The International Centre for Settlement of Investment Disputes (ICSID) cleared Petrobangla as the respondent in a law suit filed by Niko Resources, which paved the way for Bangladesh to claim compensation of $106m from Niko in its role in two blowouts that caused significant damages at the Chhatak gas field in 2005. Not only is this verdict a significant milestone in Bangladesh’s efforts to get justice, it also sets an important precedent in our dealings with multinational companies.
In 2005, during the drilling operations by Niko on the Chhatak gas field, two explosions caused by negligence of the company led to grave damage to the field and the surrounding community. Public interest litigation was brought against Niko for damages and an injunction order was issued that barred Petrobangla from paying gas bills to Niko until the compensation issue was resolved.
Not only did Niko fail to comply with a Dhaka court’s order for compensation, it filed counter claims against Petrobangla for non-payment of gas with the ICSID.
In fact, negligence and efforts to avoid responsibility afterwards are not the only examples of Niko’s misconduct in Bangladesh. In June this year a Canadian court found the company guilty of bribing a former state minister.
The government of Bangladesh now needs to set a precedent that we will stand up for our rights when it comes to dealing with opportunistic and corrupt multinationals.
By pursuing and winning our due compensation from Niko, Bangladesh can demonstrate to the world that we are open for business, but not for abuse.