Chhatak gas field, widely known as Tengratila gas field, is still leaking after 11 years of two blowouts because of alleged negligence of Niko Resources (Bangladesh) Ltd, the foreign operator of the field.
The power, energy and mineral resources ministry in early June asked ministries concerned, including agriculture and environment ministries, to examine the impact of continuous gas seepage on the inhabitants, crops, water and environment at Tengratila, said ministry officials.
State-run oil, gas and mineral resources corporation Petrobangla chairman Istiaq Ahmad admitted that Tengratila gas field was leaking.
He told on Thursday that Petrobangla sent some recommendations to the power and energy ministry in this regard in late May.
The blowouts took place on January 7 and June 23 in 2005 at the same spot of Tengratila in Sunamganj.
On May 25, Petrobangla, in a letter to the ministry, made the recommendations based on a study conducted by a foreign expert team, said officials.
The expert team made some immediate and short-term recommendations to protect villagers in the area from risks caused by the gas seepage, the letter said.
According to the letter, the team also made medium- and long-term recommendations aiming at collecting ‘complete information’ about the impacts of the blowouts on public health and environment and monitoring other long-term effects.
Although no presence of methane gas should be in air at normal condition, the expert team found the presence of methane gas at the rate of approximately 30,000 ppm (parts per million) in the air at the blowout spot, the officials said.
The study found up to 50 ppm methane in the air at a distance of 500 metres from the spot of the blowouts while the tolerance limit of methane gas for human body is 1.5 ppm, they said.
The study found at least 20 families living in 500 metres of the blowout spot, the officials said.
Derek Smith, the lawyer for Petrobangla at International Centre for Settlement of Investment Disputes against Niko Resources (Bangladesh) Ltd and Niko Resources (Canada) Ltd, sent the expert team to Bangladesh in two phases, in March and May, to examine the extent of losses caused by the blowouts.
In 2010, Petrobangla made as defendant in two cases filed by Niko with ICSID.
Towards the end of 2015, Petrobangla, in a case filed by Niko with ICSID, claimed $1 billion in damages from Niko for the losses of resources and environment due to the blowouts in 2005.
Niko in its cases sought ‘an award for payment of the outstanding invoices for the gas delivered (the payment claim) from Feni field’ and ‘a declaration that it was not liable for damages in relation to the blowouts (the compensation declaration)’.
Petrobangla, following a High Court order passed on November 17, 2009, suspended payments of the bills to Niko for the gas it supplied from Feni field.
In its judgement, handed down on September 11, 2014, the ICSID asked Petrobangla to pay Niko Tk 216 crore for the outstanding gas bills of Feni field.
The other case field by Niko, in which Petrobangla demanded compensation, is still pending with ICSID.