The energy and hydrocarbons ministry of Chad announced on Thursday that the country had nationalized all the property and rights, including hydrocarbon permits and exploration and production authorizations, that belonged to an Exxon Mobil subsidiary.
Exxon Mobil announced in December 2022 that it had reached a $407 million agreement to sell its operations in Chad and Cameroon to the London-listed Savannah Energy. However, the Chadian government contested the deal, claiming that the final terms were different from those that had been presented to it.
At the time, the government issued a warning, threatening to take further action to safeguard its interests and urge the courts to halt Savannah’s purchase of Exxon’s assets in the nation.
One of Exxon’s holdings was a 40 percent share in the Doba oil project in Chad, which consists of seven operating oilfields with a total daily production of 28,000 barrels (bpd).
Also, it covered Exxon’s stake in the over 1,000 km (621 mi) Chad-Cameroon pipeline, which transports crude from the landlocked country to the shore of the Atlantic Gulf of Guinea.
Exxon Mobil could not be reached for comment right away.
Nonetheless, Savannah announced on Friday that it would exercise all of its legal options to challenge Chad’s decision to nationalize its upstream assets in the African nation a day earlier.
“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,” its statement read.
“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 exports 90% of its oil and has the 10th largest reserves in Africa.
