Chad scraps Chinese oil permits

11 Aug, 2014

Chad has decided to withdraw five exploration permits issued to Chinese oil giant CNPC and press charges in a spat over a $1.2 billion fine for environmental violations, the oil ministry said. Oil Minister Djerassem Le Bemadjiel told a press conference late Saturday the move was "to avoid further environmental degradation, not to make place for other companies."
The China National Petroleum Company was forced to suspend operations in Chad in May after refusing to pay a fine of $1.2 billion (800 million euro) for "unacceptable practices" that had led to "noxious spills" around drilling sites.
The government of the large central African nation also said it planned to press charges against the CNPC both in Ndjamena and in France, whose commercial court has a chamber specialising in international disputes.
"Amicable negotiations are no longer possible. All efforts have been in vain," government secretary general Abdoulaye Sabre told the press conference.
"Next week a government delegation will go to Paris to file a complaint with the commercial court for refusal to pay a fine."

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