Niko Resources set to hike gas production from Hazira

Vol 4, PW 5 (12 Apr 00) Exploration & Production
     

Niko Resources of Canada is planning to double production from its Hazira gasfield in Gujarat within the next six months.

Calgary-based Niko operates Hazira in an alliance with Gujarat State Petroleum Corporation (GSPC). The field isconsidered the 'Jewel in the Crown' of the company's asset portfolio in India and produces on average 620,000 cubic metres a day (cm/d) from five wells.

It is understood that "on a good day" production can go as high as 700,000 cm/d. In February this year Niko announced encouraging results from eight development wells.

These eight wells will now be "tied in" to bring production up to an average 1.4m cm/d by September this year. It is understood from sources in Mumbai that Niko has approached financial institutions to underwrite the cost of the Hazira development programme - tentatively put at $50m.

Conservative estimates put recoverable reserves at Hazira at around 28bn cubic metres (1 trillion cubic feet). Most industry experts put the figure much higher.

Niko sells 60% of its Hazira gas to Gujarat Gas - a British Gas-owned transmission company with its headquarters in Ahmedabad. The balance 40% goes to Essar Steel's plant at Hazira.

Niko is in protracted negotiations with the Indian oil ministry to relinquish its stake in two fields Sabarmati and Matar. Niko's assets in India Field Estimated Reserves Recoverable Reserves Hazira 28.4bn cm 5.2bn cm Bhandut 12.7m cm 8.89m cm Cambay 545m cm 381m cm Sabarmati 86.1m cm 60.27m cm Matar 24.1m cm 16.87m cm