Chad is charting a bold new course for its oil sector, pivoting toward China amid declining production and the departure of Western partners, with a US$4.5 billion refinery upgrade at the center of its strategy.
The landlocked Central African nation, which currently produces about 150,000 barrels per day, faces mounting pressure to stabilize its energy revenues and strengthen its economic resilience.
By leaning on Beijing and Gulf allies like the UAE, Chad aims to modernize its oil industry, attract strategic investment, and secure long-term development in a sector that has historically underpinned national finances.
Expanding capacity with a second refinery
Leading the expansion is the China National Petroleum Corporation (CNPC), which officials say will scale up operations in existing southern fields and advance plans for a second refinery in eastern Chad.
“Our partner CNPC has positioned itself to take over the expansion of the existing refinery, which is already under way, and they are also in favour of constructing a new, fast-track facility,” said Khadidja Hassane Abdoulaye, Chad’s secretary of state for petroleum, mines and geology, as reported by the South China Morning Post.
“CNPC is already active in the oil sector through its presence in oil exploitation in the southern basin,” Abdoulaye added. “It is also present in the oil sector at the exploration fields. It exploits the oil and refines it.”
Finance Minister Tahir Hamid Nguilin emphasized the importance of local refining capacity, noting that China has been “the first investor in refineries and oil,” and called the second facility “a timely and valuable addition.”
Chad’s strategy also mirrors broader regional dynamics.
This trend highlights a growing recalibration in which African resource-rich nations seek alternatives to Western capital and influence.
For Chad, the second refinery and expanded oilfield operations are more than energy projects, they represent a strategic realignment aimed at sustaining output, fostering economic growth, and enhancing energy independence.
“Beijing is one of our most important partners and is always willing to support us in most of our projects,” Abdoulaye said, reflecting the government’s confidence in its new direction.
