CALGARY, Canada -- Niko Resources Ltd. has signed four offshore production sharing agreements (PSAs) with the president of the Islamic Republic of Pakistan and Government Holdings (PVT) Ltd., through the Secretariat of the Ministry of Petroleum and Natural Resources.
The initial term of the exploration work is for five years. In each block a minimum of 200 sq km (77 sq mi) of 3D seismic is to be acquired in the first phase of the initial term. The minimum work program for each block for the entire five-year initial term is 820 work units.
Work will begin immediately to establish an operating presence and organize the seismic survey work within the first year of the contract.
Niko will have a 100% participating interest in the Arabian Sea blocks near the city of Karachi and are designated as block No. 2466-7 (OFFSHORE INDUS NORTH); block No. 2466-6 (OFFSHORE INDUS Z); block No. 2465-3 (OFFSHORE INDUS X); and block No. 2465-4 (OFFSHORE INDUS Y).
The blocks are situated in the Indus Fan system, the second largest submarine fan in the world and cover an area of approximately 10,000 sq km (3,861 sq mi), Niko says. Water depths range from transition zones (onshore to offshore) to deep water.