• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 7 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 14 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 3 hours Is $60/Bbl WTI still considered a break even for Shale Oil
  • 3 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 42 mins Theresa May to Step Down
  • 8 hours Old - New Kim: Nuclear Negotiations With U. S. Will Never Resume Unless Washington Changes Its Position
  • 4 hours IMO 2020 could create fierce competition for scarce water resources
  • 7 hours India After Elections: Economy And Hindu Are The First Modi’s Challenges
  • 4 hours IMO2020 To scrub or not to scrub
  • 9 hours Total nonsense in climate debate
  • 4 hours Devastating Sanctions: Iran and Venezuela hurting
  • 13 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 6 hours Apple Boycott in China
  • 2 hours Level-Headed Analysis of the Future of U.S. Shale Oil Industry
  • 6 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
The Silence Before The Storm In Oil Markets

The Silence Before The Storm In Oil Markets

Current market volatility may seem…

Oil Markets In Limbo After OPEC+ Meeting

Oil Markets In Limbo After OPEC+ Meeting

Oil markets remain uncertain as…

Chad Slaps Exxon With Fine 5 Times Its GDP

Chad oil

The High Court of Chad has ruled that an Exxon-led consortium must pay a fine of US$75 billion for failing to meet its tax obligations and withholding royalties worth US$819 million.

The sum is a lot higher than Chad’s GDP, which was US$10.8 billion last year and is estimated to reach US$13 billion this year. The chance of the country collecting what it believes are its dues is beyond remote.

According to one professor of international law, no court outside Chad will agree to uphold the original ruling, and the worst that could happen to Exxon would be that it would have to drop its Chad operations and leave. Another lawyer, who spoke to Bloomberg, said that it is unlikely that the Chadian government expects to collect the sum. Rather, Robert Amsterdam said, the court’s ruling signals that the contract between N’Djamena and the oil companies is about to be revised.

The company entered the central African country in 2001, and two years later struck oil. The current daily production rate is about 120,000 barrels, much of which is being exported via a pipeline through neighboring Cameroon to the West African coast. Initially, Chevron was also a partner in the consortium, but it sold its 25-percent interest for US$1.3 billion in 2014, shortly before the huge price slide in oil prices began in July.

Earlier this year, Exxon and its partners in the consortium, including Malaysian Petronas, filed a case at the International Court of Arbitration in Paris against the Chadian government, claiming their contract for oilfield development included an exemption from export taxes. N’Djamena, however, seems to be of a different opinion, hence the home court’s ruling.

An Exxon spokesman said, “We disagree with the Chadian court’s ruling and are evaluating next steps. This dispute relates to disagreement over commitments made by the government to the consortium, not the government’s ability to impose taxes.”

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Barrack Obama on October 07 2016 said:
    Bill Gates with his net worth of $81.7 could buy the country out 8 times - Bill, can you float Chad a bone?

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News