Niko Resources Ltd. ("Niko" or the "Company") (TSX: NKO) provides the following corporate update:
Minimum Contracted Quantities Dispute -- India
As previously disclosed, in accordance with previous contracts for natural gas sales from the Hazira field in India, the Company had committed to deliver certain minimum quantities. For the period ended December 31, 2007, the Company was unable to deliver the minimum quantities to certain customers and the Company's joint operating partner in the Hazira field delivered the shortfall volumes from other gas sources. The Company's joint operating partner filed arbitration claims for losses incurred as a result of the delivery of these shortfall volumes.
In June 2017, the arbitration tribunal issued an award in favour of the Company's joint operating partner in an amount of approximately $17.8 million along with the interest thereon at the rate of 10% per annum from 2012 to the date of award (approximately $9.7 million) plus further interest at 10% per annum from the date of the award until payment. The Company plans to appeal the award in the Indian court system under the rules governing Indian arbitration.
SOURCE: Niko Resources Ltd.
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