Niko Gives Up D4 Block in India

Canadian oil and gas explorer Niko Resources said it has relinquished its stake in the D4 block due to a geological assessment and risk of the trapping mechanism and current commercial environment in India.

Niko has a 15 percent interest in the D4 Block, which is located on the Manahndi basin on the east coast. Other partners in the block are Reliance Industries and BP. The block lies north of Reliance’s main D6 block in the neighbouring Krishna-Godavari basin, where gas output has declined sharply over the last year. It is spread over 17,000 square kilometres, the block is in the exploration phase.

The company was required to conduct seismic work and drill three exploration wells until June 2013 on the block.

Reports suggest that initial estimates of the block had pointed towards gas reserves to be twice as large as the D6 block in the Krishna-Godavari basin.