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NZ Oil and Gas takes 36% stake in Indonesia explorer

New Zealand Oil & Gas, the nation's largest oil explorer, has taken a 36% stake in a consortium to explore onshore south Sumatra, Indonesia.

The consortium won a permit to explore the Palmerah Baru 1000sq km block, the Wellington-based company said in a statement. The venture plans to undertake three years of exploration including 2D and 3D seismic acquisition and one exploration well, it says.

"The Palmerah Baru block is surrounded by oil and gas fields," chief executive Andrew Knight says. "These onshore Sumatra opportunities provide diversity to our core focus on exploration in New Zealand."

Shares in NZ Oil & Gas rose 2.5% to 82 cents and have declined 8.6% this year.

Other partners in the venture are Bukit Energy Palmerah Baru with a 54% stake and PT SNP Indonesia with 10%.

(BusinessDesk)