The company said it noted an announcement from Andalas Energy & Power about the latter's decision to acquire a 30% stake in the Tuba Obi East (TOE) technical assistance contract in the South Sumatran basin about 19 miles north-west of Jambi city in Jambi province, Sumatra.
Andalas believes any future gas production from the concession may support either gas export, with the project being close to a major export route, or gas-to-power, being in an area facing energy shortages.
Northcote has the right to participate in any project alongside Andalas at a level equal to 12.5% of Andalas’s participation until the end of April 2020.
If Andalas tells Northcote it plans to press ahead with the project, Northcote has 20 days from the date of the notification to decide whether to take part.
Northcote managing director Randall J. Connally said: "We are very excited about the progress Andalas is making in Indonesia and its focus on natural gas projects which given the strong domestic market provide excellent potential for revenue diversification.
"Pursuant to our agreement with Andalas, Northcote will have 20 business days from the date we are notified of details regarding the project to make a decision as to our participation. Therefore we will notify the market in due course."