Govt approves transfer of Semai V PSC to Niko

By Romel S. Gurky

Canadian firm Niko Resources Ltd. announced Thursday that the Government of Indonesia has approved the transfer of a 100 percent interest in the Semai V PSC from US-based Hess Corporation to the company.

Niko signed in August 2013 a definitive agreement with Hess to acquire 100 percent interest in the Semai V PSC, which is located offshore Papua Province. The company also signed an agreement for the acquisition of 42.5 percent interest in Kofiau PSC, also located offshore Papua, belonging to Hess, which has been engaged in global divestment strategy is it focusses on US operation. The two agreements are subject to the approval of the Indonesian government.

Niko said in August of last year that two wells had been previously drilled in the Semai V block, Andalan 1 and 2, with one future commitment well yet to be drilled. Drilling results from these wells indicated hydrocarbon potential remaining on the block.

Editing by Reiner Simanjuntak