N’Djamena, Chad ? Chad’s president on Monday backed off a threat to expel Sudanese refugees, heeding international calls to protect the tens of thousands who have fled Sudan’s volatile Darfur region.

President Idriss Deby’s government also extended a deadline for halting oil production, saying it welcomed U.S. help in resolving a dispute with the World Bank over oil payments.

Deby, who is seeking a third term in May 3 elections, has been trying to draw attention to Chad’s problems as he seeks help in stopping rebels he says are backed by neighboring Sudan after they launched an unsuccessful assault Thursday on the capital of N’Djamena.

Chadian forces repelled that attack – parading more than 250 captured insurgents through the streets of the capital.

But the rebel United Front for Change was regrouping in the countryside and fears of a violent overthrow of the government remained. Rumors circulated that a rebel force was 15 miles outside the capital.

The president announced Friday that he was severing relations with Sudan and would expel 200,000 Darfur refugees packed in camps along the border by June 30 if the international community did not do more to stop the rebel movement.

The U.S. and others urged him to reverse his decision. And U.N. High Commissioner for Refugees Antonio Guterres said Monday that Deby had assured him in a phone call the night before that Chad would abide by international refugee law and not force out the Sudanese.

A member of Chad's army guards the Parliament, Monday, April 17, 2006 in the capital N'djamena. President Idriss Deby has reversed earlier threats by officials to forcibly return Sudanese refugees to their country's volatile Darfur region after allegations that Chadian rebels have recruited fighters from the camps, a senior U.N. official said Monday.

Chad’s Oil Minister Mahmat Hassan Nasser threatened over the weekend to shut down the country’s pipeline unless the government received by today oil revenues that were frozen by the World Bank. But Foreign Minister Ahmat Allam-mi said Monday that the deadline was extended until the end of this month to enable the U.S. government to mediate in the dispute.

The World Bank, which had helped finance oil industry infrastructure after Chad agreed to observe stringent rules on the use of revenues, froze an escrow account with $125 million in oil royalties in London in January and cut $124 million in financial aid.

Those decisions followed a vote by Chad’s parliament to allow the release of more revenues to the government’s general budget instead of channeling them to health, education and infrastructure.

Chad’s oil exports – 160,000 barrels per day – are small by international standards and have a high sulfur content, reducing their value. Deby appeared to be gambling that any threat to the world oil supply would bring attention to his plight and free up needed funds to finance his government.