Tengratila Gas Field Blowouts
Niko wants talks with govt to end disputes over compensation
Porimol Palma, back from Tengratila
Niko Resources (Bangladesh) Ltd. has expressed keen interest to hold talks with the government to resolve the disputes over the compensation and bank guarantee for the blowouts at Tengratila gas field."Sparing more time in approving us to go for production will just increase the production cost of gas at Tengratila," Niko Country Manager Brian Adolph told a group of journalists at the gas field at Duarabazar in Sunamganj yesterday. Niko wrote a letter to the energy ministry asking for the approval and seeking clarification on the disputed issues, which has been sent to the Prime Minister's Office for recommendation. "I hope that there will be a positive answer. Otherwise, we will have to release the rig from Chittagong. It will take at least six months to bring back the rig once it is released," the country manager said. Brian Adolph said Niko is paying 15,000 dollars a day to the US drilling company Century Drilling for keeping its rig on standby in Chittagong. There are other logistic expenses as well, he added. Niko yesterday distributed Tk 43,39,520 compensation among 625 families affected by the blowouts at a simple ceremony at Duarabazar Upazila Nirbahi Office. So far, it has given a total of Tk 34,591,944 compensation, the company officials said. Brian Adolph said Niko is ready to go for production within six months of getting the government's nod. This time the company is confident enough that there will not be any more blowouts as it has acquired detail knowledge on the geology of the area through a drilling, he added. The government had earlier claimed 8.9 billion cubic feet (bcf) gas and Tk 250 crore from the Canadian company as part of a three-stage compensation for the blowouts and Tk 84 crore for environmental damage caused by the blowouts that took place in January and June last year. The company has already agreed to compensate the government's share of 3 bcf gas lost in the accidents but says that the basis of other claims are not known to them and the information regarding this should be shared in order to reach a consensus though there is no such provision in the Joint Venture Agreement (JVA). Beside the burnt 3 bcf gas, a government committee estimated the loss of gas at 5.9 bcf at sub-surface level and a possible loss of 45 bcf at the third level of the gas field, also known as Chhatak marginal gas field.
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