Chad nationalizes assets by oil giant Exxon, says government

By SAM MEDNICK
Associated Press

DAKAR, Senegal (AP) — Chad’s government said it was nationalizing all assets from multinational oil giant, Exxon Mobil, including hydrocarbon and exploration permits. The nationalization of a private company means that all assets are now owned by the government. While this used to happen in the 1960s and 70s it hasn’t happened in a long time and doesn’t conform to the legalities of the sector, say energy experts. Chad began producing oil in 2003 and Exxon has been operating in country for several decades. It was running the Doba oil project in Chad of which it owned a 40% stake. Analysts say the move could scare away investors from West Africa at a time of growing global energy demand and a decline in foreign investments in the region.