Dhaka: The High Court on Thursday declared illegal the two deals Canadian company Niko signed with Bangladesh Petroleum Exploration and Production Company Ltd (Bapex) and Petrobangla.

The HC bench of Justice Naima Haider and Justice Abu Taher Md. Saifur Rahman pronounced the verdict after hearing on a petition.

The court also asked the government to seize all assets of Niko in Bangladesh.

The court also blocked all payments to Niko until compensation for Sunamganj’s Tengratil gas well explosion is not paid.

Barrister Tanjib ul Alam moved for the writ petitioner while Attorney General Mahbubey Alam stood for the state. Barrister Moin Gani represented Bapex and Petrobangla in the hearing Energy expert professor Shamsul Alam filed a writ petition in 2016 challenging the legality of the deals of Niko with the two state-run companies.

Later on May 9, 2016 the High Court issued a rule asking the government to explain within four weeks why Niko’s joint venture agreement (JVA) with Bapexand Niko would not be declared illegal.

The HC also issued a stay order on the operation of the JVA and stayed any payments to Niko Bangladesh. Moin Gani said Niko signed a deal with Bapex in 2003 while it sign another deal with Petrobangla in 2006.