Niko obtains govt approval for sale of North Ganal PSC

By Romel S. Gurky

Canadian oil and gas firm Niko Resources Ltd said Thursday it had obtained last month approval from the Indonesian government for the sale of its interest in the North Ganal PSC, in East Kalimantan, for which net cash consideration of US$4 million is expected to be received.

Niko is selling the asset to LSE-listed Ophir Energy Ltd, which in April of this year completed the acquisition of four other Noko Resources? oil and gas assets in Indonesia including West Papua IV, Aru, Kofiau and Halmahera-Kofiau PSCs in eastern Indonesia.

Niko holds a 31 percent working interest of the North Ganal PSC, ENI North Ganal (operator) 20 percent, North Ganal Energy Ltd 20 percent, Statoil Indonesia North Ganal 19 percent and GDF Suez New Project Indonesia B.V 10 percent.

Ophir is also in the process of acquiring another Niko asset, North Makassar Strait PSC.

?Closings of the transaction for the sale of the company's interest in one additional Indonesian PSC (North Makassar Strait in Offshore Makassar Strait) is subject to the satisfaction or waiver of the remaining conditions precedent,? Niko said in a statement.

Niko said it is also contesting the Land and Building Tax (LBT) assessments related to certain Indonesian PSCs and has indemnified Ophir for any potential LBT obligations related to the subsidiaries that own interests in the Aru and North Ganal PSCs.

Editing by Reiner Simanjuntak