Bangladesh never filed any case with any US court for compensation in the Tengratila blowout.

In a twist to truth, the Canadian Press, crediting Niko, reported on August 25 that a judge in Texas had dismissed the case filed by residents of Bangladesh who claimed themselves as victims of an uncontrolled release of gas at one of the company's wells last year.

In reality, some unknown people reported to be Bangladeshis filed the case in the USA in September last year.

Interestingly, the Canadian Press also reported the lawsuit news last year, with the Bangladeshi media reproducing the news along with reactions from Niko Resources executives, who claimed that the case was "politically motivated." The Canadian Press then quoted Niko executive Rick Alexander as saying; "The effort to get the order from the court was made from a leader of an opposition party in Bangladesh."

No Bangladeshi ever claimed to have filed such an unusual case without involving the Bangladesh government. The press could not also mention names of the complainants.

The chief of the company also said in September 2005 that he could not find any reason why the lawsuit was filed in Texas.

But on August 25 last, Niko executives made public statements which give the impression that the company has been relieved off all compensation claims.

The Niko Resources Ltd at a briefing told the media that the judge in Texas presiding in a $250 million lawsuit filed against Niko and its Bangladesh subsidiary has dismissed the claim on the same day.

''It's a positive event for the company, for sure,'' president and CEO Ed Sampson said in an interview with The Canadian Press.

Soon after this announcement the Niko stock closed up 2.42 percent or C$1.43 to C$60.54 at the Toronto Stock Exchange.

Earlier on April 1, Canadian newspaper Globe and Mail ran a report on "Bangladesh Blowout" in which reporter Geoffrey York tried to portray Niko as an "innocent victim" of Bangladesh's hostile and corrupt environment. The paper portrayed Niko as a "success" story, which has grown into a $2.5 billion company from 220 million in the last five years.

The paper even claimed that Niko was being made a scapegoat for jousting bureaucrats and feuding politicians, as the election is approaching the country. It added, "critics" claim that the company had won the contract without a formal competition and some "factions" leaked "rumours" of corruption and incompetence, which "allowed" the government to drag the price negotiation for gas purchase from the Niko-Bapex's Feni gas field.

However, in an interview with The Daily Star soon after that news came out, Niko's Bangladesh chief could not say anything when he was pointed out that the Canadian company was caught bribing the ousted state minister for energy AKM Mosharraf Hossain with a Tk 1 crore car last year. He also could not successfully rebut the allegations that Niko had illegally encroached lands of the Sylhet Gas Field company and installed a 19km gas pipeline illegally using Titas Gas company's pipeline.

Technically and financially disqualified during the country's second round block bidding in 1998, Niko entered Bangladesh energy scenario in 2004 through the backdoor by striking a joint venture deal with Bapex. There had been no open tender for the deal in which Niko was given the unexplored Tengratila gas field in violation of rules and regulations.

Accused of flouting rules and regulations frequently, the company has held responsible for twin blowouts at the Tengratila in few months.