The New Nation - Internet Edition

ACCORDING to media reports, the 'National Committee to Protect Oil, Gas, Mineral Resources, Power and Port' the other day blasted the interim government for 'withdrawing' the compensation case from a local court against the US giant Chevron for the gas loss in the Magurchhra blowout. In a statement, the national committee said that the government did not take any step to realise Tk 9,000 crore compensation from Chevron for the blowout.

Two months ago in June, the national committee raised the issue asking why the government was not taking effective steps to realise compensation money from the US oil company for the blowout that took place in June 1997 and wrecked havoc to the gas structure, the environment and the locality that sustained huge losses. The blowout at the field, caused by the negligence of Occidental Ltd, burnt around 245,86 billion cubic feet of gas at the field in Block-14 and damaged a vast area, including the reserve forest, according to the government's inquiry committee.

Occidental - another US oil company, was the operator of the Magurchhara gas field when the blowout took place - transferred its liabilities to another Unocal two years later. Chevron eventually took over Unocal Bangladesh in 2005. The previous Awami League government while in power did not make any claim of compensation to Occidental and allowed it to leave the country transferring all its liabilities to Unocal Bangladesh. The subsequent BNP-led four-party alliance government formally claimed compensation from Unocol which, later also transferred liabilities to Chevron and left the country without resolving the issue. It is binding on the government to take all steps for realisation of the compensation from the foreign company for their negligence.