SKK Migas rejects Niko?s request for extension of exploration period

Upstream authority SKK Migas has rejected a request from Canadian oil and gas firm Niko Resources for an extension of the exploration period of its six oil and gas production sharing contracts (PSCs), Kontan reported on Tuesday.

?We have rejected the extension (request) because commitments have not been achieved,? said SKK Migas spokesman Zuldadi Rafli.

The six PSCs include Ganal Block, Bone Bay Block, West Sageri Block, Semai V Block, Seram Block, and South Matindok Block.

The paper said the government will offer the six blocks to other investors via tender.

As reported by this portal Niko filed for an extension of the exploration commitments of the six blocks in November of last year. The company was seeking to extend the exploration period to 10 years, from six years.

In October of last year, Niko entered into an agreement with LSE-listed Ophir Energy Plc for the later to acquire interests in seven PSCs in Indonesia, six of which to be operated by Ophir, for a cash consideration of US$31.3 million with further payments of up to $56 million contingent on exploration success.

Niko assets being acquired by Ophir included a 50 percent interest in West Papua IV PSC, Aru PSC (60%), North Makassar Strait PSC (30%), North Ganal PSC (18.5%), Obi PSC (42%), Kofiau PSC (100%), and Halmahera-Kofiau (80%). (*)