ICSID verdict goes in BD\\\'s way: No Niko dues till damages paid

Niko Resources will not get its dues from Bangladesh until it pays damages for the blowouts at Tengratila gas field in 2005. 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 has said. Tengratila, which was being developed by Niko and state-run Bapex, saw a massive explosion and fire on January 7, 2005. The 2003 agreement gave Niko an 80 per cent share, while the remaining 20 per cent belonged to Bapex. A second blowout and blaze occurred on June 23, 2008. The Bangladesh 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, according to bdnews24.com.