• 2 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 4 days Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 3 hours Clean Energy Is Canceling Gas Plants
  • 17 hours GAME CHANGER: MIT Startup Commonwealth Fusion says Commercial Product by early 2030s ! THIS CHANGES EVERYTHING..
  • 6 hours Rethinking election outcomes for oil.
  • 7 hours The Leslie Stahl/60 Minutes Interview with President Trump
  • 2 days America's Frontline Doctors - Safely Start Living Again!
  • 16 hours OP article : "Trump blasts Biden Fracking Plan . . . "
  • 4 hours Australia’s Commodities Heartland Set for Major Hydrogen Plant
  • 8 hours Video Evidence that the CCP controls Joe Biden
  • 19 hours Biden denies fracking ban
  • 2 days Is the coal industry on the way out?
  • 2 days "COVID Kills Another Oil Rally" by Tom Kool 10/16/2020
  • 3 days Conoco Pledges ‘Net-Zero’ Emissions in Break With U.S. Rivals
U.S. Renewable Energy Consumption Hits Record

U.S. Renewable Energy Consumption Hits Record

Renewable energy consumption in the…

Three Energy Stocks To Watch On Election Day

Three Energy Stocks To Watch On Election Day

Investing in energy stocks ahead…

Chad Slaps Exxon With Fine 5 Times Its GDP

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