An international tribunal has ruled in favor of Bangladesh in the Tengratila gas field explosion case, ordering Canadian company Niko to pay $42 million in compensation. The International Centre for Settlement of Investment Disputes (ICSID), based in Washington, delivered the verdict. Petrobangla Chairman Engineer Rezanur Rahman confirmed the ruling on Thursday. The compensation includes $40 million for the loss of approximately 8 billion cubic feet of gas and an additional $2 million for environmental and other damages.

The Tengratila gas field, located in Chhatak, Sunamganj, was discovered in 1959 and later handed over to Niko in 2003 for exploration. Two major explosions occurred on January 7 and June 24, 2005, causing extensive damage to gas reserves and surrounding properties. Bangladesh initially demanded Tk 746 crore in compensation, which Niko refused to pay, leading to a 2016 lawsuit in Washington seeking Tk 9,250 crore.

According to Petrobangla, the tribunal found that Niko’s failure to follow international petroleum industry standards and take necessary precautions directly caused the explosions, making the company liable for the damages.