Niko Resources Ltd. executed an agreement with subsidiaries of Diamond Offshore relating to the settlement of outstanding claims under drilling contracts, and to the Diamond settlement agreement executed in December 2013.
Under the 2016 settlement agreement, Niko has:
--Agreed to make future payments to Diamond equal to 20% of amounts to be retained by Niko pursuant to the waterfall distribution under the terms of the amended and restated facilities agreement, subject to a cap;
–Paid a cash settlement amount to Diamond; and
--Assigned Diamond a portion of potential contingent payments under the sale agreement for Niko’s interest in five Indonesian production-sharing contracts.
These actions were carried out in exchange for full and final mutual releases of outstanding claims under the drilling contracts and the 2013 settlement agreement, including related judgements.
Robert S. Ellsworth Jr., interim CEO of Niko, said that the company plans to ultimately monetize these assets.
Niko Resources Ltd. is based in Calgary, and explores and produces oil and gas in India and Southeast Asia.
Diamond Offshore is based in Houston.
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