imported>Worldbruce: clean up, typo(s) fixed: long term → long-term

2020-11-26T22:11:29Z

clean up, typo(s) fixed: long term → long-term

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{{Infobox company
| logo = Niko Resources Logo.svg
| logo_size = 260px
| type = [[Public company|Public]]
| traded_as = {{TSX was|NKO}}
| industry = [[Petroleum industry|Petroleum]]
| genre =
| foundation = 1987
| founder =
| location_city = [[Calgary, Alberta]]
| location_country = [[Canada]]
| key_people = {{Unbulleted list | Ed Sampson (Chair, Pres., [[Chief executive officer|CEO]]) | Will Hornaday ([[Chief operating officer|COO]], Dir) | J. Cummings (Dir) | W. DeBoni (Dir)}}
| products = [[Oil]], [[Natural Gas]]
| revenue = [[United States Dollar|US$]]194.464 mil [[year to date|Ytd]] June 2011 {{decrease}}14.4%<ref>{{cite web|url=http://www.nikoresources.com/upload/media_element/58/01/fiscal-year-end-report---march-2011.pdf|title=Summary of Quarterly Results: page 21|year=2011}}</ref><ref>{{cite web|url=http://www.nikoresources.com/upload/news_release/148/02/q1.pdf|title=Niko Resources 2011 First Quarter Results|year=2011}}</ref><ref name=tenreport>{{cite web|url=http://www.nikoresources.com/upload/media_element/36/01/fiscal-year-end-report---march-2010.pdf|title=Summary of Quarterly Results: page 24|year=2010}}</ref>
| net_income = {{decrease}}[[United States Dollar|US$]](54.334) mil [[year to date|Ytd]] June 2011 (1h10: $78.23M)
| operating_income =
| assets = [[United States Dollar|$]]1,830.11 mil June 2011{{decrease}}7.3% qoq
| equity = [[United States Dollar|$]]1,127.47 mil June 2011{{increase}}2.9% qoq
| divisions = Niko Resources Cyprus Ltd Niko Resources Bangladesh Ltd Niko Resources Cayman Ltd Niko Resources Trinidad & Tobago Voyager Energy
| num_employees = 213
| num_employees_year = 2011
| website = {{URL|nikoresources.com}}
}}
'''Niko Resources''' is an India- and [[South East Asia]]-focused oil and gas exploration and production company that shares ownership of many exploration and development properties with Komodo Energy and Reliance Industries. Though it holds exploration rights to {{convert|37000000|acres|km2}} of land in 7 countries production currently (2011) only takes place in India and Bangladesh. Major acquisitions include a $310 million November 18, 2009 purchase of Black Gold Energy (a move that made it a major player in deepwater exploration in Indonesia, the deal was completed in December 2009) followed by the 2010 $37.6 million acquisition of Voyager Energy which expanded its presence in Trinidad (that deal was completed in March 2010).<ref>{{cite web|url=http://www.epmag.com/Drilling/drillingnews/Headlines2009/item48884.php|title=Niko Resources to acquire Black Gold Energy LLC for $310 million|date=2009-11-18}}</ref><ref>{{cite news |url=http://ca.news.finance.yahoo.com/s/08022010/2/biz-finance-niko-resources-buy-voyager-energy-37-6-million.html|title=Niko Resources to buy Voyager Energy in $37.6 million stock transaction|date=2010-02-08}}</ref>

Most of the company's revenue comes from India (85.92% in fiscal 2011 up from 81.6% in 2010/87.53% in 1Hlf10), revenue from India rose 106% in the 12 months ended March 2011 compared to only 3.9% for Bangladesh.<ref name="2011report" />

The company is investing heavily in Trinidad where in June 2011 it paid $78.1 million for offshore block 5c and is initiating exploration of another block (block 2AB). Though 58% of Niko's net exploration land position is in Indonesia (16.7M acres or 10X more than India) exploration expenditure in India has increased from 1.4X higher than Indonesia in 2010 to 2.6X higher ($50M vs $19M), and is forecast to increase to 12X higher in 2012 due to drilling the D4 and D6 blocks. In terms of gross land holdings about a quarter of all land is in India (35,187 km2) <ref name="2011report" /> Between 2001 and 2006 the market value of the company grew elevenfold.<ref name="pbs" />

==History==
Niko Resources started out as an oil and gas company operating mainly in and around the [[Western Canadian Basin]] (Alberta and Saskatchewan); it wasn't until 1993 that the company showed interest in operating abroad. Its first venture into India involved the Hazira gas field (located SW of [[Surat]]) which was awarded to it and the [[Gujarat State Petroleum Corporation]] by the government of India on September 23, 1994.<ref>{{cite web|url=http://www.ifc.org/ifcext/spiwebsite1.nsf/projects/98E07B1A2893E890852576C10080CB81|title=International Finance Corporation World Bank Group|access-date=2010-11-20}}</ref> First production abroad began July 1995 at Hazira. The Hazira acquisition was the first in a string of large investments in India made by Niko; between 1994 and 2006 all major company moves were made in India.

In 2002 a natural gas exploration discovery it took part in (partnered with [[Reliance Industries]]) turned out to be India's biggest and one of the world's largest for that year (the discovery was made in the Krishna-Godavari basin).<ref>{{cite news|url=http://in.reuters.com/article/idINDEL31745220071106|title=India's Reliance finds more gas off east coast|date=2007-11-06 | work=Reuters}}</ref><ref>{{cite web|url=http://www.idec2010.com/advisory.html|title=India Drilling & Exploration Conference 2010|access-date=2010-11-20}}</ref><ref>{{cite web|url=http://www.capitalmarket.com/capitalmarket/CMEdit/SFArtDis.asp?SFSNO=431&SFESNO=25|title=What the new gas find by Reliance Industries means|date=2002-12-11}}</ref>

In 2003 it expanded operations outside of India''',''' beginning with Bangladesh.<ref>{{Cite web|url=https://www.pbs.org/frontlineworld/stories/bribe/2009/08/bangladesh-a-dirty-deal-back-fires.html|title=Bangladesh: The Blowback of Corruption|website=www.pbs.org|access-date=2016-05-18}}</ref> In 2008 started operations in Pakistan (March, awarded four [http://www.wikinvest.com/wiki/Oil_exploration_block blocks]), Madagascar (October, Grand Prix Block), Indonesia (November, awarded 4 blocks). Then in 2009 it purchased a 26% interest in a block in Trinidad, the block is held by a consortium of companies each with interests in it ranging from 29.25% ([[Centrica]]) to 35% ([[Petrotrin]]).<ref>{{cite web|url=http://www.offshore-mag.com/index/article-display/3252709015/articles/offshore/company-news/us-gulf-of-mexico/niko-to_operate_2ab.html|title=Niko to operate 2AB block offshore Trinidad|date=2009-07-09}}</ref>
When it acquired Voyager Energy, operations in Trinidad were expanded (Voyager held four blocks in the country including a 9.75% stake in the 2AB block, Niko's first (and only) interest in the region).

In 2013, a panel of the International Centre for Settlement of Investment Disputes held that it had jurisdiction to hear two claims by Niko Resources (Bangladesh) Ltd. against entities owned by the Government of Bangladesh relating to two 2005 gas well blowouts in Bangladesh and to contracts for delivery of natural gas.<ref>{{cite web|url=http://sullivanlaw.net/arbitration-tribunal-finds-jurisdiction-over-bangladesh-investor-disputes/|title=Shawn N. Sullivan, Arbitration Panel Finds Jurisdiction Over Bangladesh-Investor Disputes|access-date=2013-08-27}}</ref>

In March 2019 Niko Resources was delisted from the Toronto Stock Exchange.<ref>{{cite web|url=https://www.bnnbloomberg.ca/how-niko-resources-fell-from-tsx-high-flier-to-delisting-1.1228241|title=How Niko Resources fell from TSX high-flier to delisting|access-date=2019-03-15}}</ref>

==Operations==
Exploration capital expenditure in the first half of 2010 ($96 million) was spent mostly in India (34.4%), Indonesia (28.1%) and Madagascar (22.9%).<ref name=secondtenreport>{{cite web|url=http://www.nikoresources.com/upload/news_release/78/01/2nd-quarter-report-november-2010.pdf|title=Niko Resources 2010 Second Quarter Report|date=2010-11-03}}</ref> In India ownership of all major properties is shared with [[Reliance Industries]]. The Cauvery block & NS (North Surat, NELP 2) block are 100% owned by Niko. As of March 2011 total 2P reserves are about 200 million barrels of oil equivalent (1.2 trillion MMcfe) 64% of which is natural gas; that represents a 24% overall decline since 2010 (proved reserves saw the biggest decline down 29%). 98.6% of proved reserves is natural gas.<ref>{{cite web|url=http://www.nikoresources.com/investor-centre/key-indicators.html#reserves|title=Niko Resources Key Indicators|access-date=October 5, 2011}}</ref> Less than 2% of production/revenue comes from Canadian and Bangladeshi condensate. Currently (June 2011) only 2 of the 7 countries Niko has major operations in contribute revenue; The other five countries hold 41.8% of total assets by value.<ref name=tenreport/> Though expansion outside of India is significant the country remains the most important source of cash flow and production with revenue per Mcfe of oil/gas production nearly twice that of Bangladesh. Production and earnings are forecast to fall significantly in 2012 due to lower gas production at India's D6, D4 and 9 blocks and new terminal maintenance costs from the D6 block.

'''INDIA'''
* '''Hazira''': It is a matured gas field. The field complies with latest international safety standards like ISO & OHSAS. The field has recently completed cumulative 3 million safe working hours without LTI. The 50 km2 block (onshore and offshore) is 33% owned by Niko and contributes approximately 3% of total revenue (as of June 2011).
* '''D6 block''' in India (10% interest, production began in September 2008) - Although a major natural gas producer the company has recently been negatively affected by 5 year fixed price contracts.<ref>{{cite web|url=http://www.intellasia.net/news/articles/resources/111308616.shtml|title=Niko Resources sees drop in income, jump in funds|date=2010-11-16}}</ref> The D6 block was the largest natural gas discovery in company history, currently it also includes a gas processing plant (the block also includes the MA oil fields). Mining licenses expire in 2028. Contributed 85% of revenue in the quarter ended June 2011. Natural gas produced is purchased under long-term contracts and sold on the spot market.
* '''D4 Block (15% interest, controlled by Reliance Industries 85%)''' - located in the Orissa Basin it covers over {{convert|4000000|acres|km2}} of offshore land. Reserves at D4 are estimated to be double those at D6.<ref>{{cite web|url=http://money.oneindia.in/news/2010/10/08/d4-block-reserves-double-d6.html|title=RIL's D4 block reserves double those of D6|date=2010-10-08}}</ref>
* '''NEC25 (10% interest, 90% by Reliance Industries)''' - covers over {{convert|3000000|acres|km2}} offshore in the [[Bay of Bengal]].

'''TRINIDAD'''
* '''Trinidad''' (Trinidad and Tobago is the largest exporter of Liquid Natural Gas to the USA)<ref>{{cite web|url=http://www.eia.doe.gov/cabs/Caribbean/LNG.html|title=Caribbean Energy Data, Statistics and Analysis US Energy Information Administration|access-date=2010-11-20}}</ref> - five of the nine oil fields Niko owns interest in are controlling interests up from just two (Guayaguayare shallow (65%) and deep horizon (80%)) in 2009. In June 2011 Niko acquired a 25% interest in oil block 5C (covers 325 km2) from Canadian company Sonde for $75.5 million cash making Trinidad a core area for the company.<ref>{{cite web|url=http://www.energy.tt/index.php?categoryid=51&p2001_articleid=1081|title=The Energy Chamber of Trinidad and Tobago|date=January 4, 2011}}</ref> In Trinidad exploration licenses are issued as production sharing contracts (PSC's).<ref>{{cite web|url=http://www.guardian.co.tt/business-guardian/2011/04/28/niko-optimistic-about-oil-gas-discovery|title=Niko optimistic about oil, gas discovery|date=April 28, 2011}}</ref>

'''KURDISTAN'''
*''' Kurdistan''' - Niko has few interests in the Kurdistan region of northern Iraq. Mid 2010, drilling activities were going on & potential test is yet to be done.

'''MADAGASCAR'''
* '''Madagascar''' - Few interests in Morondava basin.

===Production===
Averaged over the 2011 fiscal year (ended March 31) production was 294,765 Mcf (49,127 boe)/d due entirely to new production from the D6 block (oil increased 97% to 2784 bbls/d (9.4% of total), gas increased 22.3% to 278,060 Mcf (46,343 boe)/d (94.3% of total).<ref name=2011report>{{cite web|url=http://www.nikoresources.com/upload/news_release/146/01/fiscal-year-end-report---march-2011.pdf|title=Niko Resources 2011 Annual Report|year=2011}}</ref> In the first half of 2010 daily production averaged about 50,751 boe/d (93.9% natural gas, based on conversion ratio of 6000 cubic feet:1 boe) up 61.67% when compared to the first half of 2009 (31,393 boe/d, 96.1% natural gas).<ref name=secondtenreport/> Contribution from the D6 block in India is largely the reason for the higher numbers (the D6 block also helped revenue because of higher realized prices there).

==Criticism==
Between 2003 and 2006 Niko was involved in a corruption scandal involving the acquisition of the $750 million Tengratila and [[Feni District|Feni]] gas fields in Bangladesh. Additionally, the company accidentally caused an explosion and initially refused to pay for damages, although eventually did compensate the 620 affected families. During this time, they gave the minister responsible for overseeing compensation claims a Luxury SUV. Investigation into corruption allegations were made by the [[Royal Canadian Mounted Police]] in January 2009.<ref name=pbs>{{cite web|url=https://www.pbs.org/frontlineworld/stories/bribe/2009/08/bangladesh-a-dirty-deal-back-fires.html|title=Bangladesh: The Blowback of Corruption Canadian company leaves environmental scars, trail of allegations|date=2009-08-20}}</ref> Niko hired consultancy firm Stratum Developments Ltd which distributed bribes among Bangladesh government officials.<ref>{{Cite news|url=http://www.thedailystar.net/frontpage/niko-signed-bribery-deals-1387600|title=NIKO signed bribery deals|date=2017-04-07|work=The Daily Star|access-date=2017-04-07|language=en}}</ref>

==See also==
*[[SeaSeep]]

==References==
{{Reflist|30em}}

[[Category:Oil companies of Canada]]
[[Category:Natural gas companies of Canada]]
[[Category:Companies based in Calgary]]
[[Category:Energy companies established in 1987]]
[[Category:Non-renewable resource companies established in 1987]]
[[Category:Companies formerly listed on the Toronto Stock Exchange]]
[[Category:1987 establishments in Alberta]]
[[Category:Canadian companies established in 1987]]

Niko Resources - Revision history

imported>Worldbruce: clean up, typo(s) fixed: long term → long-term