ZCZC
BSS-40
NASRUL-NIKO SETTLEMENT
Niko to pay $1 billion to Bangladesh : Nasrul
DHAKA, May 3, 2020 (BSS) – State Minister for Power, Energy and Mineral
Resources Nasrul Hamid today said the International Centre for Settlement of
Investment Disputes (ICSID) has announced that Niko would have to pay $1
billion as compensation to Bangladesh.
“The verdict came in favour of Bangladesh after long 10 years,” he told
journalists today at a video conference from his residence.
According to the ICSID verdict, the Canadian oil firm Niko is liable for
two consecutive blowouts due to negligence and inefficiency, Nasrul said.
“Message is clear through this verdict that no company will be able to do
whatever it wishes in Bangladesh,” he stated.
The state minister said the settlement is scheduled for next September,
but it will be delayed due to the ongoing Novel coronavirus situation (COVID-
19).
The Petrobangla, in its compensation claim to the centre against Niko
Resources Ltd in 2016, had sought around US$ 1.0 billion, or Tk 85 billion,
for the gas field blowouts.
In 2008, the government had lodged a money suit with the court of Dhaka
joint district judge against the Niko and thus claimed Tk 7.46 billion, or
$106 million as compensation against the blowouts.
The ICSID verdict means that the Niko will have to pay compensation to the
state-run Petrobangla for its sloppy or inefficient drilling at the Chhatak
gas field.
Barrister Moin Gani, who moved the case for Petrobangla and the state-run
Bangladesh Petroleum Exploration and Production Company (Bapex), expected
that Bangladesh will get over $1 billion as compensation of which Bapex will
get $ 118 million while Petrobangla $ 896 million.
Apart from this, the court has also directed to submit assessment report
on health affect and environmental loss, which would further increase the
losses, he said.
Earlier, Niko lodged two separate cases with the ICSID on April 12 and
June 16 in 2010 to realize dues and get rid of the blowouts.
An International firm has been working to finalize the amount of
compensation.
BSS/ASG/SAS/KU/2022 HRS