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DHAKA, Jan 30, 2026 (BSS) - Canadian multinational oil and gas company Niko has to pay $42 million to Bangladesh as the country achieved a final victory in the international court in its long legal battle against Niko over Tengratila blowout.

"An international arbitration tribunal has ordered Canadian energy company Niko Resources to pay $42 million in compensation to Bangladesh over the Chhatak gas field blowouts that occurred in 2005," said a Petrobangla official.

Chairman of Petrobangla Engineer Rezanur Rahman confirmed the verdict to the media last night and said that Niko will have to pay $42 million to Bangladesh in compensation. 

The Washington-based international tribunal International Center for Settlement of Investment Disputes (ICSID) has ordered Niko to pay the amount as compensation (Tk.516 million, exchange rate of Tk.123 per dollar), he said. 

The court clearly stated in its observation that the disaster occurred due to Niko's mismanagement and failure to follow international petroleum industry standards.

"After a long legal battle, Bangladesh has won a final victory in the case against Niko in the international court of justice over Tengratila gas field explosion at Chhatak, Sunamganj," the official said.

Niko was given the responsibility of exploring gas in the Tengratila gas field in 2003. However, due to inefficiency and failure to maintain international standards, there were two terrible explosions on January 7 and June 24, 2005. 

The flames of that fire burned about eight billion cubic feet of valuable gas. The surrounding towns and environment were devastated. Later, when Petrobangla demanded Tk.746 crore as compensation, Niko refused to pay it. The matter eventually reached to the international court.

Petrobangla Chairman Engineer Rezanur Rahman said, "We were waiting for this final verdict. The Development Project Proposal (DPP) for drilling new wells in the Chhatak gas field has already been prepared. Next steps will be taken quickly after talking to lawyers."