Chad settles oil taxes dispute

Version 0 of 1.

Chad has settled a dispute with two foreign oil companies after they agreed to pay the country more than $280m (Â£150m) in overdue taxes.

In August, President Idriss Deby threatened to expel Malaysian-run Petronas and US firm Chevron, saying they owed more than $500m (Â£267m).

But the two firms signed an agreement on Friday, allowing them to continue to operate in the country.

Chad also agreed to waive a charge of $64m (Â£34m) as a gesture of goodwill.

The country's finance minister, Abbas Mahamat Tolli, and the Africa director of Chevron - who represented both companies - signed the memorandum.

Further tensions

Under the agreement, the money must be paid within the next seven days.

It will also render the original tax agreement, signed in 2000, as invalid.

However tensions over Chad's plans to join the oil consortium in producing oil remain unresolved.

Mr Deby initially said Chad should have a 60% stake in the consortium - the same share that the two firms hold between them.

Exxon Mobil hold the remaining 40%.

The consortium is said to be against the idea, but Mr Deby is said to be a tough negotiator.