1. INTRODUCTION

1. The present case relates to marginal or abandoned gas fields in Bangladesh that the Government of the People’s Republic of Bangladesh (the Government) had decided to develop. Niko Resources (Bangladesh) Ltd. (Niko), the Claimant, proposed to carry out this development. Niko evaluated three such fields and concluded that two of them, the Chattak and the Feni fields, were sufficiently promising to continue with a work plan.

2. With the approval of the Government, Niko concluded on 16 October 2003 a Joint Venture Agreement (the JVA) with the Bangladesh Petroleum & Production Company, Limited (BAPEX), the Second Respondent.