ICSID Ruling A Positive Step for Niko
CALGARY, ALBERTA -- (Marketwired) -- 08/21/13 -- Niko Resources Ltd.
("Niko") (TSX:NKO) is pleased to advise that on August 19, 2013, an
international Tribunal constituted under the Rules of the
International Centre for Settlement of Investment Disputes ("ICSID")
issued a decision respecting its jurisdiction to decide two
arbitration claims initiated by Niko Resources (Bangladesh) Ltd.
("NRBL") against the Government of Bangladesh and two of its crown
corporations, Bangladesh Oil Gas & Mineral Corporation
("Petrobangla") and Bangladesh Petroleum Exploration & Production
Company Limited ("Bapex").
In the arbitration respecting responsibility for and damages arising
from the Chattak well blow-outs in 2005, the relief sought by NRBL
includes a declaration that NRBL has no liability for any damages
arising from the blow-outs and that it owes no compensation for such
damage. The Tribunal stated that there can be "no doubt" that it has
jurisdiction to determine whether NRBL has any liability for the two
blow-outs under the Joint Venture Agreement between it and Bapex and
to make the requested declaration if it is well founded. The Tribunal
rejected Bapex's arguments that ICSID did not have jurisdiction to
decide the issues. The Tribunal, however, did not find jurisdiction
respecting Petrobangla or the Government, noting that they were not
parties to the Joint Venture Agreement and that the Joint Venture
Agreement expressly stated that the responsibilities and obligations
of Petrobangla and the Government "in all relevant Articles, Annexes
and Amendments under this JVA" have been assigned to Bapex.
The second arbitration initiated with respect to NRBL's claim for
payments owing to it, and in part to Bapex, by Petrobangla for gas
deliveries made under the Gas Purchase and Sale Agreement between
those parties since 2004 will also proceed. The ICSID Tribunal
rejected Petrobangla's arguments contesting jurisdiction and
confirmed ICSID's jurisdiction to determine NRBL's claim against
Petrobangla for payments owing to NRBL for delivered gas.
It is expected that the Tribunal will shortly give further directions
respecting the process for the hearings on the merits in the two
arbitrations. Niko is encouraged that the ICSID Tribunal will finally
be able to determine the merits of these claims.
Certain statements in this press release constitute forward-looking
information. Specifically, this press release contains forward
looking information relating to timing of the Tribunal's further
directions on the process for the claims and the timing of the
arbitrations discussed herein. These forward looking statements are
based on certain key expectations and assumptions of management.
Forward looking information involves significant known and unknown
risks and uncertainties, which could cause actual results to differ
materially from those anticipated. These risks include, but are not
limited to: the risks associated with the oil and gas industry and
risks related to the timing and processes of the ICSID. The reader is
cautioned that the assumptions used in the preparation of such
forward looking information, although considered reasonable at the
time of preparation, may prove to be incorrect. The forward looking
information included herein is made as of the date of this press
release and Niko assumes no obligation to update or revise any
forward looking information to reflect new events or circumstances,
except as required by law.
Niko Resources Ltd.
Edward S. Sampson
Chairman of the Board, President & CEO
Niko Resources Ltd.
VP Finance & CFO
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