Reliance, BP pay $36 m for exit of Niko in KG block
New Delhi, December 30
Reliance Industries and UK’s BP plc paid $36 million to get their defaulting Canadian partner Niko Resources to exit from the eastern offshore KG-D6 block.
In a statement, Niko said it has exited from the KG-DWN-98/3 block and its 10 per cent stake has been taken over by Reliance and BP.
The firm was paid $36 million to settle an arbitration it had initiated against Reliance and BP trying to force it out of the block over default in payment.
“An amendment to the production sharing contract for the D6 Block in India has been executed, reflecting the assignment of the 10% interest previously held by the company’s indirect subsidiary, Niko (NECO) Ltd to the remaining interest holders in the block, Reliance Industries Ltd and British Petroleum Exploration (Alpha) Ltd,” the statement said.— PTI
