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Exxon in Talks Over $74b Chad Fine

Exxon in Talks Over $74b Chad FineExxon in Talks Over $74b Chad Fine

Exxon Mobil Corp is negotiating with Chad over a record $74 billion fine the US oil company was told to pay by a court in the Central African nation over unpaid royalties, Bloomberg reported on Tuesday. Exxon has appealed the Oct. 5 court ruling, but the appeals court hearing has been delayed because of the talks, Bloomberg reported, citing a lawyer for Exxon, Reuters reported. The court decision fined a consortium led by Exxon over $73.44 billion, nearly four times BP's Deepwater Horizon settlement and roughly seven times Chad's annual gross domestic product. The consortium, which includes Malaysian state oil firm Petronas and Chadian oil company SNT, were found to owe the country nearly $808 million in royalties, according to the court judgment. It did not explain why the penalty amounted to more than 90 times that amount. The unpaid royalties stem from a dispute over fees, sources in the Chadian Finance Ministry have told Reuters.

 

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