Official sources said the ministry will place the compensation claim for burning out 8.0 billion cubic feet (bcf) of natural gas from the field and also the environmental damages worth Tk 84 crore in the field area by the two blowouts.

The first blowout took place on January 7 and the second on June 24 this year.

Two separate inquiry committees, formed by the government, held Niko Resources solely responsible for the two blowouts and determined the losses accordingly.

The sources said the letter claiming compensation was sent yesterday to the law ministry for vetting and for its legal opinion on the matter before sending to Niko.

Energy ministry officials expect they will get the letter back from the law ministry with vetting and legal opinion within a day or two and then they will send it to Niko Resources.

Meanwhile, the Global President and Chief Operating Officer of Niko, Edward S Sampson, met Advisor to the Energy Ministry Mahmudur Rahman on Tuesday to discuss different issues relating to the company's operations in Bangladesh.

During the meeting, the advisor informed the Niko boss about the government's decision on compensation claim.

It was learnt that the Niko chief gave a hint to the advisor that his company would rethink about its operations in Bangladesh if the government proceeds with any tough action like the compensation claim.

Following the meeting with the Advisor, a rumour spread that Niko might pull out its operation from the country.

When his attention was drawn to the matter, Mahmudur Rahman said he has no idea about any such plan of Niko.

Contacted over telephone yesterday, Niko's President of Bangladesh Operations Quasem Sharif, now in USA, declined to make any comment on the matter.