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Consultant Pours Oil on Troubled Waters - International Law Office

International Law Office

Energy & Natural Resources - Bangladesh

Consultant Pours Oil on Troubled Waters

June 24 2002

An international consultant recently provided his eagerly awaited opinion on the continuing dispute between Petrobangla and Shell Oil.

Since 1998 Petrobangla has deducted 8% from the monthly bill that Shell-Cairn sends it, citing Shell-Cairn's use of eight kilometres of the local gas pipeline as its reason. Shell-Cairn has argued that this is an exorbitant and unacceptable fee, which has amounted to $38 million in total.

The consultant is reported to have recommended that Petrobangla pay Shell-Cairn a proportion of the claimed $38 million.

The consultant also gave his opinion on another of Shell Oil's allegations, namely that Petrobangla has violated an agreement by failing to purchasing 160 million cubic feet of gas per day.

So far, both Shell and Petrobangla officials have declined to comment on the consultant's recommendation and are seeking further legal advice.

For further information on this topic please contact Azarul Haque at Legal Remedy by telephone (+880 2 955 0645) or by fax (+880 2 955 0645) or by email (legal@e-fsbd.net).

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