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Chevron Receives Notification Ordering Suspension of Oil Activities in Chad


A U.S. oil company says it has received official notification from Chad's government to suspend operations and leave the country.

A spokeswoman for Chevron Tuesday confirmed the company has been told to discontinue its activities due to a tax dispute.

On Saturday, Chad's President Idriss Deby announced that Chevron and Malaysia-based Petronas oil had to leave the central African nation immediately. Mr. Deby said the two companies have not paid taxes totaling $450 million.

Chevron Tuesday said it is fully complying with all tax obligations and it is communicating with the government about its operations.

Both Chevron and Petronas are part of Chad's oil-producing consortium, led by U.S.-based Exxon Mobil.

The French news agency, AFP, reports that Petronas has received an official expulsion notice as well.

Chad is in the process of creating its own national oil company. Last week, President Deby said the state-owned firm should become a partner in the consortium.

Chad, ranked as one of the poorest and most corrupt nations in the world, produces about 160,000 barrels of crude oil per day.

Some information for this report was provided by AFP, AP and Reuters.

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