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Chad softened threats to halt oil production and stop sheltering Sudanese refugees Monday following rebel attacks as the United States offered to mediate in a dispute with the World Bank.

President Idriss Deby's government pushed back until the end of April a deadline originally set for midday today for shutting off oil output by the landlocked central African state in a disagreement with the World Bank over frozen oil royalties.

Deby, facing attacks against his rule by rebels he says are backed by neighbor Sudan, also assured the United Nations he would not forcibly expel more than 200,000 refugees in Chad who have fled violence in the western Sudanese region of Darfur.

This softened a threat he made on Friday when he cut diplomatic ties with Sudan and closed the border a day after rebels raided the Chadian capital N'Djamena in fighting that killed and wounded several hundred people.

Deby, weakened by coup plots and army desertions, is resisting a military offensive by insurgents seeking to end his nearly 16-year rule ahead of a May 3 presidential election in which he is standing for a third term.

Khartoum denies backing the anti-Deby rebels. But Deby warned the world on Friday that Chad would no longer shelter Darfur refugees unless a security solution was found by the end of June for the conflict-torn Sudanese Darfur region.

This has increased pressure on the United Nations to solve the three-year-old conflict in Darfur which has allegedly killed tens of thousands and displaced around 2 million people.

The UN High Commissioner for Refugees, Antonio Guterres said Monday he had spoken to Deby and obtained an assurance that the Darfur refugees in Chad would not be expelled.

"I ... am pleased to report that he (Deby) has reaffirmed that refugees will not be 'refouled' (forcibly returned) and Chad will abide by international principles," Guterres said.

The Chadian Government said it was extending until the end of this month a deadline given to the World Bank and to a US-led oil consortium to pay up frozen Chadian oil royalties.

Chad had threatened to stop its 160,000-170,000 barrels per day (bpd) oil output unless it was paid at least US$100 million.

The government said it was relaxing the deadline because it had accepted a US Government offer to mediate.

(China Daily April 18, 2006)