Could you please provide us with a brief overview of Niko’s history in Trinidad and Tobago?

Niko entered the Trinidadian market through Block 2AB, which was originally bid on by Centrica. Later, the company acquired a smaller independent company called Voyager in 2010. Niko signed PSCs for a few more blocks and purchased Block 5C from Sonde Resources in 2011. Niko’s alliance with Voyager allowed them to participate in any of Voyager’s projects in the Caribbean. When Voyager faced financial difficulties in 2008, Niko agreed to purchase the company. Niko currently has two large operating areas in Indonesia and Trinidad, and their strategy includes building relationships with companies like Centrica and RWE Dea to create a strong infrastructure in Trinidad.

Can you provide us with the most recent update of your operations here; at what stage are your development operations?

Last year, Niko had a fairly active year, operating with eight blocks under nine PSCs and one license, all with seismic and drilling commitments. Niko completed all required commitments for their major work program of seismic activities on all blocks. Niko is currently working on organizing a rig to drill on the north coast and onshore. Over the next two years, Niko plans to shift towards the drilling stage.

As with the industry anywhere in the world, there is a great deal of debate surrounding the government’s participation in the terms and rules set out for PSCs or licensing agreements. How do you feel about the PSCs that are established here and the terms of contract required by the government?

Niko is here in Trinidad because they feel they can live with the terms set out by the government. PSCs in Trinidad are similar to what one would find anywhere else in the world, with an exploration phase, two extensions, and 25 years to produce. Niko acknowledges that there are ongoing discussions regarding production splits and the tax regime, but these are issues being addressed as the industry evolves.

Niko has shifted more of its attention from existing production to exploration, with an investment of $750 million split between Indonesia and Trinidad. How important is Trinidad to your global operations?

Trinidad is the second largest portfolio Niko has and is a significant part of the company’s global operations. Niko looks to invest accordingly in Trinidad, with a focus on meeting well commitments for drilling.

What are some of the challenges associated with operating in Trinidad and Tobago?

Bringing a rig or associated services into the country is a significant challenge, but Niko has been able to counter this challenge by signing rig-sharing agreements with other operators in the country and with drilling services companies. Many service companies prefer to operate out of Venezuela, which is not ideal for Niko. Resource constraints and the high cost of doing business in Trinidad and Tobago are also challenges, but Niko has been able to overcome these challenges by bringing synergy into the country.

Given the current state of the market, how do you feel about Niko’s future? What are some of the company’s medium-term goals?