An airplane comes in for a landing above an Exxon sign at a gas station in the Chicago suburb of Norridge, Illinois, U.S., October 27, 2016. Photo Credit: Reuters
Exxon Mobil Corp (XOM.N) is negotiating with Chad over a record $74 billion fine the U.S. oil company was told to pay by a court in the central African nation over unpaid royalties, Bloomberg reported on Tuesday.
Exxon has appealed the Oct. 5 court ruling, but the appeals court hearing has been delayed because of the talks, Bloomberg reported, citing a lawyer for Exxon. (bloom.bg/2fRpf5n)
Exxon declined to comment.
The consortium, which includes Malaysian state oil firm Petronas PETRA.UL and Chadian oil company SNT, were found to owe the country nearly 484 billion CFA francs ($808 million) in royalties, according to the court judgment.
It did not explain why the penalty amounted to more than 90 times that amount.
The unpaid royalties stem from a dispute over fees, sources in the Chadian Finance Ministry have told Reuters. The Finance Ministry, they said, is seeking a 2 percent royalty fee from the consortium, a rate the defendants have said is higher than the agreed level.
Petronas and SNT could not immediately be reached for comment.
Source: Reuters
