India’s energy requirements are largely based on fossil fuels and with 1.2 billion inhabitants domestic energy resources are critical to India’s continued economic growth. India has been trying to reduce its dependence on imported oil and LNG by expanding domestic exploration and production.
Since 1997 the government has implemented the New Exploration Licensing Policy (NELP) that has provided a framework for companies to invest in India’s oil and gas potential. Niko Resources Ltd. has participated in most of the NELP rounds and has acquired working interests in 6 exploration blocks. THree of these blocks are producing and comprise the majority of the Company's production. Exploration and evaluation work continues on the other three blocks and one of the producing blocks.