Niko exits KG-D6 block

Reliance Industries and the UK’s BP Plc have paid $36 million to their Canadian partner Niko Resources for the latter to exit the eastern offshore KG-D6 block.

Niko, in a statement posted on its website, said it has exited the KG-DWN-98/3 block and its 10 per cent stake has been taken over by Reliance and BP. The company was paid $36 million to settle an arbitration it had initiated against Reliance and BP for trying to force it out of the block over a default in payment.

Niko said the net proceeds from the transaction would be distributed solely among its lenders.