B Mirror Report : Bangladesh has secured a decisive victory in an international arbitration case against Canadian multinational oil and gas company Niko Resources, with the firm ordered to pay $42 million in compensation over the Tengratila gas field blowouts.

An official of Petrobangla said the ruling was delivered by the Washington-based International Centre for Settlement of Investment Disputes (ICSID), which found Niko responsible for the disasters that occurred at the Chhatak gas field in 2005.

Petrobangla Chairman Engineer Rezanur Rahman confirmed the verdict to the media on Tuesday night, stating that the company must pay $42 million equivalent to around Tk 516 million at the current exchange rate  as compensation to Bangladesh.

The international tribunal observed that the explosions were caused by Niko’s mismanagement and failure to comply with internationally accepted petroleum industry standards.

“After a prolonged legal battle, Bangladesh has achieved a final victory in the international court regarding the Tengratila gas field explosion in Chhatak, Sunamganj,” a Petrobangla official said.

Niko was awarded the contract to explore gas at the Tengratila field in 2003. However, due to operational negligence and lack of proper safety measures, two major blowouts occurred on January 7 and June 24, 2005. The incidents resulted in the loss of nearly eight billion cubic feet of natural gas and caused widespread environmental and infrastructural damage in surrounding areas.

Following the disaster, Petrobangla sought Tk 746 crore in damages from Niko, but the company declined to pay, leading the matter to be taken to international arbitration.

Rezanur Rahman said authorities had been awaiting the final ruling and are now preparing the next steps. A Development Project Proposal has already been drawn up for drilling new wells in the Chhatak gas field. We will move forward swiftly after consulting with our legal team,” he added.