Chad has announced that it is nationalizing all of Exxon Mobil’s assets in the country, including its hydrocarbon and exploration permits, as The Hill reveals. This move, which is rare in the current legal frameworks of the energy sector, means that the government will own all of the assets.
Exxon has been operating in Chad for several decades and was running the Doba oil project. Energy experts suggest that this nationalization could potentially scare away investors from West Africa, especially at a time when there is more and more demand of global energy, and let’s also not forget the decline in foreign investments in the region.
Olufola Wusu, who is head of the oil and gas desk of the Megathos Law Practice in Nigeria, explained, as The Hill quotes:
Expropriation of any sort without compensation is not a step in the right direction, because it is going to erode investor confidence in that particular country and once investors are jittery, they pull back their investment, so regulators and leaders in Africa need to play by the rules.
Exxon, also known as ExxonMobil, is one of the world’s largest multinational oil and gas corporations. The company is based in Irving, Texas and was formed in 1999 through the merger of Exxon and Mobil. With operations in more than 200 countries, ExxonMobil is involved in all aspects of the oil and gas industry, including production, refining, exploration, and distribution.
ExxonMobil has a long history in the energy sector, dating back to the late 19th century. The company has been a pioneer in many areas of the industry, including offshore drilling and hydraulic fracturing. ExxonMobil is also known for its research and development efforts, particularly in the area of carbon capture and storage.
Exxon has been involved in some of the largest oil discoveries in history, including the discovery of the Prudhoe Bay oil field in Alaska, which is one of the largest oil fields in North America. The company has also been successful in developing new technologies for oil and gas exploration and production and has made significant investments in research and development.