Niko, Hess Corp subsidiary set up JV to develop Kofiau PSC

Canadian-based oil and gas company Niko Resources Ltd said that it has reached an agreement with Hess Corporation in which a Hess subsidiary company will become a joint venture participant in the Kofiau Production Sharing Contract (PSC), located in offshore West Papua, Indonesia.

As a result of the farm-out, Niko will operate with a 57.5 percent interest and Hess will earn a 42.5 percent working interest in the Kofiau PSC. The transfer of interest is pending approval by the government of Indonesia.

Niko has acquired a total of approximately 2,266 km2 of 3D seismic data and 1,050 km of 2D seismic data on the block. Niko will drill several wells on the Kofiau PSC as part of an extensive Indonesian deepwater drilling campaign set to commence in 2012. (romel)