The High Court on Monday issued a stay order on operation of the agreement that was signed with Niko Resources. The HC also issued a rule asking why that Joint Venture Agreement (JVA) should not be declared illegal.
Professor M Shamsul Alam, an energy advisor to the Consumer Association of Bangladesh (CAB), filed a writ petition challenging the legality of the JVA. The HC bench comprising Justice Obaidul Hassan
and Justice Krishna Debnath gave the order following that petition.
The Government of Bangladesh represented by its Secretary, Energy Division of the Ministry of Power, Energy and Mineral Resources, the Bangladesh Oil, Gas and Mineral Corporation (Petrobangla), Bangladesh
Petroleum Exploration and Production Company Ltd. (BAPEX), Niko Resources Limited of Canada and Niko Resources (Bangladesh) Ltd were made respondents in the writ petition.
Barrister Tanjib-ul Alam assisted by lawyer Imran Anwar, appearing on behalf of the petitioner, conducted the hearings before the court.
There was a joint venture agreement (JVA) between Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) and Niko Resources (Bangladesh) Limited signed in 2003 for production of petroleum from the gas field of Tengratila of Chhatak, Sunamganj. In 2003 Petrobangla signed another agreement on supply and trading the
gas. According to the agreement BAPEX was the owner of 10 percent of the total share.
Two successive blowouts happened at Tengratila gas field while Niko was drilling that gas field in 2005. Niko was solely responsible for it but they denied paying any compensation for the losses occurred by the blowout. Moreover, to avoid the compensation NIKO launched a counter legal fight by filing litigation to the International Court of Settlement of Investment Dispute (ICSID). The final verdict of this case is soon to be published.