by Nurat Uthman
The Paris Court of Arbitration has rejected a bid by Savannah Energy Plc to freeze COTCO oil pipeline company’s accounts after Chad nationalised its upstream assets in the country, Chad’s transitional government said on Monday.
London-listed Savannah said in March last year that it planned to pursue all its legal rights to contest Chad’s move to nationalise its upstream assets in the central African country.
In December, Exxon Mobil closed the sale of its operations in Chad and Cameroon, including COTCO, to Africa-focussed oil and gas producer Savannah in a $407 million deal, but the Chadian government challenged the agreement.
The Paris Court of Arbitration ruled against Savannah on May 8, Chad’s transitional government said in a statement on Monday.
Savannah owns a 40% interest in the Doba Oil Project in Chad, comprising seven producing oilfields with combined output of 28,000 barrels per day.
