- AP/Susan Linnee
According to a Bloomberg News report, the central African nation of Chad just fined oil giant Exxon Mobil $74 billion, as well as an additional $819 million in unpaid royalties.
To put that into perspective, the CIA World Factbook estimates that the 2015 gross domestic product of Chad was just $10.88 billion at current exchange rates.
That means that the fine against Exxon works out to being about 6.8 times the overall size of the country’s overall economy.
Adjusting for the cost of goods and services in Chad through a method called purchasing power parity, Chad’s GDP is around $30.47 billion, according to the World Factbook, meaning that the fine is still around 2.4 times the adjusted GDP.
The fine is also several times the size of the country’s government budget. According to the World Factbook, total government expenditures were about $2.739 billion in 2015, making the fine about 27 times the size of that government budget.
As you can see, a payday of $74 billion would be a huge boost to Chad’s economy. Of course, the oil giant is disputing the fine. Exxon Mobil spokesperson Todd Spitler told Bloomberg News in an email, “We disagree with the Chadian court’s ruling and are evaluating next steps,” so it remains to be seen how much of that fine will be paid.