The International Centre for Settlement of Investment Disputes (ICSID) has declared that Niko would have to pay $1 billion as compensation to Bangladesh, State Minister for Power, Energy and Mineral Resources Nasrul Hamid said today.
“The verdict came in favor of Bangladesh after long 10 years,” Hamid said to journalists today at a video conference from his residence.
According to the ICSID decision, the Canadian oil company Niko is responsible for two back-to-back blowouts due to negligence and inefficiency, He added.
“Message is clear through this verdict that no company will be able to do whatever it wishes in Bangladesh,” Hamid said.
The state minister said the arrangement is scheduled for next September, but it will be postponed due to the ongoing COVID 19 pandemic situation.
Also, the court has also ordered to submit an assessment on health effects and environmental loss, which would further increase the losses, Hamid said.
Earlier, Niko lodged two separate cases with the ICSID on April 12 and June 16 in 2010 to realize dues and get rid of the blowouts.
