Reliance Industries Ltd and BP Exploration (Alpha) Ltd (BPEAL) has bought its estranged partner Niko Ltd’s 10 per cent stake in the KG-D6 for $36 million.
Niko (NECO) Ltd, the indirect subsidiary of Niko Resources Ltd, had entered into a settlement agreement with Reliance and BPEAL under which it agreed to withdraw from D6 production sharing contract (PSC) and settle its arbitration case filed under the rules of the London Court of International Arbitration in December 2017 in exchange for $36 million, subject to adjustment prior to closing, the company said in a statement.
The settlement agreement is subject to certain conditions precedent including the execution of the amendment to the D6 PSC, it said adding that the proceeds will be used to pay lenders’ dues.
