Bangladesh has won a landmark ruling at an international tribunal over the 2005 explosion at the Tengratila gas field in Chhatak, Sunamganj.
The US-based International Centre for Settlement of Investment Disputes (ICSID) has ordered Canadian company Niko Resources to pay approximately $42 million in compensation to Bangladesh.
According to Petrobangla, the compensation includes $40 million for gas losses and $2 million for environmental and other damages. The verdict marks a major international legal victory for Bangladesh, recognizing the country’s financial and environmental losses after years of litigation.
Two massive explosions occurred in 2005 during exploratory drilling conducted by Niko at the Tengratila gas field, causing extensive damage and burning large volumes of recoverable gas. After winning cases in local courts, the High Court and the Supreme Court, Bangladesh has now also succeeded at the international level.
The ruling not only ensures compensation but is also expected to help Bangladesh move forward in managing and utilizing the remaining gas resources of the field.
