Chad's president ordered US oil company Chevron and Malaysia's Petronas to leave the country Saturday.
President claimed that the companies did not pay taxes.
"Chad has decided that Chevron and Petronas must leave Chad because they have refused to pay their taxes," Idriss Deby said.
Deby said Chad, which is one of Africa's newest oil producers and is setting up a national oil company, would take over the oilfields that have been overseen by the American and Malaysian companies and account for some 60 per cent of its oil production.
If the two companies are evicted, Chad could seek help from China, which has taken an active interest in Africa in its search for raw materials such as oil and metals.
Earlier this year, Chad broke off diplomatic relations with Taiwan and turned instead to China, a move that could help it sell its oil to the energy-hungry power. China is already the largest exporter of oil from Angola and it also exports oil from Sudan.
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Chad President to Kick Chevron, Petronas Away from hte Country
Chad's administration ordered oil companies Chevron Corp. and Petronas to leave the country Saturday