e_Paper, Friday, August 25, 2017

4
FRIDAY, AUGUST 25, 2017
DT
News
HC asks govt to confiscate
Niko’s property
• Tribune Desk
COURTS
The High Court yesterday ordered the government
to confiscate the properties belonging
to the Canadian oil and gas company,
Niko Resources Ltd, in Block 9.
The bench of Justice Naima Haider and
Justice Abu Taher Md Saifur Rahman also
declared illegal two agreements that Niko
had signed with Bapex and Petrobangla, reports
Bangla Tribune.
Niko signed a joint venture agreement
with Bapex for developing Chhatak East and
Feni gas fields in 2003, and another with
Petrobangla in 2006 to sell the gas extracted
from Feni gas field.
On May 9, 2016, the High Court issued a
ruling, asking the government to explain
why the two agreements should not be declared
illegal.
Following a public interest litigation, the
court also issued a stay on the contracts.
Petrobangla and Bapex claimed compensation
from Niko for the twin blowouts that
occurred in 2005 at Tengratila gas field.
State Minister for Power, Energy and
Mineral Resources Nasrul Hamid said the
High Court verdict in the Niko graft case is
very important for the government since
the Canadian energy company had been
awarded a contract by the then BNP-Jamaat
ruling alliance.
He said the government would be able to
recover the huge loss incurred because of
the twin blowouts at Tengratila gas field.
“We will place the verdict to the
international arbitration tribunal –
International Centre for Settlement of
Investment Disputes (ICSID) – where another
case over graft charges is also being tried,”
Bangladesh co-counsel for ICSID arbitration
cases barrister Moin Ghani told the Dhaka
Tribune.
In a 2010 writ petition filed by Bangladesh
Environmental Lawyers Association (BELA),
the High Court passed a judgement, directing
Niko to compensate for the blowouts
and restraining Petrobangla from making
any payments to Niko until settlement of the
compensation claims.
In 2010, Niko filed two ICSID arbitration
cases – one for the payment of gas supplied
to Petrobangla and another seeking a declaration
of nonliability for the blowouts.
On March 25, 2016, Bangladesh Petroleum
Exploration and Production Company Limited
(Bapex) and Petrobangla gave ICSID evidence
that showed Niko had obtained rights
in the Chattak and Feni gas fields through
bribery and corruption.
Furthermore, Bapex lodged a claim for
$137.4 million and Petrobangla for $1.05
billion as compensation for the blowouts
caused by Niko. •