Niko Plans 2.8 Bcf/d Production in India

The development plan for the Dhirubhai 1 and 3 gas fields provides for natural gas production at a rate of 2.8 Bcf/d (280 MMcf/d net to the Company) envisaged within the first year of production operations, which will double India's current indigenous gas production.

The Phase I initial field development costs are estimated at US$5.2 billion (US$520 million net to the Company). The Company has spent US$179.2 million to December 31, 2007 of its expected US$520 million estimated share for the project. The approved field development plan of Dhirubhai 1 and 3 provides flexibility in the critical components of the facilities to facilitate gas production of up to 4.2 Bcf/d (420 MMcf/d net to the Company).