Menu Close

Infractions: Chad nationalises all upstream assets, interests belonging to ExxonMobil

*The Chadian Energy and Hydrocarbons Ministry attributes the measure to discrepancies in final terms in sale of ExxonMobil operations to Savannah Energy in a $407million deal

*London-listed Savannah Energy kicks, plans to take ‘legal rights to contest Chad’s move’

Gbenga Kayode | ConsumerConnect

As part of further steps to protect its interests in the energy sector of the economy, Chad has nationalised all the assets and rights, including hydrocarbon permits and exploration and production authorisations, that belonged to a subsidiary of ExxonMobil in the West African country.

Chad’s Energy and Hydrocarbons Ministry announced this development in a statement issued Thursday, March 23, 2023.

It noted ExxonMobil had December 2022 that it had closed the sale of its operations in Chad and Cameroon to London-listed Savannah Energy in a $407million deal.

However, the Chadian Government stated it later discovered discrepancies, and contested the said agreement, saying the final terms were different from what had been presented to the International Oil Company (IOC).

The government warned then, that it might ask courts to block Savannah’s purchase of Exxon’s assets in the country and take further steps to protect its citizens’ interests.

Exxon’s assets 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), agency report said.

It also included Exxon’s interest in the over 1,000km (621-mile) Chad-Cameroon pipeline from the landlocked country to the Atlantic Gulf of Guinea coast through which its crude is exported overseas.

ExxonMobil was not immediately available for comment on the development, Al Jazeera report stated.

Savannah Energy kicks

In reaction to the Chadian Government’s step to nationalise ExxonMobil assets, Savannah Friday, March 24 said it was planning to pursue all its legal rights to contest Chad’s move a day earlier to nationalise its upstream assets in the African country.

The energy firm in a statement said: “The actions of the Republic of Chad are in direct breach of the Conventions to which SCI and the Republic of Chad are, amongst others, party.

“The Conventions are subject to the jurisdiction of an ICC tribunal, seated in Paris and the Company intends to pursue all of its legal rights.”

Chad, which has the 10th largest reserves in Africa, exports 90 percent of its oil, according to report.

Kindly Share This Story



Kindly share this story