After nearly two decades, the long-running compensation case over the Tengratila gas field explosion in Sylhet is finally nearing its conclusion. Bangladesh is likely to receive $42 million in compensation following a ruling by the International Centre for Settlement of Investment Disputes (ICSID).
At the current exchange rate, the amount stands at around Tk 512 crore. The compensation will be paid by Canadian company Niko Resources, which was involved in gas exploration at the Tengratila field in Sunamganj’s Chhatak.
However, the amount is significantly lower than what Bangladesh initially sought. The government and BAPEX had claimed $1.014 billion (about Tk 12,371 crore), citing massive gas loss, environmental damage and destruction of surrounding infrastructure caused by the explosions.
Officials from the Energy Division, Petrobangla and BAPEX said they came to know about the compensation amount from a brief summary of the verdict received through legal representatives. The full text of the ruling has not yet been released.
Once the detailed verdict is available, officials said further steps will be decided after consultations with lawyers and relevant government bodies. They also pointed out that the awarded amount does not fully reflect Bangladesh’s losses, especially considering the environmental damage and the high cost of pursuing the case for years.
The Tengratila gas field was handed over to Niko in 2003 for exploration. During drilling operations, two major explosions occurred on January 7 and June 24 in 2005. The fires burned a significant portion of the gas reserves and caused widespread damage to nearby homes, farmland and infrastructure.
Following the incidents, Petrobangla demanded Tk 746.5 crore in compensation from Niko, a claim the company refused to pay.
In 2007, Petrobangla filed a compensation case in a Bangladeshi court and also withheld payments for gas supplied from the Feni gas field, which was operated by Niko. The case later went to the High Court, which ordered the seizure of all Niko assets in Bangladesh and cancelled its contracts. The verdict was later upheld by the Supreme Court in favour of Petrobangla.