Dhaka, Aug 30 - Prime Minister Sheikh Hasina has sought 'explanation' from state-run Petrobangla for awarding a gas compressor station contract to American multinational Chevron last year, canceling an open tender.

Chevron received the contract although it had not replied to 16 technical questions raised by a consultant, Gas Transmission Company Limited (GTCL), The Daily Star said Sunday quoting sources in the Prime Minister's office (PMO).

It said the response of Petrobangla chairman M. Muktadir Ali, who was also the GTCL chairman, was 'smoky'.

While seeking the energy ministry's approval late last month for allowing installation of Chevron's compressor station over GTCL system, Muktadir Ali 'concealed the fact' that Chevron had not clarified on the 16 technical questions.

Petrobangla's move to award the deal to Chevron posed serious questions because the GTCL board headed by the Petrobangla chairman cancelled in May the GTCL tender to award Korean company Hyundai a contract to install three compressors under an Asian Development Bank (ADB) fund.