Niko must pay compensation in Sunamganj gas accident
A terrible explosion in 21 years ago in the Tengratila gas field in Sunamganj caused immense damage to Bangladesh’s gas resources, as well as nature, the environment, and other resources.
This was blamed on the negligence and mismanagement of the Canadian company Niko Resources.
Bangladesh accordingly demanded compensation. Niko’s assets were seized and payments suspended.
Cases and counter-cases were filed at home and abroad regarding in this disaster.
According to a report published in this newspaper on Saturday, the Washington-based international Center for Settlement of Investment Disputes (ICSID) has delivered the final verdict, ordering Niko to pay the $42 million in compensation. In Bangladeshi currency, this amounts to about Tk 516 crore.
Petrobangla sources said the verdict includes 40 million dollars as compensation for the burning of about eight billion cubic feet of gas in the Tengratila gas field and an additional $2 million has been ordered to paid for environmental and other damages.
The Tengratila gas field, located in Chhatak, Sunamganj, was discovered in 1959.
The following year, nine gas layers were identified through well drilling at depths of 1,090 to 1,975 meters.
Mentionable that after extracting about 26.46 billion cubic feet of gas, the well was shut down due to water rising in the well.
After the start of drilling, two deadly explosions occurred there on January 7 and June 24, 2005.
This burned the gas reserves of the gas field and caused extensive damage to nearby structures and assets.
After that Petrobangla demanded compensation of Tk 746 crore from Niko for this incident, but the company refused to pay it.
Later in 2007, Petrobangla filed a case in the local lower court and stopped paying gas bills for Niko’s Feni gas field.
The High Court also ordered the seizure of all of Niko’s assets and the cancellation of the executed contract.
Later, the Supreme Court ruled in favor of Bangladesh’s claim. In 2016, Bapex claimed compensation of about Tk 9,250 crore against Niko.
The international tribunal in its final ruling stated that the excavation work was being conducted under the supervision and management of Niko Resources.
The explosions occurred due to failure to follow international petroleum industry standards and take necessary precautions, making Niko directly responsible for the incident.
The International Court of Justice’s ruling has proven the legitimacy of Bangladesh’s claim. Now, the final measures must be taken to recover and coordinate the money.
