TORONTO (miningweekly.com) – Calgary-based Niko Resources, which has oil and gas exploration operations across Southe East Asia, on Monday said it was currently evaluating the impact of the Indian government’s new domestic gas pricing policy on its assets in the country.
The company’s TSX-listed stock on Monday fell by more than half after the Indian government on Saturday announced a fixed new base price for domestically produced gas at $5.61 for every million British thermal units (mBtu), up from $4.20/mBtu.
Niko is partnered with UK-based Reliance Industries to develop a $10-billion project on the D6 block in the Krishna Godavari basin gas field, off the east coast of India.
Reliance and main project partner British Petroleum in May launched arbitration against the new Indian government, after new Prime Minister Narendra Modi ordered a review of a previously proposed $8/mBtu price level.
Niko shares lost C$0.36 to trade at C$0.37 apiece early on Monday afternoon.