Date:18/02/2006 URL: http://www.thehindubusinessline.com/2006/02/18/stories/2006021803220200.htm

Back Niko Resources mum on IOC offer

Our Bureau

Kolkata , Feb. 17

NIKO Resources Ltd is yet to respond to IOC's offer for acquisition of its Indian assets. Though Niko authorities preferred not to respond, sources in Indian Oil said that the offer was still valid.

According to sources, the Canadian exploration and production company is looking for buyers for its exploration-production interests in India. Niko has interests in a number of exploration-production assets in India and Bangladesh.

"We are still awaiting Niko's response to our expression of interest in taking over its E&P assets in India," an IOC official said, adding that based on Niko's response IOC would carry out the due diligence and place a final offer.

Niko did not respond to queries from Business Line. An e-mail to Mr Richard Alexander, Vice-President Finance, Niko Resources Ltd, on whether IOC's offer was still valid and Indian Oil was the sole bidder of the assets in question went unanswered.

Niko has a 33 per cent stake in the Hazira offshore oil and gas field. Though production is yet to reach its peak, the field produces more than 53 million cubic feet of gas per day with a potential to produce up to 6,000 barrels of associated oil per day.

The company owns a complete stake in the Surat block, which is now under development and is a minority partner in NEC-25 offshore blocks. Other blocks held by the company are still in an exploratory stage.

Also, the Canadian company is a 10 per cent stakeholder with Reliance (90 per cent) in D-6 block in the Krishna-Godavari basin. According to a recent Niko release, Reliance has indicated presence of substantial gas reserves in the block.