Savannah Energy PLC, the British independent energy company is once again drowned in legal battle but this time, the company is in court recover the its upstream production assets in Chad.
The President of the Republic of Chad had nationalised Savannah Chad Inc’s (“SCI”) (formerly Esso Exploration and Production Chad Inc (“EEPCI”) but Savannah Energy Chad Limited completed the acquisition of EEPCI.
The company in a statement described the actions of the Republic of Chad as a direct breach of the Conventions to which SCI and the Republic of Chad are, amongst others, party.
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 9 December 2022, an increase of c.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 programme.
The Conventions are subject to the jurisdiction of an ICC tribunal, seated in Paris and the Company intends to pursue all of its legal rights.
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