Chad says it has nationalized all assets owned by Exxon Mobil

Reuters ^ | March 23, 2023 | Bate Felix

[Ultra Sonic 007]

N'DJAMENA, March 23 (Reuters) - Chad has nationalized all the assets and rights including hydrocarbon permits and exploration and production authorisations that belonged to a subsidiary of Exxon Mobil (XOM.N), the Central African nation's energy and hydrocarbons ministry said in a statement on Thursday.

Exxon Mobil said in December that it had closed the sale of its operations Chad and Cameroon to London-listed Savannah Energy (SAVES.L) in a $407 million deal, but the Chadian government contested the agreement, saying the final terms were different from what Exxon Mobil had presented.

It warned that it may ask courts to block Savannah's purchase of Exxon's assets in the country and take further steps to protect its interests.

Exxon's assets included a 40% stake in Chad's Doba oil project, which comprises seven producing oilfields with combined output of 28,000 barrels per day (bpd).

It also included Exxon's interest in the more than 1,000 kilometre (621 mile) Chad/Cameroon pipeline from the landlocked nation to the Atlantic Gulf of Guinea coast through which its crude is exported.

[Ultra Sonic 007]

ExxonMobil: from having its CEO (Rex Tillerson) as Secretary of State to getting an African subsidiary's assets nationalized in less than seven years.

Another geopolitical L for the Biden Administration.

[Lockbox]

How much for your signature Mister energy and hydrocarbons minister? How much?

[dfwgator]

[E. Pluribus Unum]

Kill that golden goose!

[Steely Tom]

Chad says it has nationalized all assets owned by Exxon Mobil

Becky will get very hot over this.

[House Atreides]

Lots and lots of state actors will be flowing the lead of “Gibs-me-dat” Zelensky.

“Gibs-me-dat bunch of assets” is an increasingly popular activity around the world. Going after OTHER PEOPLE’S MONEY can be very contagious when it becomes an ALLOWABLE process.

[nwrep]

[fella]

Can sale to Russia or the ChiComs be in the works?

[chrisser]

Looks like it’s time for another “color revolution”. Better get the See Eye Aye on the phone.

[volunbeer]

I can understand the illegality of such a move and it’s a repeating story in the 3rd world. However, I feel sorry for the people of Chad because history shows that the trickle of money to the people from these projects will quickly dry up as the “new owners” run it into the ground.

It’s as predictable as a woke symbol on NFL jerseys.

[dfwgator]

Gee, maybe they should drill here.....Just a thought.

[volunbeer]

In a sane world Exxon would be able to develop energy resources here in the US employing Americans and increasing revenues at every level but what does it tell you when they choose to invest in unstable 3rd world countries instead of the US?

Not a pretty story on either side of the equation.

[Track9]

“Can sale to Russia or the ChiComs be in the works?”

Exactly my thought. Probably a result of pressure/ loan assurances from Xi. And complete weakness from byedone.

[bert]

I will argue that neither Russia nor China has the technical expertise to operate the facility.Especially China. Russia maybe

[Ultra Sonic 007]

These days, it’s a risky gambit to bet on the incompetency of your geopolitical rivals.

[ansel12]

My French buddies were always eager to get back to the fighting in Chad, they seemed to love it.

[wildcard_redneck]

"“Gibs-me-dat bunch of assets” is an increasingly popular activity around the world. Going after OTHER PEOPLE’S MONEY can be very contagious when it becomes an ALLOWABLE process."

It reminds me of how America and Europe stole the assets of Russian billionairs. Payback is a bitch.

[devere]

I’m guessing that someone failed to pay off Chad’s big guy.

[Bo1988]

"This liberal will be all about...basically taking over, and the government running all of your companies."

[familyop]

"In a sane world Exxon would be able to develop energy resources here in the US employing Americans and increasing revenues at every level but what does it tell you when they choose to invest in unstable 3rd world countries instead of the US?"

Oil deposits are easier to get to at first. After those are exhausted, oil production becomes more expensive and slow. Oil in large quantities is important for a nation's defense.

The U.S. consumes about 20 million barrels of oil per day during peacetime. That's about 7.3 trillion barrels per year.

And as we chatter, billions more rapidly multiplying people in third world countries are watching American entertainment (babes) through the Internet (thanks to global philanthropists) and are very anxious to start driving and flying to get some.