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Friday, March 24, 2023
Savannah Energy issued an investor release Friday noting the Decree issued by Chadian President Idriss Deby on March 23, nationalizing Savannah Chad’s upstream assets in the country.
Savannah had purchased these upstream production assets from ExxonMobil subsidiary Esso Exploration and Production Chad (EEPCI) in December, as well as EEPCI’s midstream assets. However, on December 13, a Reuters report stated that the Chadian government may seek to block the transaction as it believed the terms were “substantially different from what had been presented to it a year ago.”
Savannah states these actions “are in direct breach of the Conventions to which Savannah Chad Inc’s (SCI) and the Republic of Chad are, amongst others, party.”
Savannah went on to say that “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 around 9% 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 program.
“The Conventions are subject to the jurisdiction of an ICC tribunal, seated in Paris and Savannah intends to pursue all of its legal rights.”
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