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Friday, 05 December, 2008, 16:20 GMT | more >>

Niko 'staying put' in Bangladesh



By Upstream staff 

Canada's Niko Resources has denied reports that it is exiting Bangladesh, reaffirming its commitment to the country's play.

Country manager Brian Adolph will remain in Dhaka, contrary to reports, and will oversee the company's operations in both Bangladesh and Thailand.

The company also denied reports its investment in Bangladesh had been put on hold, saying that its budget was waiting on approval from a joint management committee consisting of representatives from partner Bapex and itself.

Niko is still waiting for a final damages assessment following two blowouts on its Chattak field in Bangladesh last year. The company said the figure, as assessed by the Bangladesh government is still under review.

However, Niko has already paid what it called "inconvenience costs" and compensation for local damages, including the loss of crops.

The Canadian outfit has also denied reports that talks with state-owned Petrobangla over compensation had broken down. "The dispute resolution process with the government is ongoing and has not failed or been rejected by Petrobangla," Niko said. "Settlement of outstanding issues in a court of arbitration is a distinct possibility."

Niko added that gas price talks with Petrobangla have been fruitful and that tariffs for gas from the Feni field will be finalised soon. Once a price is agreed, Petrobangla will settle outstanding bills for gas already delivered, Niko added.

Output from Feni has declined in recent years, from 40 million cubic feet per day in 2004 to 16 MMcfd at present. Niko employs 35 people in Bangladesh and has no plans to reduce its workforce in the country


Monday, 26 June, 2006, 12:37 GMT  | last updated: Tuesday, 27 June, 2006, 07:42 GMT

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