in year three, NZOG said.