PARIS (AP) — The Bank of Central African States is locked in a dispute with oil companies operating in the region over a requirement that the companies set aside funds for environmental rehabilitation of depleted oil fields.
The measure, adopted in 2018, requires oil companies to transfer the funds to the Bank of Central African States. However, the companies are resisting, citing concerns about the bank’s immunity and potential loss of funds.
If the companies fail to comply by April 30, they will face penalties of 150% of the amount owed. The dispute is being discussed at meetings in Paris and will continue on the sidelines of the International Monetary Fund and World Bank spring meetings in the United States.
The standoff has raised concerns about the potential impact on oil investments in Central Africa. According to S&P Global, the dispute could deter oil investments in the region.
News Agencies contributed to this report