News wire — Savannah Energy Plc said on Friday it planned to pursue all its legal rights to contest Chad’s move a day earlier to nationalise its upstream assets in the African country.
In December, Exxon Mobil closed the sale of its operations in Chad and Cameroon to Africa-focussed oil and gas producer Savannah in a $407 million deal, but the Chadian government challenged the agreement.
London-listed Savannah owns a 40% interest in the Doba Oil Project in Chad, comprising seven producing oilfields with combined output of 28,000 barrels per day (bpd).
The Chad government had warned in December that it would ask courts to block Savannah’s purchase of the assets from Exxon.
“The actions of the Republic of Chad are in direct breach of the Conventions to which SCI and the Republic of Chad are, amongst others, party,” Savannah said in a statement on Friday.
“The Conventions are subject to the jurisdiction of an ICC tribunal, seated in Paris and the Company intends to pursue all of its legal rights.”
Reporting by Yadarisa Shabong in Bengaluru; Editing by Nivedita Bhattacharjee and Rashmi Aich – Reuters
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