WASHINGTON (Yosefardi) – Niko Resources Bangladesh received positive arbitration ruling after International Centre for Settlement of Investment Disputes (ICSID) declared that the arbitration board has the authority to
adjudicate the case.
The disputed named Niko Resources Bangladesh as the applicant and as he respondent are Bangladesh Petroleum Exploration & Production (Bapex) and Bangladesh Oil Gas and Mineral (Petrobangla). The decision was declared on Aug. 19, 2013. “There can be no doubt that the Tribunal has authority to determine whether Niko has any liability for the two blowouts under the JVA,” stated the tribunal.
The Canadian company began the operation in Bangladesh in November 2004. However, accident happened two times in 2005, known as Tengratila Blowouts. After the blowouts the Bangladesh government took Niko to local court demanding US$110 million as compensation.
The case wider after stated owned company Petrobangla halted US$35 million in payment of gas bill to Niko. The Canadian company then filed a petition seeking the gas bills payment. Unsatisfied with the ruling, Niko brought the case to ICSID. (indrab@yosefardi.biz)