Exxon Is Hit With Fine From Chad Five Times Country’s GDP

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By Daniel N'doh Nadjitan, Paul Burkhardt and Joe Carroll

October 6, 2016 at 1:21 PM UTC

Updated on

October 7, 2016 at 4:01 AM UTC

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Exxon Mobil Corp. was ordered to pay a record $74 billion fine in Chad for underpaying royalties in the central African nation where the company has been drilling for 15 years, according to a court document.

The fine is about five times more than Chad’s gross domestic product, which the World Bank estimates at $13 billion. The High Court in the capital, N’Djamena, announced its ruling Oct. 5 in response to a complaint from the Finance Ministry that a consortium led by Exxon hadn’t met its tax obligations. The court also demanded the Texas-based oil explorer pay $819 million in overdue royalties, according to the document.