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Canadian verdict hailed

Niko to pay Tk 11cr compensation

Sagar Biswas
Bangladesh will get about Tk106 million (US$1.44 million) compensation from Canadian company Niko Resources Ltd for Tengratila twin gas blowout in Sunamganj in 2005. Niko is expected to pay the compensation by next month of July (within 30 days) following a verdict by a Canadian court, on June 24. Meanwhile, the verdict of Canadian court has created mixed reaction among the concerned circles. Experts welcomed the Canadian court verdict, said the amount of Niko's compensation is very 'nominal' against the actual loss of the country. The first Tengratila blowout on 7 January, 2005 destroyed the exploration rig and burnt out billions of cubic feet of gas and caused extensive damage to ecology and wildlife in the forests adjacent to the site. The second explosion, on May 28, was so devastating that the surrounding areas still remain barren without any tree or plantation, experts added. Terming the verdict as justice, Prime Minister's energy adviser Towfiq-e Elahi said, "If Bangladesh will get a compensation which is about 15 per cent of Niko's penalty. "We are also trying to realise adequate compensation from Niko by filing a case under auspicious of Anti Corruption Commission," the energy adviser added. Member Secretary of National Committee to Protect Oil, Gas, Mineral Resources, Power and Port, Prof. Anu Mohammad said, "Though the amount of fine is very small, we welcome the verdict of the Canadian court. "But, we fear that Bangladesh may not get adequate compensation from Niko due to bringing some changes in laws in the contract signed between Petrobangla and Niko, he said, adding, "a vested quarter is working on behalf of the company." "Entire Tengratila Gas Field with a reserve of 250 billion cubic feet gas was burnt due to twin blowouts, whose market price was about Tk 17, 000 crore ($2.5 billion). "Whereas, Bangladesh government filed a case against Niko with a local court demanding only Taka 746 crore as compensation after the blowouts, which is a very small figure," he said. According to a report of Department of Environment (DoE), the soil of the surrounding field has been much affected. The surrounding hill, rift valley, small mound, and low lands were affected by the emission of gas and sand. Surroundings of the blowout area like Tengrabazar, homestead area, forest trees, and hilly fruit bearing trees has been affected by the fire.