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Govt asked not to pay Niko

HC for quick disposal of Tengratila compensation

Staff Correspondent
The High Court yesterday in a verdict directed the government to refrain from making any payment to Niko, a Canadian oil and gas exploration company in Bangladesh, which probe bodies found responsible for the damage of Tengratila gas field in Chhatak.
As per the HC verdict, the government cannot make any payment to Niko until the case, filed by the government seeking compensation for the damage. Is settled or any agreement is made between both parties in connection with the compensation.
The compensation case, filed last year, is now pending with a judge's court in Dhaka, said advocate Iqbal Kabir, a lawyer in the case.
The HC bench yesterday asked the parties concerned to take steps for early disposal of the matter.
On December 6, 2005, the Petrobangla in a letter to Niko claimed 8.9 billion cubic feet (BCF) gas and a bank guarantee of Tk 250 crore from Niko Resources Bangladesh Ltd as part of a three-stage compensation for theTengratila gas field blowouts.According to the findings of several probe committees on the Tengratila blasts, Petrobangla in its letter said three BCF gas had been lost from the surface level and another 5.9 BCF from the subsurface level of the Tengratila gasfield.
The probe committees faulted Niko's poor planning and operation for the two rounds of blowout.
Following the Petrobangla letter, Niko sought some clarifications. Then in August 2006, the Canadian company proposed to settle this matter at an international arbitra-tion court namely International Centre for Settlement of Investment Disputes.
The HC bench of Justice Syed Mahmud Hossain and Justice Quamrul Islam Siddiqui delivered the verdict upon a writ petition jointly filed by Bangladesh Environmental Lawyers Association, Ain O Salish Kendra and Odhikar. challenging the legality of the joint venture agreement between Bapex and Niko. It was signed on October 16,2003.
The petition filed in 2005 stated that the gross negligence by Niko while undertaking petroleum operation in West Chhatak caused incidents of explosion and fire on January 7 and 24 June, in 2005.
It resulted in loss of country's natural resources, damage to public and private properties and irreparable damage to environment and ecology.
Earlier on September 12, 2005, following the petition the HC directed the government to stop gas payment to Niko and freeze its all bank accounts and also issued a rule upon the government to explain why the Bapex-Niko agreement should not be declared illegal.
The secretaries to the ministries of power, energy and mineral resources, law, justice and parliamentary affairs, and the Environment and Forests, the Petrobangla, Bapex, director general of Directorate of Environment, deputy commissioner of Sunamganj, UNO of Doara Bazar in Sunamganj, and Board of Investment were directed in the verdict not to make any payment to Niko.
Advocate Mahmudul Islam assisted by advocate Syed a Rizwana Hasan appeared for the petitioners, while barrister Rokanuddin Mahmud argued for Niko, Additional Attorney General Md Kha 1 i 1 ur Rahman appeared for the government, barrister Abdullah-Al Mamun stood for Petrobangla and advocate Imtiaz Mahmud appeared for Bapex.