Niko wants to be involved in Feni gas field again

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M Azizur Rahman
The Niko Resources is pursuing hard for getting the approval of the government for development of new gas fields. The dispute with the company over compensations of two consecutive gas field blowouts at Tengratila of Chhatak in the gas-rich Sunamgang district is, however, yet to be settled.
"Niko recently sent a letter to the Energy and Mineral Resources Division (EMRD) seeking release of fund for development of two wells at Feni gas field without mentioning anything about the compensation," a senior EMRD official told the FE.
The government is not releasing any fund to the company following a High Court order. The company owes the government around US$ 22 million on account of gas sale.
Sources said the compensation issue has remained unsettled for over two years since the two consecutive gas field blowouts at Tengratila in 2005 under the operational responsibility of the Niko Resources.
A probe body, formed to investigate the blowout, blamed Niko Resources alone for the incidents after assessing the extent of damage and compensation package.
As per the committee report, the government claimed compensation from Niko Tk 840 million for burning 8.9 billion cubic feet (BCF) of gas and causing damage to the environment and a bank guarantee worth Tk 2.50 billion for further drilling there.
But Niko has not responded to the government claim, leaving the issue unsettled for long, the EMRD sources said.
Sources said immediately after taking office by the incumbent caretaker government, the Niko had agreed to settle the dispute over compensation through local arbitration.
The EMRD appointed a local arbitrator subsequently for settling the dispute. But the Niko is yet to appoint its arbitrator, the EMRD official alleged.
On the contrary, the company is trying to get work orders to develop new gas fields and drill new wells despite having a High Court (HC) order.
The HC in September 2005 issued an injunction restraining the government from making any payment to Niko Resources Ltd, which caused heavy damage to the Tengratilla Gas Field in Chhatak.
The court also directed the government to freeze all bank accounts maintained in Bangladesh by the Niko Resources.
The HC later withdrew a part of its order relating to the freezing of the bank account to allow the company meet its local expenses.
A vacation bench of the HC passed the order after a two-day hearing of a public interest writ filed by three rights bodies - Bangladesh Environment Lawyers' Association, Ain-O-Shalish Kendra and Odhikar in 2005.
When contacted, a senior Niko official admitted that the company was making a move to get its fund released.
He, however, did not provide details on the issue of arbitration aiming at settling the dispute over compensation for Tengratila gas field blowouts.