Chad

EITI Status Yet to be assessed against the 2016 Standard
EITI Member Since 2007
Latest Data From 2015
Website EITI Chad

Overview

Chad is a leading producer of crude oil and mines minor amounts of minerals, including gold and limestone. International companies, represented by the Esso Exploration & Production Chad Inc (EEPCI), the China National Petroleum Corporation International (CNPCI) and the Glencore consortiums, are key actors in the exploration, production and refining of oil, alongside the Hydrocarbons Company of Chad (Société des Hydrocarbures du Tchad, SHT). Social conflicts and public debate have arisen around management of oil revenues, including the oil-backed loans granted by Glencore in 2013 and 2014, environmental impact of extractive industries and poverty alleviation. Chad was the first country to include oil transport (the Chad-Cameroon pipeline) and refining (the Djermaya refinery) in the scope of its EITI reporting. This has led to better public understanding of the midstream hydrocarbons sector.

Today, we can say with certainty that all oil and gas payments made by companies flow to the government’s budget and are effectively overseen.
HE Bedoumra Kordje, Minister of Finance

Production

Since production started in 2003, Chad has been a leading producer and exporter of crude oil. Minor mining of mineral commodities such gold and limestone also takes place. Crude oil is transported to the port of Kribi in Cameroon through the Chad-Cameroon pipeline. Ongoing development of new oil and gas fields is taking place in areas adjacent to the country’s producing Doba fields in the South. The government has also encouraged new exploration for deposits of non-hydrocarbon minerals since 2015.

Natural resources

Chad has rich deposits of crude oil, estimated in 2015 to amount to 1,5 billion barrels. Abundant crude oil resources are found in several basins in the country’s North, West, South-West and South-East. Gold deposits are mainly located in the West, while uranium deposits are predominantly in the North and West.

CommodityReservesUnitSignificance
Oil1.5 million barrels
GoldN/Ametric tonsGold mineralisation has been found in the west (Quadday). Alluvial gold is mined particularly along the May N'Data river.
Uranium3000metric tonsUranium oxyde (U308) deposits.

Commodity trading

Chad participates in the EITI targeted effort on commodity trading. Its 2015 EITI Report provides information on the long-term agreement between the Government of Chad and Glencore that includes a USD 2 billion oil-backed loan to the government, with cargo-by-cargo sales declared by the SHT and further information disclosed by Glencore Energy UK.

Revenue collection

The latest EITI disclosures show that Chad received USD 538 million from extractive industry taxation, compared to USD 1.97 billion in 2014, therefore decreasing by 73%. Almost all of these revenues (99.6%) came from hydrocarbons, including oil transport and refining. Revenues were mainly collected through crude oil sales, corporate income tax, and the Treasury’s share of royalties on oil and gas production.

Initializing chart.

Revenue allocation

The Public Treasury manages all of the Chadian state’s revenues from the extractive industries. Subnational governments from oil producing regions are entitled to 5% of oil royalties from the Treasury.  

Innovations

The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.

  • Glencore Energy UK participated in EITI reporting for the first time under the 2015 EITI Report and disclosed information about the repayment of the almost USD 2 billion oil-backed loans by the government of Chad.  
  • Chad was the first country to cover oil transit (the Chad-Cameroon Pipeline) and oil refining (petroleum refinery at Djermaya) in its EITI reporting.
  • Chad EITI cooperates closely with the Petroleum Revenue Oversight and Control Committee (CCSRP).  

Implementation

Governance

The government issued Prime Ministerial Decree 83/PM/CAB/07 on 20 August 2007 declaring Chad’s intention to apply for EITI candidature. Presidential Decree 1074/PR/PM/MP/2007 on 14 December 2007 creates a two-tier governance structure, with a high-level steering committee (Haut Comité de Pilotage) and the multi-stakeholder group (Comité de Pilotage) served by a National Secretariat (Secrétariat Technique Permanent). The decree providing the original legal basis for EITI implementation was renewed on 14 August 2014 with Presidential Decree 854/PR/PM/MPME/2014.  

Validation

Chad's Validation against the Standard will commence on 1 July 2018. The country is compliant under the 2011 Rules.

Timeline