Reports suggest that Petrobras, which is one of the worlds largest oil Companies, has been granted the rights of exploration for oil and gas on the east coast of the North Island.

Furnishing the details, Energy Minister Gerry Brownlee claimed that the five-year permit would cover more than 12,000 square kilometers, and it would be the first in the Raukumara Basin area.

According to Brownlee, the chance of attracting Petrobras is a major achievement since the Company has annual revenues of more than $118 billion US dollars.

Terming the development as an exciting step into an unexplored area, it is believed that the Energy Minister Gerry Brownlee is extremely optimistic of the deal.

Following the explosion of the Deepwater Horizon rig in the Gulf, Brownlee assured that the Government and Petrobras were aware of the environmental concerns.

He further said that, he was extremely comfortable with the Company's 'sensitive approach' to its work.