The High Court in Chad has fined Exxon Mobile with $74b for allegedly underpaying royalties for 15 years, Bloomberg Reported. The two other companies named in the case are Chevron Corp. and Malaysia’s state-owned Petroliam Nasional Bhd.
The High Court in the capital, N’Djamena, announced its ruling early October in response to a complaint from the country’s Finance Ministry, Ngabo Seli Mbogo, that a consortium led by Exxon hadn’t met its tax obligations. The court also demanded the Texas-based oil explorer pay $819m in overdue royalties. Exxon plans to dispute the court’s ruling and the fine, according to Investopedia.
Exxon’s legal dispute centers around a pipeline that carries crude oil from Chad to an export terminal located in Cameroon. In July, Exxon and its partners filed for arbitration with the International Court of Arbitration in Paris over an exemption from export duties they claimed was included in the agreement with Chad. A spokesperson for the company stated: “this dispute relates to a disagreement over commitments made by the government to the consortium, not the government’s ability to impose taxes.”