Chad has nationalised all the oil and gas assets, including hydrocarbon permits, that were owned by Exxon Mobil’s subsidiary, reported Reuters citing Central African nation’s energy and hydrocarbons ministry.
In December 2022, Exxon Mobil had closed the sale of its assets in Chad and Cameroon to Savannah Energy for $407m.
The transaction covered Exxon’s 40% stake in the Doba Oil Project in southern Chad and a 40% indirect controlling stake in the Chad-Cameroon export transportation system.
The Doba Oil Project involves seven producing oilfields including Miandoum, Bolobo, Kome, Moundouli, Maikeri, Nya, and Timbre.
The Doba Oil Project involves seven producing oilfields including Miandoum, Bolobo, Kome, Moundouli, Maikeri, Nya, and Timbre. The Chad-Cameroon export transportation system comprises a 1,081km pipeline and the Kome Kribi 1 floating storage and offloading facility, offshore Cameroon.
The sale was part of Exxon’s plans to exit Africa due to declining crude oil production and to shift its focus to more profitable operations in the Americas and its LNG project in Mozambique.
However, the agreement was opposed by the government of Chad, citing that the final terms of the deal were different from what presented by Exxon Mobil.
The ministry was quoted by the news agency as saying earlier: “Doba’s oil operations and the Chad/Cameroon pipeline are vital and sovereign assets for Chad; they cannot be endangered by an irregular operation.
“Therefore, the Republic of Chad formally contests the operation between Exxon and Savannah.”
On this ground, the government warned that it may urge courts to block the sale of Exxon’s assets in the country to Savannah and take additional steps to protect its interests.