Hearing on Amended Memorial on Damages Nov 19, 20

The International Centre for Settlement of Investment Disputes (ICSID) will hold the hearing on the 'Amended Memorial on Damages' of two gas blowouts in Chattak Gas field in Sunamganj by the Canadian Company Niko Resources on November 19 and 20 virtually.
On September 7 this year, Petrobangla submitted the memorial before the court to get final verdict from the tribunal in line with the ICSID verdict. The government has engaged US-based law firm Foley Hoag LLP to assess the loss and damage caused by the blowouts.
ICSID in its verdict on February 2020 said it found Niko liable for the two blowouts as the drillings was being carried out under its own arrangements and supervision. It also ordered Niko to compensate the state-run Bangladesh Petroleum Exploration Company (Bapex) for the direct loss and damage caused by the blowouts.
"The ICSID will start its hearing from USA (Washington DC). Panel lawyers' will join the hearing from their respective areas. However, both Petrobangla and Niko would join the two days hearing," a senior official of the Energy Ministry told this correspondent on Monday.
Petrobangla lawyer Barrister Moin Ghani told the Daily Observer that the tribunal  held Niko responsible because of its failure to conduct operations diligently and in conformity with the standards of the international petroleum industry. Compensation owed by Niko to Bapex includes the gas     that escaped from two gas blowouts in Chattak Gas field in Sunamganj on January 5 and June 24 in 2005. "The court said the identification of other losses and damages that Niko must compensate, and the quantum of such compensation, is to be determined in the next phase of the pending arbitration case," Petrobangla lawyer said.
"As per schedule, ICSID will give its decision by January 2021 and the final hearing will start in July 2021," Ghani said.
He said Bangladesh will realise compensation from Niko for the loss the country incurred for rehabilitation of people from the affected areas and health, land and environment related losses.
The primary assessment said that the compensation would be over US$1 billion due to the damage caused to properties and gas reserves in and around the gas field.
Meanwhile, NIKO has submitted its reply against Petrobangla's claim and denied all charges against the company, sources in the Energy Division said.
A government investigation team found that nearly a 10km area was affected by the gas blasts. The Tengratila Gas Field caught fire twice following the explosions on January 5 and June 24 in 2005, when Canadian gas company Niko was conducting a drilling operation in the well.
According to eyewitnesses and locals, hundreds of flower and vegetable plantations, and ponds spanning 3,000 acres of land, were destroyed suddenly at the moment.
Nearly ten villages in the Tenratila, Azabpur, Girishnagar, Islampur, Bhujna, Alipur and Shantipur areas were damaged in the fire. Since then, villagers have been experiencing various diseases like breathing difficulties, heart disease and dermatitis. Gas extraction in the Tengratila field remains suspended since the explosion occurred.
Local Civil Surgeon office sources said, according to a report published in August 2016 on the health impact of the gas explosion, a total of 129 people were hit by various diseases including:45 people with breathing difficulties, 22 with heart disease, 36 with dermatitis and 22 with other ailments. In reality, the number of people affected by these diseases is much higher. People in the area have also experienced other health issues like dry hands and loss of hair.
Agriculture and fishery businesses in the area had also been greatly hampered in the aftermath of the Tengratila gas explosion.