Dhaka, Aug 24 (IANS): A Bangladesh court on Thursday declared a Canadian oil explorer's deals with two state-owned enterprises as illegal.

The High Court division bench of Justice Bhabani Prasad Singha and Justice Mustafa Zaman Islam delivered the verdict, reports Xinhua news agency.

The order was passed on a petition filed by a lawyer for the state-run Bangladesh Petroleum Exploration Company (BAPEX) and Bangladesh Oil, Gas and Mineral Corporation, or Petrobangla.

Canadian company Niko Resources signed the deals -- joint venture agreement and gas purchase and sales agreement (GPSA) -- with BAPEX and Petrobangla in 2003 and 2006, respectively.

A total of 11 people, including former Prime Minister Khaleda Zia, were charged in 2008 for allegedly causing a loss of 137 billion Bangladeshi taka ($1 billion) to the state exchequer by awarding the gas exploration job to Niko. 

Bangladesh's Anti-Corruption Commission filed the Niko graft case in 2007 after Zia was arrested.