Arbitral Digest

Matter

Niko Resources (Bangladesh) Ltd. v. Bangladesh Oil Gas and Mineral Corporation (Petrobangla), Bangladesh Petroleum Exploration and Production Company Limited (Bapex) (ICSID Case No. ARB/10/18)

Case no.
ARB/10/18
Applicable rules
ICSID Arbitration Rules
  1. 14 February 2011Arbitration

    14 February 2011Arbitration

    Procedural Order No. 1 dated 14 February 2011

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals adopted the procedural calendar for the jurisdictional phase.

    Supporting details

    International Centre for Settlement of Investment Disputes

    7 months and 5 days later · 217 days

  2. 19 September 2011Arbitration

    19 September 2011Arbitration

    Procedural Order No. 2 dated 19 September 2011

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals authorised a supplemental counter-memorial on jurisdiction concerning the Compensation Declaration and set deadlines for the parties' responses.

    Supporting details

    International Centre for Settlement of Investment Disputes

    1 year and 11 months later · 700 days

  3. 19 August 2013Arbitration

    19 August 2013Arbitration

    Decision on Jurisdiction dated 19 August 2013

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal accepted jurisdiction over Niko's Compensation Declaration and Cooperation Claim against BAPEX and over Niko's payment claim against Petrobangla, reserved specified questions, and declined jurisdiction over Bangladesh. Costs were reserved.

    Supporting details

    8 participants
    Niko Resources (Bangladesh) Ltd.
    Bangladesh Petroleum Exploration & Production Company Limited
    Bangladesh Oil Gas and Mineral Corporation
    People's Republic of Bangladesh
    International Centre for Settlement of Investment Disputes
    Arbitrator
    Jan Paulsson
    Tribunal secretary
    Frauke Nitschke

    2 months and 27 days later · 88 days

  4. 15 November 2013Arbitration

    15 November 2013Arbitration

    Procedural Order No. 3 dated 15 November 2013

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals confirmed the procedural calendar for the Payment Claim and Compensation Declaration.

    Supporting details

    International Centre for Settlement of Investment Disputes

    2 months and 16 days later · 77 days

  5. 31 January 2014Arbitration

    31 January 2014Arbitration

    Procedural Order No. 4 dated 31 January 2014

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals prescribed the means of communication and filing requirements for submissions and written communications.

    Supporting details

    International Centre for Settlement of Investment Disputes

    1 month and 3 days later · 34 days

  6. 6 March 2014Arbitration

    6 March 2014Arbitration

    Procedural Order No. 5 dated 6 March 2014

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals issued directions concerning the period before the hearing on Niko's request for provisional measures.

    Supporting details

    International Centre for Settlement of Investment Disputes

    1 month and 25 days later · 56 days

  7. 1 May 2014Arbitration

    1 May 2014Arbitration

    Procedural Order No. 6 dated 1 May 2014

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals issued an order on provisional measures further to the parties' agreement and disposed of all pending requests for provisional measures.

    Supporting details

    International Centre for Settlement of Investment Disputes

    4 months and 10 days later · 133 days

  8. 11 September 2014Arbitration

    11 September 2014Arbitration

    Decision on the Payment Claim dated 11 September 2014

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal decided that Petrobangla owed Niko USD 25,312,747 and BDT 139,988,337 for gas delivered, with simple interest on the invoices at the stated rates. The compound-interest and costs decisions were reserved.

    Supporting details

    2 participants
    Niko Resources (Bangladesh) Ltd.
    Bangladesh Oil Gas and Mineral Corporation
    International Centre for Settlement of Investment Disputes

    1 month and 6 days later · 36 days

  9. 17 October 2014Arbitration

    17 October 2014Arbitration

    Procedural Order No. 7 dated 17 October 2014

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals addressed the Compensation Declaration and provided for expert assistance and further procedural steps.

    Supporting details

    International Centre for Settlement of Investment Disputes

    21 days later · 21 days

  10. 7 November 2014Arbitration

    7 November 2014Arbitration

    Procedural Order No. 8 dated 7 November 2014

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals set procedural arrangements following Procedural Order No. 7, including consultation concerning tribunal-appointed experts.

    Supporting details

    International Centre for Settlement of Investment Disputes

    24 days later · 24 days

  11. 1 December 2014Arbitration

    1 December 2014Arbitration

    Procedural Order No. 9 dated 1 December 2014

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals addressed Niko's request for measures implementing the Decision on the Payment Claim and directed further submissions.

    Supporting details

    International Centre for Settlement of Investment Disputes

    5 months and 29 days later · 180 days

  12. 30 May 2015Arbitration

    30 May 2015Arbitration

    Procedural Order No. 10 dated 30 May 2015

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals issued procedural directions for the ongoing Compensation Declaration phase.

    Supporting details

    International Centre for Settlement of Investment Disputes

    2 months and 20 days later · 81 days

  13. 19 August 2015Arbitration

    19 August 2015Arbitration

    Procedural Order No. 11 dated 19 August 2015

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals issued directions concerning the expert evidence and procedure for the Compensation Declaration.

    Supporting details

    International Centre for Settlement of Investment Disputes

    26 days later · 26 days

  14. 14 September 2015Arbitration

    14 September 2015Arbitration

    Decision on Implementation of the Decision on the Payment Claim dated 14 September 2015

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals directed Petrobangla to pay the principal and stated interest into an escrow account, specified release conditions, and continued the stated interest obligations until payment or release.

    Supporting details

    2 participants
    Niko Resources (Bangladesh) Ltd.
    Bangladesh Oil Gas and Mineral Corporation
    International Centre for Settlement of Investment Disputes

    1 month and 7 days later · 37 days

  15. 21 October 2015Arbitration

    21 October 2015Arbitration

    Procedural Order No. 12 dated 21 October 2015

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals issued procedural directions for the Compensation Declaration phase.

    Supporting details

    International Centre for Settlement of Investment Disputes

    7 months and 5 days later · 218 days

  16. 26 May 2016Arbitration

    26 May 2016Arbitration

    Procedural Order No. 13 dated 26 May 2016

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals issued procedural directions following the Third Decision on the Payment Claim.

    Supporting details

    International Centre for Settlement of Investment Disputes
  17. 26 May 2016Arbitration

    26 May 2016Arbitration

    Third Decision on the Payment Claim dated 26 May 2016

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals ordered Petrobangla to pay Niko USD 25,312,747 and BDT 139,988,337, plus the stated interest, immediately and without restrictions, and remained seized of the matter until final settlement.

    Supporting details

    2 participants
    Niko Resources (Bangladesh) Ltd.
    Bangladesh Oil Gas and Mineral Corporation
    International Centre for Settlement of Investment Disputes

    1 month and 23 days later · 54 days

  18. 19 July 2016Arbitration

    19 July 2016Arbitration

    Decision Pertaining to the Exclusivity of the Tribunal's Jurisdiction dated 19 July 2016

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals clarified that their subject-matter jurisdiction was exclusive for the identified issues, ordered BAPEX and Petrobangla to inform courts and authorities in Bangladesh of that jurisdiction and Bangladesh's related obligations, and directed them to take steps to terminate conflicting proceedings and orders.

    Supporting details

    International Centre for Settlement of Investment Disputes

    10 days later · 10 days

  19. 29 July 2016Arbitration

    29 July 2016Arbitration

    Procedural Order No. 14 dated 29 July 2016

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals issued procedural directions for the continuation of the arbitrations.

    Supporting details

    International Centre for Settlement of Investment Disputes

    2 months and 8 days later · 70 days

  20. 7 October 2016Arbitration

    7 October 2016Arbitration

    Procedural Order No. 15 dated 7 October 2016

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals issued procedural directions concerning the evidentiary and merits phases.

    Supporting details

    International Centre for Settlement of Investment Disputes

    1 month and 7 days later · 38 days

  21. 14 November 2016Arbitration

    14 November 2016Arbitration

    Procedural Order No. 16 dated 14 November 2016

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals issued procedural directions concerning the parties' submissions and evidence.

    Supporting details

    International Centre for Settlement of Investment Disputes

    1 month and 28 days later · 58 days

  22. 11 January 2017Arbitration

    11 January 2017Arbitration

    Procedural Order No. 17 dated 11 January 2017

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals issued procedural directions for the proceedings.

    Supporting details

    International Centre for Settlement of Investment Disputes

    2 months and 12 days later · 71 days

  23. 23 March 2017Arbitration

    23 March 2017Arbitration

    Procedural Order No. 18 dated 23 March 2017

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals issued procedural directions concerning the ongoing claims and evidence.

    Supporting details

    International Centre for Settlement of Investment Disputes

    23 days later · 23 days

  24. 15 April 2017Arbitration

    15 April 2017Arbitration

    Procedural Order No. 19 dated 15 April 2017

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals issued procedural directions for the next stage of the proceedings.

    Supporting details

    International Centre for Settlement of Investment Disputes

    1 month and 2 days later · 32 days

  25. 17 May 2017Arbitration

    17 May 2017Arbitration

    Procedural Order No. 20 dated 17 May 2017

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals issued procedural directions concerning the claims and hearing procedure.

    Supporting details

    International Centre for Settlement of Investment Disputes

    18 days later · 18 days

  26. 4 June 2017Arbitration

    4 June 2017Arbitration

    Procedural Order No. 21 dated 4 June 2017

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals issued procedural directions for the arbitration.

    Supporting details

    International Centre for Settlement of Investment Disputes

    1 month and 23 days later · 53 days

  27. 27 July 2017Arbitration

    27 July 2017Arbitration

    Procedural Order No. 22 dated 27 July 2017

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals issued procedural directions concerning the Compensation Declaration proceedings.

    Supporting details

    International Centre for Settlement of Investment Disputes

    1 year, 6 months and 29 days later · 578 days

  28. 25 February 2019Arbitration

    25 February 2019Arbitration

    Decision on the Corruption Claim dated 25 February 2019

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals denied the Respondents' requested declarations, rejected their jurisdictional objections, found that the JVA and GPSA were not procured by corruption and remained valid and binding, and reserved the blowout-liability, damages, and costs issues.

    Supporting details

    International Centre for Settlement of Investment Disputes

    2 months and 29 days later · 88 days

  29. 24 May 2019Arbitration

    24 May 2019Arbitration

    Procedural Order No. 23 dated 24 May 2019

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals issued procedural directions following the Decision on the Corruption Claim.

    Supporting details

    International Centre for Settlement of Investment Disputes

    9 months and 4 days later · 280 days

  30. 28 February 2020Arbitration

    28 February 2020Arbitration

    Decision on Liability dated 28 February 2020

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal determined that Niko's liability for the 2005 Chattak 2 blowout was governed by the JVA, that the first blowout resulted from Niko's breaches, that the second blowout did not result from a breach by Niko, and that Niko must compensate BAPEX for direct loss and damage from the first blowout. Further loss, damage, interest, and costs were reserved.

    Supporting details

    International Centre for Settlement of Investment Disputes

    1 month and 6 days later · 35 days

  31. 3 April 2020Arbitration

    3 April 2020Arbitration

    Procedural Order No. 24 dated 3 April 2020

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals issued procedural directions for the quantification and remaining phases of the proceedings.

    Supporting details

    International Centre for Settlement of Investment Disputes

    7 months and 12 days later · 226 days

  32. 15 November 2020Arbitration

    15 November 2020Arbitration

    Procedural Order No. 25 dated 15 November 2020

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals addressed procedural matters concerning document production, recoverable loss, and the remaining proceedings.

    Supporting details

    International Centre for Settlement of Investment Disputes

    17 days later · 17 days

  33. 2 December 2020Arbitration

    2 December 2020Arbitration

    Procedural Order No. 26 dated 2 December 2020

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals ordered a schedule for requests and responses concerning production of documents and reserved unresolved requests for decision with the Decision on Heads of Recoverable Loss.

    Supporting details

    International Centre for Settlement of Investment Disputes

    5 months and 16 days later · 167 days

  34. 18 May 2021Arbitration

    18 May 2021Arbitration

    Decision on Heads of Recoverable Loss dated 18 May 2021

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal identified recoverable heads of loss for BAPEX and the Government, denied non-recoverable heads and the request for advance payment, reserved specified issues and costs, and denied Niko's time-barred set-off claim.

    Supporting details

    3 participants
    Niko Resources (Bangladesh) Ltd.
    Bangladesh Petroleum Exploration & Production Company Limited
    Bangladesh Oil Gas and Mineral Corporation
    International Centre for Settlement of Investment Disputes

    2 months and 12 days later · 73 days

  35. 30 July 2021Arbitration

    30 July 2021Arbitration

    Procedural Order No. 27 dated 30 July 2021

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals confirmed an updated procedural timetable, including submissions and the November 2021 hearing on the quantity of lost gas.

    Supporting details

    International Centre for Settlement of Investment Disputes
  36. 30 July 2021Arbitration

    30 July 2021Arbitration

    Procedural Order No. 28 dated 30 July 2021

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals decided the Respondents' document-production requests, treating withdrawn requests as withdrawn and directing production or addressing the remaining requests as stated in the order.

    Supporting details

    International Centre for Settlement of Investment Disputes

    1 month and 25 days later · 56 days

  37. 24 September 2021Arbitration

    24 September 2021Arbitration

    Award dated 24 September 2021

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunal confirmed its previous decisions, affirmed jurisdiction over Niko's Payment Claim and exclusive subject-matter jurisdiction for payment for gas delivered under the GPSA, found that the GPSA was not procured by corruption, and ordered Petrobangla to pay Niko USD 25,312,747 and BDT 139,988,337 plus stated interest. It also awarded Niko CAD 1,737,592 and USD 102,483 for legal fees and expenses, allocated the stated Arbitration Costs, and ordered Petrobangla to pay Niko USD 423,775.58 for the cost advances. All other claims and requests relating to the Payment Claim were denied.

    Supporting details

    3 participants
    Niko Resources (Bangladesh) Ltd.
    Bangladesh Petroleum Exploration & Production Company Limited
    Bangladesh Oil Gas and Mineral Corporation
    International Centre for Settlement of Investment Disputes
  38. 24 September 2021Arbitration

    24 September 2021Arbitration

    Procedural Order No. 29 dated 24 September 2021

    International Centre for Settlement of Investment Disputes

    Decision summary
    The Tribunals closed the proceedings in ICSID Case No. ARB/10/18 in accordance with ICSID Arbitration Rule 38(1).

    Supporting details

    International Centre for Settlement of Investment Disputes

Matter record

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Niko Resources (Bangladesh) Ltd. v. Bangladesh Oil Gas and Mineral Corporation (Petrobangla), Bangladesh Petroleum Exploration and Production Company Limited (Bapex) (ICSID Case No. ARB/10/18) · Matter