2023-04-21 21:00:05
The dispute between Cameroon and Chad has its roots in the management of oil and assets related to the Chad-Cameroon pipeline.
The two countries with divergent approaches are waging a legal battle to assert their respective interests. Arbitration by the Paris International Chamber of Commerce (ICC) recently ruled in favor of Savannah Energy, thus rekindling diplomatic tensions between the two nations.
Acquisition of ExxonMobil assets by Savannah Energy
Savannah Energy acquired in December 2022 the assets of ExxonMobil for a sum of 250 billion FCFA. This transaction allowed the British company to take a 40% stake in the Doba oil project in Chad, as well as an indirect 40% stake in the Chad-Cameroon export transmission system. The latter includes a 1,081 km pipeline and the Komé Kribi 1 floating production, storage and offloading facility, located off the coast of Cameroon.
The economic benefits for Cameroon
The Chad-Cameroon pipeline is a major source of revenue for the Cameroonian state. From January to October 2022, the operation of this pipeline generated transit rights of 34.04 billion FCFA, up 26.5% compared to the same period in 2021.
Chad’s protest and the legal battle
The Chadian authorities are contesting the legality of the transaction between ExxonMobil and Savannah Energy, arguing that the Public Petroleum Company of Chad (SHT) did not exercise its right of preemption. The legal battle took place before the Tribunal de Grande Instance of N’Djamena and the CCI in Paris.
The decision of the International Chamber of Commerce of Paris
Last January, the ICC ruled in favor of Savannah Energy, deeming the Chadian decision illegal. This decision allows the British company to continue its activities, despite the challenges of the Chadian authorities.
The impact on diplomatic relations between Cameroon and Chad
The dispute over oil issues is exacerbating diplomatic tensions between Cameroon and Chad. However, a compromise between the two countries would be necessary to preserve their economic interests and strengthen regional cooperation. The diplomatic crisis between Cameroon and Chad is fueled by oil issues and the management of the Chad-Cameroon pipeline.
TTSO / 237online.com
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