Top > Business > 2006 > August > 2006-08-29

Chadians Chastise Oil Companies

Officials in the African country of Chad have ordered the Chevron oil company out of the country, ordering Chevron to close its offices within twenty-four hours. The Chadian government accuses the international energy giant of not honoring tax obligations. Chadian officials have also ordered Malaysia`s Petronas company, responsible for the Petronas Towers in the Malaysian capital of Kuala Lumpur, to do the same.

Critics, and analysts, say the country is basically trying to earn more from its oil supplies. The move to kick out certain oil companies follows a decision to create a new national oil company for Chad, one which officials say will eventually become a partner in the country`s existing oil-producing consortium, led by Exxon Mobil and which includes the censured Chevron and Petronas companies.

The Republic of Chad began pumping crude oil in 2003, and pumping produces for Chad about 160,000-170,000 barrels per day. Even though Chad`s potential oil wealth exists, many of the north-central African nation`s residents live in abject poverty. The recent move, as mentioned before, seems to have been undertaken because Chadians are unhappy with the amount of money they`ve gotten back from oil production.