Canadian multinational oil and gas company Niko has to pay $42 million to Bangladesh as the country achieved a final victory in the international court in its long legal battle against Niko over Tengratila blowout.
“An international arbitration tribunal has ordered Canadian energy company Niko Resources to pay $42 million in compensation to Bangladesh over the Chhatak gas field blowouts that occurred in 2005,” said a Petrobangla official.
Rezanur Rahman, the chairman of Petrobangla Engineers, told the media Friday night that Niko will have to compensate Bangladesh with $42 million.
According to him, the International Center for Settlement of Investment Disputes (ICSID), a Washington-based international tribunal, has mandated that Niko pay Tk.516 million in compensation at an exchange rate of Tk.123 per dollar.
In its ruling, the court made it plain that Niko’s poor management and disregard for global petroleum industry norms were to blame for the catastrophe.
“After a long legal battle, Bangladesh has won a final victory in the case against Niko in the international court of justice over Tengratila gas field explosion at Chhatak, Sunamganj,” the official said.
Niko was given the responsibility of exploring gas in the Tengratila gas field in 2003. However, due to inefficiency and failure to maintain international standards, there were two terrible explosions on January 7 and June 24, 2005.
Approximately eight billion cubic feet of precious gas were burnt by the fire’s flames. The nature and nearby villages were completely destroyed. Niko later declined to pay the Tk.746 crore in compensation that Petrobangla had asked. In the end, the international court heard the case.
“We were waiting for this final verdict,” stated Engineer Rezanur Rahman, Chairman of Petrobangla. In order to drill new wells in the Chhatak gas field, a Development Project Proposal (DPP) has already been created. After consulting with attorneys, swift action will be taken.
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