Chad extends deadline for frozen oil funds release

N'djamena - Chad has pushed back until the end of April a deadline for halting oil production in a dispute with World Bank over frozen Chadian oil royalties, the government said on Monday.

Chad had threatened to stop its oil output unless the World Bank released the funds or a US-led oil consortium operating in the central African country paid up at least US$100 million ($164.28 million).

A Chad government statement said it would relax the deadline, originally set for midday Tuesday, because it had accepted a US government offer to mediate in the dispute.

"The government is happy to accept the American government's offer of mediation and has decided to grant the time proposed for this mediation by the US State Department, that is, until the end of April," the statement, read on state radio, said.

President Idriss Deby dragged oil to the centre of Chad's political crisis on Friday by announcing the deadline for either the World Bank to unfreeze the royalties payments or for the US-led oil consortium to pay up.

The announcement came a day after an assault by rebels on the capital N'Djamena in which several hundred people were killed.

The oil royalties have been frozen for five months in a dispute with the World Bank after Chad changed an oil revenue law which earmarked a share of oil revenues for social spending for future generations.

Chad said it needed to access the oil funds more quickly to cover priorities that included spending on security.

- REUTERS