ICSID to conduct post-hearing to identify ‘Head of Loss’

The International Centre for Settlement of Investment Disputes (ICSID) is set to conduct a post-hearing on January 24, 2022 to indentify 'Head of Loss' of Tengratila gas blowouts against Canadian company Niko Resources for burning Bangladesh's gas reserves.
On 24 January 2022, the Tribunal will transmit to the parties any questions it wishes to see addressed in the post- hearing briefs. On 28 February 2022, the parties will simultaneously file post-hearing briefs.
 On 15 April 2022, the parties will simultaneously file costs statements. On 2 May 2022, the parties will simultaneously file a brief comment on the costs statement of the opposing side, Barrister Moin Ghani, legal adviser to the Petrobangla told the Daily Observer on Tuesday.
"We are currently preparing post-hearing briefs," he said.
Niko had filed this case to seek a declaration that it was not liable for the blowouts caused in Chattak in 2005. In a Decision on Liability dated 28 February 2020, the ICSID Tribunal held that Niko had breached its
    obligations under the Joint Venture Agreement (JVA) and was liable for the blowout that occurred on 7 January 2005 in the Chattak field and had to pay compensation for losses caused to Bangladesh.
 On 18 May 2021, the Tribunal issued a Decision on Heads of Loss to determine the scope of the damages BAPEX and Petrobangla can seek from Niko and the final hearings to determine the damages were concluded in November 2021, Moin Ghani added.
The ICSID has conducted the virtual hearing to indentify 'Head of Loss' of Tengratila gas blowouts against Canadian company Niko Resources for burning Bangladesh's gas reserves due to negligence.
Bangladesh claimed over US$1.05 billion as compensation from the Canadian company Niko Resources for burning the country's gas reserves in Chatak Gas Field in Sunamganj on January 5 and June 24 in 2005 due to negligence.
In April 2010, Niko Resources filed two separate cases against Bangladesh with the ICSID, contesting its liabilities in the Tengratila gas explosions. It also filed another arbitration suit challenging the Bangladesh court's decision to withhold payment on gas produced from the Feni gas field until the claim for damages to Tengratila was settled.
Following the blowout the Energy Ministry and Petrobangla had formed three committees to assess the value of the damage in the blowout. Unfortunately, the reports were uneven and dissimilar.
"We placed all of our arguments and submitted papers supporting the claim before the ICSID. A seven-member panel from Bangladesh took part in the 'Head of Loss' discussion virtually that was administrated from Washington DC," a senior official of Petrobangla told the Daily Observer.
"We hope to obtain a favourable award of Petrobangla in this case within the next year," the Petrobangla's legal adviser said.