Since the CEMAC Commission authorized the acquisition of Petronas Carigali Chad Exploration &Production Inc’s shares in the Doba consortium by the Chad Hydrocarbons Company (SHT) on May 15, 2023, the geography of Cotco’s capital has changed. Chad’s shares jumped to 53.77% while those of the National Hydrocarbons Company (SNH), stagnated at 5.17%. At the end of the SNH board of directors which froze the transaction concluded between Savannah Midstream Investments on April 19, 2023, the other shareholders, in particular Exxon Mobil, hold the remaining shares.
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This situation led to the dismissal of Savannah’s directors from the Cotco board meeting held in Paris on May 24. Since that time, an epistolary fight has started between SNH and the Chadian authorities aimed at contesting the legitimacy of the decisions of the General Assembly held in Paris on May 24, 2023 as well as its significance in the capital of the structure. To affirm its predominance in the capital, Chad has since requested the freezing of financial transactions apart from the payment of staff salaries, taxes and other taxes in Cameroon and Chad.
Major topics
Cotco’s board of directors, announced for next week in Paris, should therefore address all these subjects, the first of which will concern the appointment of a new executive. For ” be more in line with the spirit of shared and local management of the pipeline “, he was “agreed that the management of Cotco be carried out by a team proposed by Cameroon and Chad with, initially, a general manager proposed by Cameroon and a deputy general manager proposed by Chad for a term of three years renewable once , and alternately between the two countries every six years».
We should also address the issue of SNH’s shares in this council which, according to Chad, will be increased to more than 15%. While SNH is asking for 20% of the shares in Chad so that its participation increases to more than 25%, Chad, which holds nearly 54% of the shares, is offering more than 10% of additional shares. SNH should get away with at least 20% of the shares in the end if Chad were to honor its commitments “in accordance with what has been agreed by the very high authorities of the two countries ».
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In addition to these decisions, the board should also work on lifting the financial restrictions imposed by the Chadian authorities on banks, BEAC and Cobac since June 2, 2023. Since that day, Cotco’s leaders have not can move only funds intended for salaries, taxes and duties in Cameroon and Chad.
Source: Current Challenges n°782 of Monday July 3 to 5, 2023
