ICSID Orders Petrobangla to Pay Niko $35M It Owed for Gas Deliveries

Canada's Niko Resources Ltd. reported Monday that Bangladesh Oil Gas & Mineral Corp. (Petrobangla) has been ordered by the International Centre for Settlement of Investment Disputes (ICSID) to pay approximately $35.3 million to its indirect subsidiary Niko Resources (Bangladesh) Ltd. (NBRL) for the amount owed to the latter for gas deliveries made under the Feni Gas Purchase and Sale Agreement.

The ICSID issued the Third Decision on the Payment Claim initiated by the NRBL against state-owned Petrobangla seeking approximately $25 million plus around $1.8 million (BDT 140 million) for gas delivered from November 2004 to April 2010; $6 million and $0.64 million (BDT 50 million) in interest to Sept. 11, 2014; and interest from Sept. 12, 2014, at the six‐month London Interbank Offered Rate plus 2 percent for U.S. dollar amounts and 5 percent for BDT amounts, compounded annually.

Niko said the payment must be made immediately and is not subject to any contrary orders from the Courts in Bangladesh. In addition, the company said that in view of past difficulties that have occurred with respect to the payment of the amount owed to NRBL, the Tribunals will retain jurisdiction over Petrobangla and NRBL until final settlement of the payment.

"There is no assurance that Petrobangla will comply with the Third Decision on the Payment Claim," Niko said in the press release.



Have a news tip? Share it with Rigzone!
Email news@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Rigzone Staff
e-mail us at news@rigzone.com
 -  MEO Australia Seeks Shareholder Approv... (Sep 28)
 -  Karoon Buys PEPC's 35% Stake in 4 Sant... (Sep 28)
 -  Farstad Shipping Sells AHTS Lady Sandr... (Sep 27)
 -  Real Energy Prepares for Tamarama-1 We... (Sep 27)
 -  Trelleborg Appoints Unique Group as it... (Sep 27)


Most Popular Articles

From the Career Center
Jobs that may interest you
United States Houston: Product Compliance Manager
Expertise: Regulatory Compliance
Location: Houston, TX
 
Contracts Administrator
Expertise: Contracts Administration
Location: Houston
 
Operator Qualification Specialist
Expertise: Environmental, Safety & Training|Operations Management|Regulatory Compliance
Location: Cushing, OK
 
search for more jobs

Brent Crude Oil : $45.97/BBL 2.91%
Light Crude Oil : $44.67/BBL 2.74%
Natural Gas : $3/MMBtu 0.33%
Updated in last 24 hours