# Feni Gas Field

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Natural gas field in Bangladesh

Feni Gas Field Country Bangladesh Region Feni Offshore/onshore onshore Operator Niko Field history Discovery 1981

**Feni Gas Field** ([Bengali](/source/Bengali_language): ফেনী গ্যাসক্ষেত্র) is a natural gas field at [Feni](/source/Feni_District), Bangladesh.[1] It is a subsidiary of a Canadian multinational company, [Niko Resources](/source/Niko_Resources).[2]

## Location

Feni gas field is located at Dhliya union of [Sadar upazila](/source/Feni_Sadar_Upazila) of [Feni district](/source/Feni_district) of [Chittagong Division](/source/Chittagong_Division).[1]

## Background

The Feni Gas Field, located in eastern [Bangladesh](/source/Bangladesh), was discovered in 1981 by [Petrobangla](/source/Petrobangla)'s [Bangladesh Gas Fields Company Limited](/source/Bangladesh_Gas_Fields_Company_Limited) (BGFCL).[3] After producing approximately 40 billion cubic feet (BCF) of gas, the field was abandoned in 1998 due to declining output. In October 2003, Canadian company [Niko Resources](/source/Niko_Resources) entered into a Joint Venture Agreement (JVA) with the [Bangladesh Petroleum Exploration and Production Company Limited](/source/Bangladesh_Petroleum_Exploration_and_Production_Company_Limited) (BAPEX) to develop the marginal Feni and Chhatak (also known as Tengratila) gas fields. Under this agreement, Niko invested $15 million in the Feni project, aiming to produce between 10 and 15 million cubic feet of gas per day.[4][5]

Gas production from the Feni field commenced in November 2004. However, a formal Gas Purchase and Sale Agreement (GPSA) with Petrobangla, the state-owned oil and gas corporation, was not finalized until 27 December 2006, due to disputes over gas pricing.[6]

## 2004 blowout and fire

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The **Feni Gasfield Incident** was a major industrial accident that occurred on 27 June 2004 at the Feni Gas Field, located in Sharshadi, [Feni District](/source/Feni_District), Bangladesh. The incident involved a blowout and subsequent fire at a gas well operated under contract by a foreign exploration company. The explosion caused extensive damage to the environment, property, and Bangladesh's natural gas resources.

### Incident

The blowout on 27 June 2004 occurred during drilling operations at the gas field, and led to a significant fire. The blowout was attributed to operational failures, including inadequate casing design and poor drilling practices. The fire caused extensive damage to the drilling site and surrounding areas, raising concerns about environmental safety and operational standards.[7]

### Damage and impact

The blowout and subsequent fire resulted in the loss of valuable natural gas resources and inflicted environmental damage on the surrounding area. Nearby structures collapsed due to the explosion, and agricultural lands were affected by the fire and gas emissions. The incident highlighted the risks associated with inadequate safety measures in gas exploration and production activities.

At least 12 people, including two officials of [Bakhrabad Gas Distribution Company Limited](/source/Bakhrabad_Gas_Distribution_Company_Limited) (BGDCL), sustained burn injuries as the gas line of a CNG filling station in [Chhagalnaiya Upazila](/source/Chhagalnaiya_Upazila) exploded. The incident took place at Majumder Filling Station in the afternoon when the BGDCL officials were repairing the gas pipeline of the filling station beside [Dhaka-Chittagong highway](/source/N1_(Bangladesh)). Of them, 10 were admitted to [Dhaka Medical College and Hospital](/source/Dhaka_Medical_College_and_Hospital) while the rest to Feni Sadar Hospital.[8]

### Investigation and response

Following the incident, the [government of Bangladesh](/source/Government_of_Bangladesh) formed an inquiry committee to investigate the causes of the blowout. The committee's findings pointed to Niko Resources' operational negligence and lack of proper safety protocols as primary factors leading to the disaster. In response, legal actions were initiated against Niko, including claims for compensation amounting to Tk 746 crore (approximately $110 million) for damages caused by the blowout.[9][7]

Additionally, the [Bangladesh Environmental Lawyers Association](/source/Bangladesh_Environmental_Lawyers_Association) (BELA) filed a petition in the Supreme Court seeking a declaration that the JVA was invalid and an injunction restraining payments to Niko. The court issued an injunction against Petrobangla, preventing payments to Niko until the compensation issue was resolved.[6]

A [High Court](/source/High_Court_Division%2C_Supreme_Court_of_Bangladesh) order also suspended drilling of any development well in the Feni Gas Field. Niko-Bapex was initially producing 20 million cubic feet of gas a day in November 2004. The production has now come down to 1.5 million cubic feet of gas a day. [Petrobangla](/source/Petrobangla) signed the gas sales agreement (GSA) with Niko in December 2006. The price of Feni's gas was fixed at $1.75 per thousand cubic metre following prolonged disagreements between Petrobangla and Niko.[10][11]

### Impact after the incident

The Feni Gas Field Incident had long-term implications for Bangladesh's energy sector. It underscored the need for stringent safety standards and regulatory oversight in gas exploration and production. The incident also led to increased scrutiny of foreign investment in the country's natural resources.[6]

In subsequent years, Niko Resources faced multiple legal challenges, including international arbitration cases. In 2020, the International Centre for Settlement of Investment Disputes (ICSID) held Niko liable for the blowout at the Chhatak gas field and ordered the company to pay compensation to Bangladesh for the loss and damage caused by the blowout, including gas loss and environmental damage.[5]

## See also

- [List of natural gas fields in Bangladesh](/source/List_of_natural_gas_fields_in_Bangladesh)

- [Bangladesh Gas Fields Company Limited](/source/Bangladesh_Gas_Fields_Company_Limited)

- [Gas Transmission Company Limited](/source/Gas_Transmission_Company_Limited)

## References

1. ^ [***a***](#cite_ref-feniF_1-0) [***b***](#cite_ref-feniF_1-1) [এক নজরে ফেনী](https://feni.gov.bd/bn/site/page/euCA-%E0%A6%8F%E0%A6%95-%E0%A6%A8%E0%A6%9C%E0%A6%B0%E0%A7%87-%E0%A6%AB%E0%A7%87%E0%A6%A8%E0%A7%80) [Feni at a glance]. *Feni District* (in Bengali). Retrieved 18 June 2025.

1. **[^](#cite_ref-dailysangram_2-0)** [ফেনী গ্যাস ক্ষেত্র নিয়ে নাইকোর মামলায় হেরে গেছে বাংলাদেশ](https://web.archive.org/web/20190808183738/http://www.dailysangram.com/post/237909-%25E0%25A6%25AB%25E0%25A7%2587%25E0%25A6%25A8%25E0%25A7%2580-%25E0%25A6%2597%25E0%25A7%258D%25E0%25A6%25AF%25E0%25A6%25BE%25E0%25A6%25B8-%25E0%25A6%2595%25E0%25A7%258D%25E0%25A6%25B7%25E0%25A7%2587%25E0%25A6%25A4%25E0%25A7%258D%25E0%25A6%25B0-%25E0%25A6%25A8%25E0%25A6%25BF%25E0%25A6%25AF%25E0%25A6%25BC%25E0%25A7%2587-%25E0%25A6%25A8%25E0%25A6%25BE%25E0%25A6%2587%25E0%25A6%2595%25E0%25A7%258B%25E0%25A6%25B0%25C2%25A0%25E0%25A6%25AE%25E0%25A6%25BE%25E0%25A6%25AE%25E0%25A6%25B2%25E0%25A6%25BE%25E0%25A6%25AF%25E0%25A6%25BC-%25E0%25A6%25B9%25E0%25A7%2587%25E0%25A6%25B0%25E0%25A7%2587-%25E0%25A6%2597%25E0%25A7%2587%25E0%25A6%259B%25E0%25A7%2587-%25E0%25A6%25AC%25E0%25A6%25BE%25E0%25A6%2582%25E0%25A6%25B2%25E0%25A6%25BE%25E0%25A6%25A6%25E0%25A7%2587%25E0%25A6%25B6). *The Daily Sangram* (in Bengali). 8 Jun 2016. Archived from [the original](http://www.dailysangram.com/post/237909-%E0%A6%AB%E0%A7%87%E0%A6%A8%E0%A7%80-%E0%A6%97%E0%A7%8D%E0%A6%AF%E0%A6%BE%E0%A6%B8-%E0%A6%95%E0%A7%8D%E0%A6%B7%E0%A7%87%E0%A6%A4%E0%A7%8D%E0%A6%B0-%E0%A6%A8%E0%A6%BF%E0%A6%AF%E0%A6%BC%E0%A7%87-%E0%A6%A8%E0%A6%BE%E0%A6%87%E0%A6%95%E0%A7%8B%E0%A6%B0%C2%A0%E0%A6%AE%E0%A6%BE%E0%A6%AE%E0%A6%B2%E0%A6%BE%E0%A6%AF%E0%A6%BC-%E0%A6%B9%E0%A7%87%E0%A6%B0%E0%A7%87-%E0%A6%97%E0%A7%87%E0%A6%9B%E0%A7%87-%E0%A6%AC%E0%A6%BE%E0%A6%82%E0%A6%B2%E0%A6%BE%E0%A6%A6%E0%A7%87%E0%A6%B6) on 8 August 2019. Retrieved 6 Aug 2019.

1. **[^](#cite_ref-banglapedia_3-0)** [Sirajul Islam](/source/Sirajul_Islam), ed. (Jan 2003). "Hydrocarbon Exploration". [*Banglapedia*](http://en.banglapedia.org/index.php?title=Hydrocarbon_Exploration) (in Bengali). [Dhaka](/source/Dhaka): [Asiatic Society of Bangladesh](/source/Asiatic_Society_of_Bangladesh). [ISBN](/source/ISBN_(identifier)) [984-32-0576-6](https://en.wikipedia.org/wiki/Special:BookSources/984-32-0576-6). Retrieved 21 Aug 2019.

1. **[^](#cite_ref-4)** ["Niko Resources Finds Gas in Bangladesh"](https://www.rigzone.com/news/niko_resources_finds_gas_in_bangladesh-07-may-2004-12957-article). *www.rigzone.com*. Retrieved 6 May 2025.

1. ^ [***a***](#cite_ref-Fenifire_5-0) [***b***](#cite_ref-Fenifire_5-1) ["Canadian firm Niko ruled liable for Chhatak gas field blowout"](https://www.tbsnews.net/bangladesh/energy/canadian-company-niko-liable-chhatak-gas-field-blowout-76624). *The Business Standard*. 3 May 2020. Retrieved 6 May 2025.

1. ^ [***a***](#cite_ref-feni_6-0) [***b***](#cite_ref-feni_6-1) [***c***](#cite_ref-feni_6-2) ["International Centre for Settlement of Investment Disputes Washington, D.C."](https://icsidfiles.worldbank.org/icsid/icsidblobs/OnlineAwards/C3865/DC5039_en.pdf) (PDF). *icsidfiles.worldbank.org*.

1. ^ [***a***](#cite_ref-fire_7-0) [***b***](#cite_ref-fire_7-1) ["Niko sued for Tk 746cr over Tengratilla loss"](https://www.thedailystar.net/news-detail-41653). *The Daily Star*. Retrieved 6 May 2025.

1. **[^](#cite_ref-8)** ["Gas line explosion leaves 12 injured in Feni"](https://www.thedailystar.net/gas-line-explosion-leaves-12-injured-in-feni-29852). *The Daily Star*. Retrieved 6 May 2025.

1. **[^](#cite_ref-9)** ["Niko stops supplying gas from Feni field"](https://today.thefinancialexpress.com.bd/print/niko-stops-supplying-gas-from-feni-field). *The Financial Express*. Dhaka. Retrieved 6 May 2025.

1. **[^](#cite_ref-fireFeni_10-0)** ["Feni gas field reels from writ petition"](https://www.thedailystar.net/news-detail-80780). *thedailystar*. Retrieved 6 May 2025.

1. **[^](#cite_ref-11)** ["Petrobangla files rejoinder against Niko at ICSID"](https://www.dhakatribune.com/bangladesh/bangladesh-others/83591/petrobangla-files-rejoinder-against-niko-at-icsid). *Dhaka Tribune*. Retrieved 6 May 2025.

v t e Natural gas fields in Bangladesh Bakhrabad Gas Field Bangura Gas Field Beanibazar Gas Field Begumganj Gas Field Bhola North-1 Gas Field Bibiana Gas Field Chhatak Gas Field Fenchuganj Gas Field Feni Gas Field Habiganj Gas Field Haripur Gas Field Lalmai Gas Field Jalalabad Gas Field Kailashtilla Gas Field Kamta Gas Field Kutubdia Gas Field Meghna Gas Field Moulvibazar Gas Field Narsingdi Gas Field Pabna Gas Field Rashidpur Gas Field Semutang Gas Field Shahbazpur Gas Field Srikail Gas Field Sangu Gas Field Salda Gas Field Sundalpur Gas Field Sunetra Gas Field Titas Gas Field

v t e Feni District Capital: Feni Upazilas Chhagalnaiya Daganbhuiyan Feni Sadar Fulgazi Parshuram Sonagazi Constituencies Feni-1 Feni-2 Feni-3 Attractions and sites Feni Gas Field Feni SC Khondoler misti Shaheed Salam Stadium History Shamsher Gazi Withdrawal of Feni River Water Murder of Nusrat Jahan Rafi Inhabited areas Chhagalnaiya Daganbhuiyan Matubhuiyan Parshuram Ramnagar Sonagazi Educational institutions Atatürk Government Model High School Feni Computer Institute Feni Girls' Cadet College Feni Government College Feni Government Pilot High School Feni Polytechnic Institute Feni University Transport Chattala Express Feni River Meghna Express Mohanagar Provati/Godhuli Express Muhuri River N1 Sagarika Express

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Adapted from the Wikipedia article [Feni Gas Field](https://en.wikipedia.org/wiki/Feni_Gas_Field) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Feni_Gas_Field?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.