The African nation of Chad has ordered Exxon Mobil Corp. to fork over a sum of money that would make Austin Powers villain Dr. Evil proud ― not quite “100 billion dollars,” but close.
As Bloomberg reports, a court in Chad’s capital of N’Djamena announced in a ruling Oct. 5 that it has ordered the oil and gas giant to pay $74 billion in fines ― a figure nearly seven times the country’s 2015 gross domestic product.
The fine stems from a complaint from Chad’s Ministry of Finance that a consortium led by Exxon hadn’t met its tax obligations, Bloomberg reports. In addition to the $74 billion, the country demands $819 million in royalties.
Quartz pointed out that Chad’s order would be comparable to the United States fining a company more than $100 trillion.
In Chad, Exxon operates oilfields and a pipeline system that transports crude oil to Cameroon for export. The country produces around 160,000 barrels of oil per day, according to the Council on Foreign Relations.
Todd Spitler, a spokesman for Exxon, said in a statement to The Huffington Post that the company disagrees with the court ruling and is “evaluating next steps.”
“This dispute relates to disagreement over commitments made by the government to the consortium, not the government’s ability to impose taxes,” Spitler wrote. “Contract sanctity and respect for the rule of law are core principles used to manage our business over the long term. It is vital for all parties to honor the terms of a contract and abide by applicable law in order to achieve the desired long-term benefits envisioned when projects begin.”
Brahim Abbo Abakar, president of the Chadian court, reportedly confirmed the ruling to Bloomberg.
The hefty fine from the landlocked African nation comes amid mounting troubles for Exxon in the U.S. The company faces numerous investigations into whether it lied to investors and committed fraud by covering up the risks of climate change for decades. The attorneys general of New York and Massachusetts are probing the company, and the Securities and Exchange Commission has begun an investigation into how Exxon Mobil values future projects amid climate change and plunging oil prices.
Last week, the Conservation Law Foundation, an environmental advocacy group, made good on its threat to sue Exxon Mobil, filing what it says is the first U.S. legal action aimed at holding the companyaccountable for its well-documented climate change cover-up.
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