Niko Resources, an India and South East Asia focused oil and gas exploration and production company, has decided to relinquish its interest in the D4 (MN-DWN-2003/1) block, offshore India.
The most current geological assessment related to the size and risk of the trapping mechanism and current commercial environment in India, is the reason behind Niko’s decision to relinquish its stake in the block.
Niko owns 15% working interest in the block. The D4 block, located in the Orissa basin, is operated by Reliance Industries (85%)
Similarly, Reliance recently advised Hardy Oil and Gas plc to relinquish its 10% interest in the D9 block explaining that “the block’s hydrocarbon potential is low and further exploration or appraisal activity is unwarranted”
India’s energy requirements are largely based on fossil fuels and with 1.2 billion inhabitants domestic energy resources are critical to India’s continued economic growth. India has been trying to reduce its dependence on imported oil and LNG by expanding domestic exploration and production.
Since 1997 the government has implemented the New Exploration Licensing Policy (NELP) that has provided a framework for companies to invest in India’s oil and gas potential.
[mappress] Offshore Energy Today Staff, May 23, 2012