Niko reports 25% hike in operational expenditure

Vol 6, PW 12 (14 Aug 02) News in Brief
     

Niko Resources and Gujarat Petroleum have spent 25% more than anticipated in operational expenditure at their oil and gasfield assets in Gujarat.

A source reveals Niko spent a total of Rs72.75cr ($15m) but had only budgeted Rs58.18cr ($12m) when it submitted projections for 2001-2002. Most of the extra money was spent to cover unforeseen development and production costs at its Hazira and Cambay assets.

Costs at Hazira gasfield went up because of two additional wells (No.19 and No.

20) and also due to extra money that had to be spent on well No.15 and No.

16 to replace lost equipment. Cambay development costs rose in response to purchase of 'fishing tools' but production costs fell by more than 40%.

Niko and GSPC also operate assets at Bhandut, Matar, Sabarmati and Surat in Gujarat. By contrast production costs at Bhandut and Matar came down.