November 18, 2017

Chad extends ExxonMobil’s operating licence until 2050

US energy giant, ExxonMobil, will operate in the Doba basin until 2050, following an agreement the group has reached with the government of Chad, according to newswire, AFP.

As a condition for the licence, ExxonMobil is to invest in polymer injection technology to increase oil extraction, Minister Minister, Bechir Madet, said.

A tax dispute between the government of Chad and a consortium led by Esso, a unit of ExxonMobil, had stalled discussion the two parties.  The consortium includes Malaysia’s Petronas and Chad’s national oil company.

In October 2016, a Chadian court had imposed heavy fines on the consortium over unpaid taxes, claiming $75bn.

Like other oil-producing countries in Africa, Chad is feeling the burden of putting one eggs in one proverbial basket by being too dependent on oil revenue.  In a desperate measure, the government is seeking sustainable avenues of diversifying its economy.

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