• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 3 hours Oil prices going Up? NO!
  • 13 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 12 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 18 hours Oil prices going down
  • 21 hours Could oil demand collapse rapidly? Yup, sure could.
  • 2 days Could Venezuela become a net oil importer?
  • 11 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 2 days Oil Buyers Club
  • 18 hours Saudi Arabia turns to solar
  • 5 hours Kenya Eyes 200+ Oil Wells
  • 2 days Gazprom Exports to EU Hit Record
  • 5 hours Are Electric Vehicles Really Better For The Environment?
  • 20 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 1 day Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 19 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 10 hours OPEC soap opera daily update
Tesla Closing Down Solar Capacity

Tesla Closing Down Solar Capacity

Tesla is closing down solar…

U.S. Overtakes Saudi Arabia In Recoverable Oil Reserves

U.S. Overtakes Saudi Arabia In Recoverable Oil Reserves

The United States has overtaken…

Exxon Negotiating With Chad Over Court-Imposed $74B Fine

Rig

Exxon Mobil (NYSE:XOM) is in talks with Chad’s government regarding a huge US$74-billion fine it was ordered to pay last month by a Chad court for failing to meet tax obligations and withholding royalties, a lawyer for the company told Bloomberg in an interview on Tuesday.

Last month, the High Court of Chad ruled that an Exxon-led consortium pay the sum, which is much higher than the country’s GDP of US$10.8 billion last year.

Experts say the chance that Chad may collect what it believes are its dues is beyond remote.

Exxon has appealed the court ruling, but the appeals court hearing has been postponed because talks are being held, Bloomberg quoted Exxon lawyer Thomas Dingamgoto as saying.

According to the Chad government’s general director of legal affairs, Fang Langou Operal, the fine imposed on Exxon is compatible with a customs code of the Central African Economic and Monetary Community (CEMAC), of which Chad is a member.

Chad’s contention is that the Exxon-led consortium should pay 2 percent in royalties on crude exports, while Exxon has said it had a convention signed with the government to pay only 0.2 percent in royalties. Government official Operal, however, told Bloomberg today that the convention has not been either ratified by parliament or signed by the head of state.

Exxon 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.

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.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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