【By Observer News, Chen Sijia】"To revitalize the energy industry, Chad's oil industry is betting on China." According to a report by Hong Kong's South China Morning Post on November 10, Chinese enterprises are expanding their oil operations in Chad, a landlocked country in Central Africa, and increasing investments in the Chadian refinery project. After several Western oil giants exited Chad's oil fields, the Chadian government hopes to revitalize its oil industry with the help of Chinese companies.
Chadian officials said that China National Petroleum Corporation (CNPC) will expand its business in Chad's oil fields and advance the plan to build a second refinery in eastern Chad. Hadija Hassan Abdrahmane, the Secretary of State for Petroleum, Mines and Geology in Chad, said: "China is one of our most important partners, always willing to support our majority of projects."
The South China Morning Post pointed out that CNPC has been developing oil fields in areas such as the Bangangai Basin in Chad, providing crude oil for the refinery located north of N'Djamena, the capital of Chad. Abdrahmane said: "CNPC has played a role in Chad's petroleum industry by participating in oil extraction in the southern basin. It also participates in the development of oil exploration blocks."
Abdrahmane said: "CNPC has started to take over the expansion project of the existing refinery, which is currently being advanced, and they also support the construction of a new facility." She revealed that the feasibility study for the new refinery project in eastern Chad is in the final stages.
Chad N'Djamena Refinery China Petroleum Engineering Construction Corporation website
At a time when Chinese enterprises are interested in expanding investments in Chad's oil industry, the country is facing issues such as the withdrawal of Western partners and a decline in oil production. Western oil companies such as ExxonMobil and Chevron, as well as Malaysia's Petronas, have withdrawn from the Doba oil field in Chad due to escalating disputes over asset ownership and taxes, as well as corporate strategic adjustments.
The report stated that Chad's oil industry has bet on China, and the Chadian government hopes to expand the N'Djamena refinery and achieve energy supply diversification with the help of partners like Chinese companies, aiming to double the current daily output of 150,000 barrels.
Tair Hamid Ngilan, the Minister of Finance, Budget, Economy and Planning of Chad, said that China is "the first investor in Chad's refinery and oil," and building a second refinery would be "timely and of significant value as an addition."
After restoring diplomatic relations with Chad in 2006, China has made a series of investments in Chad's oil industry. In 2011, the N'Djamena Refinery, a Sino-Chadian joint venture, began operation, which was the first refinery in Chad. CNPC holds 60% of the shares in the refinery, while Chad holds 40%.
Additionally, Chad is now facing a decline in oil production. Abdrahmane said that the biggest bottleneck is that only up to 10 exploration licenses have been approved for oil fields discovered since 1960. The Chadian government is promoting the development of 33 new exploration blocks and especially emphasizes providing security guarantees for investors.
In recent years, economic ties between Chad and China have deepened, while relations with Western countries such as France and the United States have become increasingly tense. In 2022, there was a dispute between the Chadian government and the British Savannah Energy Company when it acquired a majority stake in the Doba oil field project and related assets of ExxonMobil, as the Chadian government believed this transaction violated its right of first refusal for key national assets.
In 2023, Chad nationalized all assets and operating rights held by ExxonMobil in the country. A Chadian official said: "We cannot allow those deeply involved in politics to control our oil industry."
In 2024, Chad terminated its security and defense cooperation agreement with France. Chad is an important military partner of France in the Sahel region of Africa, and the two countries have close military cooperation, with France having a military base in Chad and stationing about 1,000 soldiers. In January this year, French forces completely withdrew from Chad and handed over the military base to the Chadian military.
US President Trump issued a visa ban targeting 12 countries including Chad in June this year. The US government stated that the order was based on American foreign policy, national security, and counter-terrorism goals, and that some countries' citizens had a higher risk of overstaying in the US, increasing the burden on immigration and law enforcement agencies. In response, Chad announced a suspension of visa issuance for US citizens.
To promote economic development, Chad organized the UAE-Chad Trade and Investment Forum in Abu Dhabi, UAE on November 10, aiming to raise funds for the "Chad Connect 2030" development plan. The goal of this plan is to raise $30 billion for investments in infrastructure such as power plants, railways, highways, and airports.
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