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Reliance, BP take over Niko's 10% stake in KG-D6 block

New Delhi: Reliance Industries and UK's BP plc have taken over the 10% shareholding of their partner Niko Resources in the eastern offshore KG-D6 block after the Canadian firm defaulted on paying for its share of gas field development cost.

Sources with knowledge of the development said the oil minister has given 'unconditional' nod to Reliance and BP for taking over 10% interest of Niko in KG-DWN-98/3 or KG-D6 block in the Bay of Bengal.

Reliance and BP split Niko's share in proportion to their existing shareholding in the block. Subsequent to this, Reliance's stake in KG-D6 has gone up to 66.67% from previous 60% and that of BP to 33.33% from 30%, the sources said.

E-mails sent to Reliance and BP for comments remained unanswered. Niko, which defaulted on payment of loans to its lenders, has been unsuccessful in seeking a possible buyer for its 10% stake in Bay of Bengal block KG-D6 or securing financing for its share of the USD 5 billion R-Cluster, Satellite Cluster and MJ development projects in the block.