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.