Chad first to disclose revenues from oil transit

Chad’s first EITI Report includes payments made to the government for oil transit through the 1070 km long Chad-Cameroon pipeline, making Chad the first country to disclose transit payments through EITI reporting. The pipeline is essential for exporting crude oil from the land-locked country to the coast of Cameroon.

The EITI Report, disclosing figures for the years 2007, 2008 and 2009, was published on 15 October 2012. In addition to government revenues from the pipeline, it also covers revenues from oil production and exploration.

High dependence on resource revenues

The report shows that the oil sector is a main contributor to the Chadian economy. Taxes, fees and royalties from oil exploration, production and transportation yielded 74% of government revenues in 2007, 81% in 2008 and 49% in 2009. Chad has accordingly earned between US$0.6 billion and US$1.9 billion annually from the sector. Profits or corporate tax has been the main source of income varying between 57% and 75% of total oil revenue.

Most oil is explored and produced by the Consortium operating in the oil region of Doba and composed of Esso Chad, Petronas Cagliari Chad and Chevron Chad. The Chinese companies CNPCI and Taiwanese OPIC also participated in EITI reporting. The Chad Oil Transportation Company and the Cameroon Oil Transportation Company disclosed taxes related to operating the pipeline.

Chad has been an EITI Candidate since 16 April 2010. The country has passed its 15 October deadline for completing EITI Validation, the quality assurance of a country's EITI process. Chad EITI has been unable to hire an EITI Validator and has requested an extension of its deadline for EITI Validation. The request is currently under discussion by the international EITI Board.

For further information about EITI in Chad, please visit the Chad country page on the EITI website.