Chad slams Exxon Mobil with fine 7 times its GDP

chad

The government of Chad is currently at loggerheads with Oil giants, Exxon Mobil. This is coming after a court in Chad’s capital of N’Djamena announced in a ruling Oct. 5 2016 that Exxon should pay $76 billion in fines for tax evasion.This figure is 7 times the GDP(gross domestic product) figures of Chad in 2015.

The oil company’s problems began after a complaint from Chad’s Ministry of Finance that a consortium led by Exxon hadn’t met its tax obligations. Spokesperson for EM, Todd Spitler had this to say;

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“This dispute relates to disagreement over commitments made by the government to the consortium, not the government’s ability to impose taxes.Contract sanctity and respect for the rule of law are core principles used to manage our business over the long term. It is vital for all parties to honor the terms of a contract and abide by applicable law in order to achieve the desired long-term benefits envisioned when projects begin.”

Spitler also revealed that the company was evaluating ‘next steps’ to take. The Chadian government is also demanding $819 million in royalties from Exxon.

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Chad produces 160,000 barrels of oil per day. Exxon manages oil fields and operates and hat transports crude oil to Cameroon for export.

 

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