A bill to nationalize the oil assets and rights obtained by Savannah Energy from ExxonMobil’s affiliate, Esso Exploration and Production Chad, was adopted by the Chadian parliament on Wednesday.
ExxonMobil closed a $407 million deal to sell its operations in Chad and Cameroon to the African-focused oil and gas firm Savannah Energy in December, but the Chadian government has since disputed the arrangement.
The nationalization of the assets was supported by 172 of the 175 parliamentarians present, a decision Savannah promised to challenge.
“Savannah and Esso-ExxonMobil have taken actions that pose serious and immediate threats to public order in Chad as well as to all actors in this economic sector that is crucial to the stability and development of Chad,” Minister of Petroleum and Energy Djerassem Le Bemadjiel stated in a statement to the legislature.
The hydrocarbon permits and authorizations for exploration and production that belonged to the Exxon Mobil subsidiary would all be nationalized, the Chadian ministry of energy and hydrocarbons announced last week.
