Savannah threatens suit over Chad’s planned asset nationalisation

Savannah Energy has said it will challenge Chad over plans to take over its assets.

In a statement on Friday, the British independent energy company described the actions of the Republic of Chad as a breach of the conventions to which Savannah Chad and the country, amongst others, are parties.

The President of the Republic of Chad had on March 23, 2023, said it was nationalising SCI formerly known as Esso Exploration and Production Chad Inc, an upstream production firm in Chad. Savannah Energy Chad Limited completed the acquisition of EEPCI on December 9, 2022.

The statement said, “This Presidential Decree has been issued by the Republic of Chad, notwithstanding the fact that under SCI’s operatorship, the historic production decline was immediately reversed, with daily production averaging 29,349 barrels per day since December 9, 2022, an increase of nine per cent as against the equivalent period prior to Savannah taking control of SCI. Savannah had also initiated plans to significantly increase production further through an active investment programme.

“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.”

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