Niko Gets Approval to Sell Stake in Trinidad & Tobago's Block 5(c) to BG

Niko Resources Ltd. (Niko or the Company) announced Thursday that the Government of Trinidad and Tobago has approved the previously announced sale of a 25 percent interest in Block 5(c) in Trinidad and Tobago to a subsidiary of the BG Group, 75 percent interest owner and operator of the block, for gross proceeds of $62 million. Under the terms of the agreement, a deposit for a portion of the gross proceeds was paid to Niko in early April and the remaining proceeds, adjusted for closing adjustments, is to be paid to Niko prior to the end of June.

Upon closing of the transaction, under the settlement agreement entered into in December 2013 with Diamond Offshore, a specified portion of the proceeds will be used to reduce the Company’s outstanding obligation to Diamond. In addition, under the terms of the Company’s term loan facilities agreement, $20 million of the proceeds will be used by the Company to fully repay Facility E and, depending on certain circumstances, some or all of the remaining proceeds will be offered to the Lenders as a potential partial prepayment of Facility A.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Project Manager, Oil and Gas
Expertise: Petroleum Engineering|Project Management
Location: West Chicago, IL
Business Development Manager
Expertise: Business Development|Construction Manager
Location: Portland, OR
Business Development Manager
Expertise: Business Development|Construction Manager
Location: Denver, CO
search for more jobs

Brent Crude Oil : $51.78/BBL 0.77%
Light Crude Oil : $50.85/BBL 0.83%
Natural Gas : $2.99/MMBtu 4.77%
Updated in last 24 hours