The International Court of Justice has ruled in favor of Bangladesh over the 2005 explosion at the Tengratila gas field in Chhatak, Sunamganj.
The US-based International Center for Settlement of Investment Disputes (ICSID) tribunal has ordered Canadian company Niko Resources to pay Bangladesh nearly $42 million in compensation.
Petrobangla said it has awarded $40 million in compensation for the loss of gas lost in the explosion and $2 million for other damages, including environmental damage. The verdict, after a long legal battle, is seen as an international recognition of the state’s financial and environmental losses.
In 2005, two explosions in the Tengratila gas field during the drilling of an exploration well by Niko caused a huge loss of gas and resources. Bangladesh won the case in local courts, the High Court and the Supreme Court, and also achieved success at the international level. The verdict is believed to have paved the way for compensation as well as the exploitation of the remaining resources of the gas field.