Chad has nationalized Exxon Mobil assets. The oil company divested in Chad around December of 2022. The current policy also applies to exploration and production authorizations. Hydrocarbon permits will are also subject to nationalization. The change in policy came from the reaction to the Savannah Energy deal. Chad felt Exxon Mobil was not upholding previous obligations under their agreements. Courts may get involved to prevent Savannah Energy from making purchases of assets in Chad. This has also effected Cameroon, which has worked with Chad in the energy sector. A Chad-Cameroon pipeline has been planned for construction. The Doba oil project was designed to make Chad produce larger amounts of oil. It contains seven oil fields and produces 28,000 barrel per day. The government wants a better deal, which benefits the economy. Savannah Energy stated it will take the assets under the Exxon Agreement. Savannah Energy is a British company active in Niger and Nigeria. The fear from the company is that other African nations will nationalize assets. According to their statement it intends to use the ICC to pursue legal rights. If Chad can successfully fight the legal claims, it may get back control of its own economic policy. Oil can generate much wealth. If the wealth is not applied to development or increasing the standard of living it means nothing. Exploitation by foreign corporations of Africa's natural resources remains common. Nationalization might be a method of preventing such an occurrence.
No comments:
Post a Comment