Tullow has said it was never consulted before the sell-out deal was sealed and claims as an operator of Block 9 operations, its consent is needed to make any such transfer.

"Given the historical and legal position surrounding Block 9 Tullow does not accept this attempt by Chevron-Texaco to renege on its commitment to its partners and to the government of Bangladesh, and Tullow will act accordingly," read a letter of the Irish company's legal and commercial director, A Graham Martin, to Chevron-Texaco yesterday.

Graham Martin arrives in Dhaka today to fight out the sellout move.

Tullow holds 28 per cent share in the Block 9 production sharing contract (PSC), the American oil giant Chevron-Texaco 60 per cent and Bangladeshi company Bapex 10 per cent without investment.

On Wednesday, Chevron's regional managing director flew in the city to hand Petrobangla Chairman SR Osmani a letter stating all shares of Chevron-Texaco have been sold out to Niko, a Canadian oil company with a dubious record of being disqualified in the second round block bidding on both financial and technical grounds.

Like Tullow, Bapex has also sent the Chevron-Texaco decision to its legal adviser, and it will get the advice Saturday.

According to Petrobangla sources, the US company cannot strike such a deal without informing its partners.

"The course of our action will however depend on the ministry," a top Petrobangla said. "But, we very well can take legal action," said a high Petrobangla official.

UNB meanwhile reports: Copies of the Tullow objection letter was also sent to State Minister for Energy AKM Mosharraf Hossain, Energy Division Secretary Khandaker Shahidul Islam, Petrobangla Chairman SR Osmani and its Director (PSC) Engr Raihanul Abedin.

A separate letter addressed to Mosharraf from Tullow says it does not accept that ChevronTexaco has the right to transfer their rights and obligations under the PSC.

Specially, says the letter, it cannot be in this manner, without consulting or seeking prior approval of the government, Petrobangla and other partners.

"...Tullow won block 9 in the second-round bidding. The Bangladesh government at that time wished to include Chevron and Texaco in the block, as a result of which an arrangement was forced upon Tullow to accept them in a joint venture and to agree to transfer the operatorship to Chevron in case of a discovery," read the Tullow letter.

"We understand that the government forced this decision upon Tullow following the assurance by Chevron of their long-term commitment to Bangladesh," it said

Accordingly, the provisions of the PSC and the joint operating agreement, which regulates arrangements between the parties, were based on such assurance and commitment by Chevron.

"In attempting to transfer a majority interest in Block 9 to an entity which was not party to the original arrangements, Chevron are reneging on their obligations both to partners and to the government of Bangladesh and provoking considerable uncertainty over the imminent drilling campaign.

"Given the history of painful and protracted negotiations on this block, we do not accept that they have the right to transfer their interest in this manner and at this time and we would request the full support of the ministry and the government in preventing the implementation of this action," the letter stated.