Thomko Petro Chemical Blog

A follow up to our previous posting: Chad Tells Foreign Oil Companies to Leave

Chad must have a 60% stake in its oil output after receiving only "crumbs" from a foreign consortium running the industry according to President Idriss Deby. 

Such a stake would match the share held in the consortium by two companies, U.S. Chevron Corp. and Malaysia's Petronas, which Deby ordered to leave the country three days ago. He says the two are refusing to pay taxes owed totaling $486.2 million.

Chevron confirmed on Tuesday it had received notification from the Chadian government to discontinue operations because of the dispute over taxes. Petronas has said it is seeking clarification.

Some analysts view the expulsion order as a crude move by Deby, who has ruled Chad since 1990 after seizing power, to grab a controlling state stake in the consortium, which is led by Exxon Mobil and started pumping oil in Chad in 2003.

Addressing a rally, Deby said his landlocked African state, ranked among the poorest in the world, was not benefiting enough from its oil. The Chadian state currently has no direct stake but receives royalties and taxes.

"How can we fight poverty and develop our country with crumbs?" he told cheering supporters, some carrying banners reading "Chad's black gold is not for anyone else".

"Chad must enter into production at a reasonable level of 60%," Deby told the rally.

Source: Reuters