Niko farms out Maluku blocks to Repsol

Calgary-based oil, gas firm Niko Resources Ltd. announced Friday that it has reached a farm-out agreement with Spain oil firm Repsol Exploration SA in which Repsol, through its subsidiaries, will become a joint venture participant in both the East Bula and Seram Production Sharing Contracts (PSC) in offshore Seram island, Maluku province.

Under the deal, Niko as operator will hold 55% working interest and Repsol will hold 45% working interest on each PSC. The transfer of interest has been approved by the Government in Indonesia, the company said.

The Seram PSC was signed by Niko in November 2008 while the adjacent East Bula PSC was signed by Niko in November 2009. Niko as the operator of both blocks has completed a 4,760 km 2D seismic survey and a 200 square km 3D seismic survey, it said.

Repsol and Niko are also joint venture partners in three recently awarded blocks; Cendrawasih Bay II, III, and IV. These three blocks were signed under a PSC on May 18th, 2010. Niko as the operator of Cendrawasih Bay III and IV has already completed a 5,240 km 2D seismic survey. (denny)