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.
Recommended Reading
Texas Earthquake Could Further Restrict Oil Companies' Saltwater Disposal Options
2024-04-12 - The quake was the largest yet in the Stanton Seismic Response Area in the Permian Basin, where regulators were already monitoring seismic activity linked to disposal of saltwater, a natural byproduct of oil and gas production.
Iraq to Seek Bids for Oil, Gas Contracts April 27
2024-04-18 - Iraq will auction 30 new oil and gas projects in two licensing rounds distributed across the country.
Comstock Continues Wildcatting, Drops Two Legacy Haynesville Rigs
2024-02-15 - The operator is dropping two of five rigs in its legacy East Texas and northwestern Louisiana play and continuing two north of Houston.
CEO: Continental Adds Midland Basin Acreage, Explores Woodford, Barnett
2024-04-11 - Continental Resources is adding leases in Midland and Ector counties, Texas, as the private E&P hunts for drilling locations to explore. Continental is also testing deeper Barnett and Woodford intervals across its Permian footprint, CEO Doug Lawler said in an exclusive interview.
US Raises Crude Production Growth Forecast for 2024
2024-03-12 - U.S. crude oil production will rise by 260,000 bbl/d to 13.19 MMbbl/d this year, the EIA said in its Short-Term Energy Outlook.