No Niko dues till damages paid

Niko Resources will not get its dues from Bangladesh until it pays damages for the blowouts at the Tengratila gas field in 2005.

Senior Correspondentbdnews24.com
Published : 8 July 2014, 04:31 AM
Updated : 8 July 2014, 04:36 AM

The Canadian firm must also need Petrobangla’s permission to sell its assets in the country, an international arbitration institution has said in a provisional order.

Niko had gone to the US-based International Centre for Settlement of Investment Disputes (ICSID) to get its dues for producing gas at the Feni field and also for clearance to sell its properties in Bangladesh.

Petrobangla received a copy of ICSID’s ruling on Sunday, its Secretary Iman Hossain told bdnews24.com.

Tengratila, which was being developed by Niko and state-run Bapex, saw a massive explosion and fire on Jan 7, 2005. The 2003 agreement gave Niko an 80 percent share, while the remaining 20 percent belonged to Bapex.
A second blowout and blaze occurred on Jun 23, 2008. The then government lodged a money suit against Niko in a Dhaka court, claiming $106 million in compensation for damages to gas resources and the environment due to the accidents.
Niko’s Feni gas field was closed down in 2010 with Petrobangla refusing to clear the company’s Tk 27 million gas bill because of unpaid damages. The company’s assets in Tengratila were also forfeited.
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