Niko signs deals to acquire Semai V, Kofiau PSCs from Hess Corp

By Ruli Setiawan

Canadian firm Niko Resources said it has signed a definitive agreement with US-based Hess Corporation for certain consideration in exchange for assuming a 100 percent interest in the Semai V PSC, located offshore Papua province in eastern Indonesia.

The company said in a statement obtained Friday that two wells have been previously drilled in the block, Andalan 1 and 2, with one future commitment well yet to be drilled. Drilling results from these wells indicate hydrocarbon potential remaining on the block.

Niko said that it has also signed an agreement to acquire Hess?s interest in the Kofiau PSC, also located offshore Papua province, for nominal consideration, increasing the company?s interest in the block to 100 percent.

The closings of these transactions are subject to the approval of the government of Indonesia, the statement said.

Hess has reportedly been trying to sell its oil and gas assets in Indonesia including 100 percent interest in the Semai V PSC and 42.5 percent ownership in Kofiau PSC as part of the company?s overall global divestment strategy to focus on its US operation. The company, however, is not immediately available for comments regarding the transaction.

Editing by Reiner Simanjuntak