"Resume production (at Feni filed) within next 24 hours, or else, state-owned Bapex will take over the field and take legal action. Pressure tactics are not acceptable to the government," he told Niko officials at a meeting here.

On February 26, Niko Resources halted its gas production and supply from Feni field demanding immediate settlement of the gas price issue and payment to the company for gas purchase.

Petrobangla, the state-owned hydrocarbon corporation, viewed the Niko's action as a breach of terms of JVA (joint venture agreement).

When the government was showing such a strong stance against the Canadian company, Niko has been allowed to start exploration at Tengratila field, twice hit by blowouts, leaving the compensation issue unsettled.

Sources said the Prime Minister's Office (PMO) on Monday approved a plan of Niko allowing the company to start exploration at the Tengratila gas field.

Energy experts and the industry insiders found the government role as a good example of paradox and said with approving Niko's plan to start gas exploration at Tegratila, the government has finally backed out from its earlier stance for realising compensation from the Canadian operator.

Earlier, Madmudur Rahman had repeatedly told reporters that Niko would not be allowed to carry out any more exploration work until the compensation was realised from the company.

The government claimed compensation for burning out of 8.0 billion cubic feet (bcf) of natural gas from the Tengratila field and harming the environment by the two blowouts last year.

About approval of the Niko's plan, Mahmudur Rahman said he found nothing wrong with it. "The country needs huge gas at the moment. That's why Niko's plan has been approved," he told reporters.

He claimed that Niko has already accepted the compensation-claim. "But they have sought some clarifications...We'll give it soon," he added.

Meanwhile, Niko and Bapex officials sat at a meeting of the Joint Management Committee (JMC) at 6:00pm yesterday to discuss gas exploration at the Tengratila field and resumption of production at Feni gas field.

The meeting was in progress till the filing of this report as of 7:20pm.