This company will fill the legal vacuum created by the departure of Esso from Chad.
Chad will soon have an oil company. The draft law presented by the Minister of Hydrocarbons and Energy was approved by the extraordinary Council of Ministers on April 24. The company, which will be a public limited company, will be called the Chad Petroleum Company. It will be governed by Chadian law and the rules of the Organisation for the Harmonisation of Business Law in Africa (OHADA).
According to the minutes of the board meeting, the creation of this company is in line with the recent nationalisation of Esso Chad’s assets and rights: “It is a matter of creating an entity that will reassure the former employees of Esso, Chadians who are trained, qualified and experienced.” And former Esso subcontractors who will ensure the continuity of production and the management of the pipeline, thus filling the legal vacuum created by Esso’s departure from Chad, explained Aziz Mahamat Saleh, Minister of Communication.
Tensions with Cameroon
Esso’s departure from Chad is problematic. Firstly, there has been a tug-of-war between Chad and Savannah Energy, a British company that bought the shares (40 percent) released by Esso Chad. Secondly, Chad is forcing its way in by nationalising the assets and rights of Esso Chad. Finally, tensions have arisen between Chad and Cameroon, which has refused to recognise the Chadian government’s nationalisation of Esso’s assets. Last Thursday, Chad recalled its ambassador to Yaoundé for consultations.
However, the Council gave the Minister of Hydrocarbons and Energy “a mandate” to speed up the creation of this new company, which is of “vital interest” to Chad.
CA/ac/lb/abj/APA