Tengratila Gas Field explosion in June 2005. Star file photo

Bangladesh's chance to realise $106 million from Niko as compensation for the blow-outs at Chhatak gas field brightened further on Tuesday after an international tribunal rejected two cases filed by the Canadian company, officials said.

At a press briefing in his office in Dhaka, Petrobangla Chairman Hossain Monsur said the final decision now lied with the district judge's court of Bangladesh.

The new development came after a team of lawyers secured Bangladesh's right to claim $106 million from Niko in Bangladesh's court at the tribunal of ICSID (International Centre for Settlement of Investment Disputes) in London.

Tawfique Nawaz, a senior lawyer of Supreme Court, led the Bangladeshi team. He was assisted by Imtiaz Farooq, advocate of SC, Alison Catherine McDonald and Luis Gonzalez Garcia of Matrix Chamber in London.

In the proceedings before the tribunal, the Bangladesh team challenged the jurisdiction of the ICSID tribunal to hear the claims made by Niko Resources (Bangladesh) Ltd.

In its decision, the tribunal, presided over by Michael E Schneider, said it "has no jurisdiction over Bangladesh, which therefore no longer be a respondent in this arbitration."

The tribunal said it also had no jurisdiction over Petrobangla under the joint venture agreement signed between Niko and Bapex.

The ruling paved the way for Bangladesh to claim the compensation on the 2005 blow-outs at Magurchhara and Tengratila under the Chhatak gas field from the Canadian company at the district judge's court.

Monsur also said the twin blow-outs destroyed the upper layer of the gas field completely. As a result, the country had been deprived of discovering commercially viable gas from the field.

He said if the court gives verdict in favour of Bangladesh, Petrobangla would see whether it would confiscate the assets of the Canadian company.

The hearing will take place soon at the court, said officials of Petrobangla.