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Lawachhara still bears the scars of Magurchhara blast

14 June 2009, 18:00 PM

NATIONAL

Our Correspondent, Moulvibazar

A scene of fire spiralling out from Magurchhara Gas Field in Moulvibazar after one of its gas wells exploded up on June 14, 1997. FILE PHOTO: STAR

Twelve years after the explosion at Magurchhara Gas Field on June 14 in 1997, nearby Lawachhara Reserve Forest is far from regaining its biodiversity while foreign operators of the gas field have paid a very small fraction of the money demanded as compensation for the huge losses. Following the incident, the then operator of the gas field, US company Occidental transferred its business including assets and liabilities to another US company Unocal. In 2005, the Unocal transferred its business to another company the Chevron, which is now liable for the losses of Magurchhara Gas Field blow-up. As per a Production Sharing Contract (PSC) signed between the Occidental and the Petrobangla in January 1995 to search for minerals, the Occidental started work at Block No 14 near Lawachhara Reserve Forest in Kamalganj upazila of Moulvibazar district. The Occidental allegedly gave subcontract of well No 1 under Magurchhara Gas Field to German company Duetag in violation of the terms and conditions of PSC, and the well exploded on June 14, 1997 when the Duetag was working there. Flame from the well rose to 500 feet high and the fire caused serious damage to a major portion of adjacent Lawachhara Reserve Forest and Magurchhara paan punji (betel leaf plantation). Lawachhara Reserve Forest lost several species of flora and fauna including shrubs, worms, insects, small animals and birds as the fire badly affected biodiversity of the forest. An investigation committee formed by the then government submitted a report saying that losses of the reserve forest due to the explosion was estimated at Tk 9,858 crore 31 lakh while 29 tea gardens suffered losses of Tk 46 crore 6 lakh 84 thousand. The report also estimated losses due to damage of railway track, electricity supply lines, betel leaf plants. However, the Occidental and the Unocal authorities termed Bangladesh government's estimate of losses as 'much higher' than the actual. The Petrobangla had calculated the loss of gas burnt due to the blow-up to be Tk 3,900 crore but the Unocal had ignored the demand of compensation for it. The Unocal paid Tk 38 crore as compensation to different loser sectors. The external affairs officer of the Chevron, Naser Ahmed told the journalists of Moulvibazar, “The Unocal had a survey conducted by a 'third party' to estimate losses. The survey report had been submitted to the ministry concerned. Now the ministry has to settle the dispute over compensation.”