Exxon Negotiating With Chad Over Court-Imposed $74B Fine
Exxon Mobil (NYSE:XOM) is in talks with Chad’s government regarding a huge US$74-billion fine it was ordered to pay last month by a Chad court for failing to meet tax obligations and withholding royalties, a lawyer for the company told Bloomberg in an interview on Tuesday.
Last month, the High Court of Chad ruled that an Exxon-led consortium pay the sum, which is much higher than the country’s GDP of US$10.8 billion last year.
Experts say the chance that Chad may collect what it believes are its dues is beyond remote.
Exxon has appealed the court ruling, but the appeals court hearing has been postponed because talks are being held, Bloomberg quoted Exxon lawyer Thomas Dingamgoto as saying.
According to the Chad government’s general director of legal affairs, Fang Langou Operal, the fine imposed on Exxon is compatible with a customs code of the Central African Economic and Monetary Community (CEMAC), of which Chad is a member.
Source / More on: oilprice.com
Follow us: @OilAndGasPress on Twitter | OilAndGasPress on Facebook