Petrobangla now seeks further policy decision and guideline from the government regarding realisation of compensation from Unocal for Magurchhara blowout.
"We have decided to seek opinion from the government on the matter and a request letter addressed to Energy and Mineral Resources Division has been drafted," a senior official at Petrobangla yesterday told UNB.
Dr Mohammad Ismail, director (operation) of Bangladesh Oil, Gas and Mineral Corporation, or more popularly known as Petrobangla, said the letter would be sent to the ministry by today.
State Minister for Energy AKM Mosharraf Hossain speaking to UNB over phone from his hometown Mymensingh said the government would make some suggestions after consultation with experts and at the top level of the government.
"I heard Unocal responded negatively to Petrobangla's claim of compensation for the Magurchhara incident. Let's see what can be our next course of action," he said.
Petrobangla chairman Syed Sajedul Karim would not talk to the press on the sensitive issue and had his personal staff tell the press to talk to the director (operation).
Dr Ismail said Petrobangla had sent the letter to Unocal claiming US$ 685 million for burning 245 BCF (billion cubic feet) of gas following a report of the inquiry committee that probed the blowout.
In response, the US giant Unocal said the issue of compensation was already resolved through signing of supplementary agreement for blocks 13 and 14, awarding Bangladesh extra five per cent additional shares.
Unocal said there is no scope for discussion on the compensation issue, while Petrobangla says it will take steps for dialogue on the basis of government's guideline.
"We can sit across the table and discuss the issue. We claimed the com
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pensation totally on the basis of inquiry committee report and discussion is the way out," said Petrobangla director Dr Ismail.
He said Petrobangla made the compensation claim, as it was its moral obligation following the findings of the inquiry committee. "We can't change the findings. Only a review committee can review it."
When his attention was drawn that Unocal said the issue was resolved through supplementary agreement signed in 1998, he said neither he nor his chairman has any idea how the issue was resolved.
Asked if Petrobangla would go for international arbitration, he said that's the last alternative for any contract. "But, we want to resolve the issue through negotiations," Ismail added.
The Magurchhara blowout took place in June 1997 when another US company Occidental was drilling there. Later Unocal took over Occidental also shouldering its responsibility for the incident.