Bangladesh court declares Niko deals illegal
August 24th, 2017 at 4:02 pm
Bangladesh court declares Niko deals illegal

Dhaka – The High Court on Thursday declared two deals signed by Canada-based Niko for gas purchase and sales with Bangladesh’s state-run agencies, officials said.

The High Court bench of Justice Naima Haider and Justice Abu Taher Md. Saifur Rahman passed the order on a writ filed by Shamsul Alam, the energy adviser of Consumer Association of Bangladesh.

Alam in his petition, filed last year, sought an order to declare the deals illegal. He claimed that the agreements with Bangladesh were signed through corrupt practices.

The controversial Canadian company signed the joint venture agreement with Bapex in 2003 and gas procurement and sales agreement with Petrobanla in 2006.

The court also ordered the government to confiscate Niko’s property in Bangladesh, said Mokhlesur Rahman, the deputy attorney general.

Niko produced and supplied gases from Feni gas field.

A major blowout at Tengratila gas field of Chhatak sub-district in the north-eastern Sunamganj district when the company was drilling the well caused huge damage to Bangladesh in 2005.

Bangladesh has been demanding compensations from the company since then.