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Chad threatens to halt oil export
Chad has threatened to cut off the flow of oil if the World Bank does not release funds frozen in a bank account in London.
The announcement, made in a statement on Saturday from the government spokesman, followed a late night meeting between Idriss Deby, the president, and his cabinet ministers to discuss how to react following a rebel attack on the capital on Thursday.
The government gave the World Bank until Tuesday to unfreeze the bank account or else it would shut down the pipeline that carries Chadian oil through Cameroon to terminals on the Atlantic Ocean.
The amount of oil Chad exports - 160,000 barrels per day - is very small by world standards, but the threat demonstrates the government's desperation for international intervention in the country.
While a rebel attack on Thursday on the capital was defeated, the rebels are believed to be regrouping nearby and the threat of a violent overthrow of Deby's government has not diminished.
Poverty alleviation
As Africa's newest oil producer, Chad had reached a deal with the World Bank for the financing of a pipeline on condition that most of the revenues would be used to alleviate poverty.
Earlier this year, Deby broke that deal so he could use the money to finance his military and the World Bank suspended $124 million in aid to his government.
An Exxon Mobil-led consortium exported 133 million barrels of oil from Chad between October 2003 and December 2005, according to the World Bank.
Chad, which receives a 12.5% royalty on each barrel exported, earned $307 million, the bank said.
Hourmadji Moussa Doumgor, the communications minister and government spokesman, said that attempts to restrict how the government spends its oil revenues was a violation of Chad's sovereignty.
He said government officials would enter into negotiations with the consortium so that oil revenues would no longer be deposited into Western banks, but given directly to the government.
The government presumably wants the frozen funds to finance the military's fight against the rebels.
The threat to cut off the oil also puts pressure on the consortium to co-operate, since it has invested $4.2 billion in the pipeline.
Sudan accused
The government also organised a peace rally in central N'djamena on Saturday to demonstrate Deby's popularity.
Deby had earlier announced that he was severing relations with neighbouring Sudan and he threatened to expel 200,000 Sudanese refugees from his country if the international community did not do more to stop what he claimed were Sudanese efforts to destabilise his government.
Deby repeatedly has accused Sudan of hiring mercenaries to overthrow his government.
More
http://english.aljazeera.net/NR/exeres/E5AE2034-DFD8-48E6-88A1-480633CE5FAF.htm
The government gave the World Bank until Tuesday to unfreeze the bank account or else it would shut down the pipeline that carries Chadian oil through Cameroon to terminals on the Atlantic Ocean.
The amount of oil Chad exports - 160,000 barrels per day - is very small by world standards, but the threat demonstrates the government's desperation for international intervention in the country.
While a rebel attack on Thursday on the capital was defeated, the rebels are believed to be regrouping nearby and the threat of a violent overthrow of Deby's government has not diminished.
Poverty alleviation
As Africa's newest oil producer, Chad had reached a deal with the World Bank for the financing of a pipeline on condition that most of the revenues would be used to alleviate poverty.
Earlier this year, Deby broke that deal so he could use the money to finance his military and the World Bank suspended $124 million in aid to his government.
An Exxon Mobil-led consortium exported 133 million barrels of oil from Chad between October 2003 and December 2005, according to the World Bank.
Chad, which receives a 12.5% royalty on each barrel exported, earned $307 million, the bank said.
Hourmadji Moussa Doumgor, the communications minister and government spokesman, said that attempts to restrict how the government spends its oil revenues was a violation of Chad's sovereignty.
He said government officials would enter into negotiations with the consortium so that oil revenues would no longer be deposited into Western banks, but given directly to the government.
The government presumably wants the frozen funds to finance the military's fight against the rebels.
The threat to cut off the oil also puts pressure on the consortium to co-operate, since it has invested $4.2 billion in the pipeline.
Sudan accused
The government also organised a peace rally in central N'djamena on Saturday to demonstrate Deby's popularity.
Deby had earlier announced that he was severing relations with neighbouring Sudan and he threatened to expel 200,000 Sudanese refugees from his country if the international community did not do more to stop what he claimed were Sudanese efforts to destabilise his government.
Deby repeatedly has accused Sudan of hiring mercenaries to overthrow his government.
More
http://english.aljazeera.net/NR/exeres/E5AE2034-DFD8-48E6-88A1-480633CE5FAF.htm
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