In retaliation to Cameroon’s interference and other behaviors deemed disrespectful towards its neighbor, the Chadian authorities decided to recall their ambassador posted in the Cameroon.
In a press release issued on 20 April 2023 by the Secretary General of the Presidency of Chad, Gali Ngothé Gatta, we learn that for weeks there have been and continue to be disputes that give cause for concern about the collaboration and partnership between Chad and Cameroon in the management of the pipeline. These relate to the “alleged acquisition of the assets of the former Esso Chad by the nebulous Savannah Energy“.
It is in this line that the Minister of State, Secretary General of the Presidency of the Republic, Ferdinand Ngoh Ngoh, left yaounde this wednesday, 26 april 2023, bound for Ndjamena , Chad. He is an envoy of the president of the Republic, his excellency Paul Biya, to his counterpart, General Mahamat Idriss Deby Itno, Transitional President of the Republic of Chad.
In fact, for weeks, Chad has been seriously concerned about the “unfriendly actions contrary to the interests of Chad” of Cameroonian representatives on the boards of Cameroon Oil Transportation company (Cotco) and Chad Oil Transportation company (Totco). “Several follow-up letters have been sent to the Cameroonian authorities; letters that have remained unanswered,” the secretary general of the Presidency of the Republic of Chad said in his statement.
Another subject of concern in this case of nationalisation of Esso’s assets in Chad, Chad also denounces the pressure of Cameroonian personalities who gravitate around Savannah Energy on Chadian officials. These “interferences” are not to Ndjamena’s liking.
Not content with this state of affairs, the National Hydrocarbons Company and Savannah Energy are going to conclude “an agreement providing for the transfer by a subsidiary of Savannah Energy Plc of 10% of Cotco’s share capital to SNH. This act is extremely annoying in Ndjamena, especially as it violates, according to these authorities, Cotco’s conventions and statutes.
In 2014, the Cameroon Oil Transportation Company (COTCO), the company responsible for the Cameroon side of the Chad-Cameroon pipeline, Chadian crude oil transported via this structure enabled the Cameroonian Treasury to bring in 200 billion FCfa (400 million dollars) in total earnings in 10 years.
This amount included, transit fees, income tax and various taxes and fees paid by the oil company which has 1,000 employees, 95% of which are Cameroonian nationals.
Then, in addition to the new oil-mining operators in Chad (Griffiths from the UK and China Petroleum), who would also like to use the pipeline for their production transportation, Niger is expected to soon export its oil via the Chad-Cameroon pipeline, generating more revenue for the Cameroonian Treasury. These sums up to basic factors which triggers Chad consideration to an unfair management of the Pipeline. They estimate Cameroon draws more interest than Chad.