Niko suffers loss of $700m in deep sea explorations

By Febry Silaban

Canadian oil and gas firm Niko Resources Ltd has suffered financial losses of US$700 million due to its failure in finding new oil and gas discoveries in its deep sea exploration blocks.

?We have spent approximately $700 million after drilling six wells in our deep sea blocks during the period of 2012 and 2013, but so far there has been no new commercial reserve found,? Public Relation Manager at Niko Resources Zizy Shobirin told Petromindo.com.

She acknowledged that Niko has decided to suspend drilling program in Indonesia this year.

?Nevertheless, it has not been satisfied yet. This year we just want to re-evaluate our drilling program in Indonesia,? she said, assuring that the company will not pull out from Indonesia, but is considering farming out its ownership in Indonesian blocks.

Niko has drilled six exploration wells at five deep water blocks in Indonesia since 2012, including the Ajek-1 and Elit-1 wells in the Kofiau block offshore Papua, the Cikar-1 well in West Papua IV block offshore West Papua, the Panandan-1 well in the North Makassar Strait block offshore Makassar Strait, the Jayarani-1 well in the Lhokseumawe block offshore Aceh province, and the Elang-1 well in the Cendrawasih block offshore Papua.

Editing by Reiner Simanjuntak