Chad calls on foreign energy partners to renegotiate 1988 oil deal

Chad's president, already embroiled in an oil revenues dispute with the World Bank, called on foreign energy partners to renegotiate a 1988 oil deal, which he criticized as "a fool's agreement."
President Idriss Deby said his country was receiving too small a share of oil revenue from the 1988 agreement signed with a consortium headed by ExxonMobil.

The deal led to the construction of a $ 3.7 bn pipeline which now carries landlocked Chad's oil to the coast of Cameroon.
"Chad only gets 12.5 % of royalties from the oil revenues ... I didn't sign the agreement, it was my predecessor... it's a fool's agreement," Deby said.

Under the original 1988 oil development agreement with the foreign consortium, Chad gets 12.5 % of the wellhead value of total production, before quality discount and the cost of sending it through the pipeline to Cameroon's Kribi terminal.