Chad nationalizes assets by US oil giant Exxon: Government
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In a huge blow to US interests in Chad, the latter announced that the country is nationalizing all assets from multinational oil giant Exxon Mobil.
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ExxonMobil billings refinery in Billings, Montana, US. (AP)
Chad has declared that its government is nationalizing Exxon Mobil, including its hydrocarbon and exploration permits.
″The finance and budget minister must make sure the said decree is implemented from the date of its publishing,” stressed Haliki Choua Mahamat, the government’s general secretary on state media.
It is worth noting that countries around the world have a tradition of nationalizing private enterprise, most notably during times of economic and social crisis. The nationalization of a private company means that all of its assets are now owned by the government.
Exxon has been active in Chad for many years, and the country started producing oil in 2003. The US oil company was in charge of the Chadian Doba oil project.
The government made its decision to nationalize the company's assets following a protracted disagreement between the two, as Exxon had refused to sell its assets to Chad.
Chad's government is reportedly trying to bolster its energy security amid a slow economic rebound.
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