© Reuters. Reuters: Chad wants to cut off Glencore’s oil supplies in debt dispute
- The government of Chad is on a collision course with top creditor Glencore (LON:GLEN) (OTCPK:GLCNF, OTCPK:GLNCY), as it wants to divert oil from the company to Exxon Mobil (NYSE:XOM) beginning at the new year amid a dispute over debt restructuring, Reuters reports.
- A government document shows Chad wanting to hand over crude oil marketing rights currently held by Glencore under a $1.4B loan agreement to XOM, the biggest oil producer in the country, according to the report.
- XOM has been paying royalties to the government since 2014 in physical crude cargoes that were subsequently allocated by a state-run firm to Glencore, but the process will end in early January as the government has asked XOM to pay royalties in cash instead, replacing Glencore as the marketer of the royalty oil.
- A source close to Glencore says the change would represent a “clear and serious breach of the agreement,” the report says.
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