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Sunday, October 9, 2016
A Chadian court became a little excessive when it ordered ExxonMobil to pay an exorbitant fine. The US supermajor was ordered to pay a record $74 billion, and if that wasn’t enough the firm was ordered to pay $819 million in royalties. The Chadian court made its ruling on October 5 in response to a complaint from Chad’s finance ministry.
ExxonMobil, of course, disagrees with the court’s ruling.
“We disagree with the Chadian court’s ruling and are evaluating next steps,” spokesman Todd Spitler said to Bloomberg by e-mail. “This dispute relates to disagreement over commitments made by the government to the consortium, not the government’s ability to impose taxes,” he said in a later e-mail.
If ExxonMobil, and that is a big if, actually paid the fine Chad would pocket more than five times its GDP. The fine alone would be about one-fifth of ExxonMobil’s market cap.
The finance ministry claims that ExxonMobil did not meet its tax obligations.
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