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Chad Nationalizes All Assets And Rights Of Exxon Mobil

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Chad has nationalized all the assets and rights, including hydrocarbon permits and exploration and production authorizations, that belonged to a subsidiary of Exxon Mobil.

 

This move came after the Chadian government contested Exxon’s sale of its operations in Chad and Cameroon to London-listed Savannah Energy in a $407m deal, citing that the final terms were different from what had been presented to it.

 

Exxon Mobil’s assets in Chad included a 40 percent stake in Chad’s Doba oil project, which comprises seven producing oilfields with a combined output of 28,000 barrels per day (bpd), and its interest in the more than 1,000km (621-mile) Chad-Cameroon pipeline from the landlocked nation to the Atlantic Gulf of Guinea coast through which its crude is exported.

Savannah Energy has stated that it plans to pursue all its legal rights to contest Chad’s move to nationalize its upstream assets in the African country, citing that the actions of the Republic of Chad are in direct breach of the conventions to which the company and the Republic of Chad are party. Savannah Energy has also stated that it intends to pursue all of its legal rights, including the jurisdiction of an ICC tribunal seated in Paris.

Chad, which has the 10th largest reserves in Africa, exports 90 percent of its oil. Exxon Mobil has not yet commented on the recent development.

Victoria Philip is not only a Journalist but also a talented fiction writer. You can reach her on this numbers, 08135853903, 09112869878

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