Bangladesh Environmental Lawyers Association vs. Bangladesh, Writ Petition No. 6911 of 2005

In Bangladesh Environmental Lawyers Association (BELA) vs. Bangladesh, petitioner challenged the government’s joint venture agreement with Niko Resources (Bangladesh) Limited (Niko) for gas exploration at the Tengratila Gas Field in Bangladesh. Two severe blowouts and fires previously occurred in the gas field due to Niko’s drilling. Over 100 billion cubic feet of gas leaked, exhausting the Chhatak (West) gas reserves. The fires also caused loss of life, property, cattle, trees, and fisheries within the agreement area. A government committee calculated the value of loss of gas to be more than $11.8 million. BELA argued that the agreement was invalid, having been procured through flawed processes. It sought orders restraining government payments to Niko and contended that the government had failed to take action to recover compensation for environmental damage. The Supreme Court of Bangladesh held that the joint venture agreement was valid. However, it directed Niko to pay compensation according to decisions in the Joint District Court, or to mutual agreement between the parties.

(Parenthetically, the pre-Paris Agreement dispute was later considered and resolved in Niko’s favor by the International Centre for Settlement of Investment Disputes, in Niko Resources (Bangladesh) Ltd. vs. Bangladesh Petroleum Exploration & Production Company Limited & Ors., ICSID Case Nos. ARB/10/11 and ARB/10/18, Award, 11 September 2014.)