Companies

Chad: Exxon Mobil disagrees with Court’s $819 million royalties verdict

Thursday, 06 October 2016 17:01

ExxonMobil Corp. on Thursday announced that it is considering its next steps after the Chadian High Court instructed the oil company to pay $819 million in royalties.

We disagree with the Chadian court’s ruling,” Todd Spitler, ExxonMobil’s spokesman, said.

The Chadian court on October 5, 2016, ruled in favor of the government of the country following complaints by the Finance Ministry that the company had not been paying its taxes.

The verdict was against an Exxon Mobil-led consortium, which operates a pipeline transporting crude from Chad to a marine terminal in Cameroon for export.The other companies are Chevron Corp. and Malaysia’s state-owned Petroliam Nasional Bhd.

According to Chad’s Finance Minister, Ngabo Seli Mbogo, the court ruling was clear and precise.

In 2006, President Idriss Deby granted Chevron and Petronas 24 hours to leave the country, with the claim that they had not been meeting their tax obligations. The companies denied the claims and the case was later resolved, Bloomberg news reports.

Anita Fatunji

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