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04/17/2006:

"Chad Vows to Cut Oil in Feud With World Bank"

NDJAMENA, Chad, April 15 (AP) — Chad threatened Saturday to cut off its flow of oil unless the World Bank releases money frozen in a dispute over how the government should use its oil revenues.

The announcement followed a late-night meeting by President Idriss Déby and his cabinet to discuss their response to the rebel attack on the capital on Thursday. The rebels, led by former commanders in Mr. Déby's army, were repulsed but are believed to be regrouping nearby.

It is likely that the government wants the frozen money to pay for its fight against the rebels.

Chad had a deal with the World Bank to pay for a pipeline on condition that most of the revenues would be used to ease poverty. Mr. Déby broke that deal this year to use the money to finance his military, prompting the World Bank to suspend $124 million in aid.

The government gave the World Bank until Tuesday to unfreeze the money, saying that if it did not do so Chad would shut down the pipeline that carries its oil through Cameroon to terminals on the Atlantic Ocean.

Chad exports about 160,000 barrels per day, a small amount by world standards.

An Exxon Mobil-led consortium exported 133 million barrels of oil from Chad from October 2003 to December 2005, according to the World Bank. Chad earned $307 million, the bank said.

Hourmadji Moussa Doumgor, the communications minister and government spokesman, said the effort to restrict how the government spends its oil revenues violated 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 would go directly to the government.
nytimes.com