Genesis Energy has put its 46 per cent stake in the Kupe oil and gas field up for review.
The company, which is 51 per cent owned by the New Zealand Government, said the asset had attractive cash flow and a strong growth outlook.
Genesis said the joint venture is now considering further development, including drilling an additional well and further exploration, which changes the risk and opportunity profile of the asset.
"Accordingly, the board now considers it an appropriate time to review Genesis' ongoing ownership of its 46 per cent interest in Kupe," the company said.
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The review will consider a number of areas including the returns and risks of a potential drilling programme, the optimal capital structure for the company and whether there are more strategically aligned capital investment opportunities.
The board will assess whether continued ownership or a sale is in the best interest of shareholders.
The company said it did not expect the outcome of the strategic review to impact its ability to maintain the current level of dividends or its long-term contractual rights to all gas associated with the Kupe asset.
An announcement regarding the outcome of the review is being targeted for mid 2021.
RBC Capital Markets have been appointed to assist with the review.
Beach Energy and NZOG own the rest of the field.