Niko sells equity stake in offshore block 5(c) in Trinidad

Offshore staff

CALGARY, CanadaNiko Resources Ltd. (TSX: NKO) has executed a definitive sale and purchase agreement for the sale of its 25% interest in block 5(c) in Trinidad and Tobago to a subsidiary of the BG Group, 75% 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 sales price will be paid to Niko in early April.

Upon closing of the transaction, under the settlement agreement entered into in December 2013 with Diamond Offshore, a specified portion of the proceeds will 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 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.

“In November 2013, we announced our restructuring plans for the company and, in December, we closed on a comprehensive financing package,” said Jake Brace, president. “The sale of our interest in block 5(c) is another important step in our plans and we look forward to further progress as we move through the year.”




Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...