Chad settles tax dispute with foreign oil firms

2017-06-11 10:12


Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

N'Djamena - Chad, one of the African countries hit hardest by the drop in oil prices, announced on Saturday that it had reached an accord with a group of foreign energy companies ending a tax dispute.

The deal, signed on Friday by the government and a consortium led by Esso, a unit of US energy giant ExxonMobil, extends the group's operating licence in the Doba basin until 2050.

It also calls for the development of polymer injection technology to increase oil extraction, Chad's oil minister, Bechir Madet, told AFP.

In October a Chadian court had imposed heavy fines on the consortium over unpaid taxes, claiming $75bn.

No financial details of the agreement were disclosed, though Madet denied that the consortium would pay the government $200m.

"We are very happy with these agreements which will allow us to relaunch the consortium's operations in Chad," said Christian Lenoble, a spokespersonn for the group.

The consortium also includes Malaysia's Petronas, and once included Chevron of the US, which has since been replaced in the group by Chad's national oil company.

As one of Africa's poorest countries, Chad relies heavily on revenue from oil sales, though President Idriss Deby has pledged to diversity the economy to protect it from sudden price drops.

"We are pursuing economic diversification," Madet said, adding: "Producing more oil creates more wealth and jobs. That is going to help our economy."

Read more on:    chad  |  west africa

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.