The Paris Court of Arbitration has sided with Chad's transitional government in a dispute with British oil company Savannah Energy (SAVES.L).

The court rejected Savannah's request to freeze the accounts of COTCO, the oil pipeline company, following Chad's nationalization of its upstream oil assets.

Savannah, which acquired a 40% stake in Chad's Doba Oil Project from Exxon Mobil in December 2022, had contested the government's nationalization move. The project includes seven producing oilfields with a combined daily output of 28,000 barrels.

Chad's government challenged the sale to Savannah, and the Paris court's May 8th ruling upholds their position. Previously, Savannah had announced its intention to pursue all legal avenues to challenge the nationalization.

However, the latest ruling allows COTCO to maintain access to its accounts.