Savannah Midstream Investment Limited is seeking approximately CFAF 228.6 billion through arbitration proceedings involving, among others, Cameroon’s SNH and Chad. The dispute concerns interests linked to Cotco, the operator of the Chad-Cameroon oil pipeline.
The Cotco dispute has taken on a new financial dimension. Savannah Midstream Investment Limited (SMIL) is seeking more than US$397 million, equivalent to approximately CFAF 228.6 billion, including principal and interest, in arbitration proceedings involving five respondents, among them the Société Nationale des Hydrocarbures (SNH) and the State of Chad.
The amount claimed places the dispute at the centre of financial issues surrounding the oil infrastructure connecting Chad and Cameroon.
A dispute involving Cotco
The Cameroon Oil Transportation Company (Cotco) plays a central role in transporting Chadian crude oil through Cameroonian territory. The company operates the transportation system linking Chad’s oil-producing areas to the oil export terminal on Cameroon’s coast.
Against this backdrop, any dispute concerning the economic interests associated with the infrastructure may have significant implications for the various stakeholders involved.
Savannah Midstream Investment Limited has initiated arbitration proceedings to pursue its financial claims. The amount announced, exceeding US$397 million, includes both principal and interest.
More than CFAF 228 billion at stake
Converted into local currency, the claim amounts to approximately CFAF 228.6 billion. The scale of the claim gives the proceedings particular significance, both for the parties directly involved and for the broader economic environment of the regional oil sector.
The inclusion of SNH among the respondents also places the case within the scope of Cameroon’s strategic interests in the hydrocarbons sector. At this stage, the arbitration proceedings will have to determine the potential responsibilities of the various parties and, where applicable, the amount that could ultimately be awarded.
A case to watch for the regional oil sector
Beyond the amount claimed, the case highlights the financial and contractual issues associated with major cross-border energy infrastructure projects in Central Africa.
The Chad-Cameroon oil pipeline is a strategic infrastructure asset for the export of Chadian crude oil. The progress of the arbitration proceedings will therefore be closely watched by industry stakeholders, particularly because of their potential financial and contractual implications for the parties concerned.
