Niko Resources does not consider pullout, only farmout
Monday, September 16 2013 - 05:51 AM WIB
Canadian firm Niko Resources has assured that it will not pull out from Indonesia but is considering farming out its ownership in Indonesian blocks, a senior official at upstream authority SKK Migas said on Monday.
The firm has drilled six wells so far but has yet to get a positive result.
?The firm has drilled six wells. Nevertheless, it has not been satisfied yet. It wants to reevaluate its drilling program in Indonesia,? Indro Purwaman, SKK Migas? exploration division head, told Petromindo.com
?I think one of the results of the reevaluation is sharing risk,? he said.
Previously, Niko announced that it has decided to suspend drilling program in Indonesia this year.
?Pending the company?s re-evaluation of its go-forward exploration capital spending priorities, the company has decided to temporarily suspend its drilling program in Indonesia,? the firm said in a statement on Aug. 31, 2013.
Indro called on other contractors to use the rig (which is identified as the Ocean Monarch rig by Niko identified in its statement) that has been left idle due to Niko?s decision to suspend its drilling program.
?It is now in Indonesia and the fee is cheap enough,? Indro said.
Editing by Johannes Simbolon