Chad Gears Up for New Investment Ahead of IAE 2024

While Chad boasts over 1.5 billion barrels of crude oil reserves – the tenth-largest in Africa – maintaining consistent production levels has proven challenging. Oil production in the country dropped to 68,000 barrels per day (bpd) in 2022, from 109,000 bpd in 2021. However, this decline presents opportunities for global investors and technology providers in enhanced oil recovery, asset optimization, as well as new exploration and development of Chad’s oil and gas resources – all of which will be explored at a dedicated country spotlight at the Invest in African Energy (IAE) forum in Paris.

Capitalizing on Chad’s gas resources, PetroChad Mangara (PCM), a subsidiary of independent producer Perenco, successfully launched gas-fired power from the Moundou Power Station in January 2023, a critical step forward for the country’s energy sector. PCM’s collaboration with Perenco’s technical department, and coordination with Chad’s state-owned Société des Hydrocarbures du Tchad (SHT) and Ministry of Hydrocarbons, underscores a multilateral commitment to leveraging the country’s natural resources for enhanced energy access.

IAE 2024 is an exclusive forum designed to facilitate investment between African energy markets and global investors. Taking place May 14–15, 2024 in Paris, the event offers delegates two days of intensive engagement with industry experts, project developers, investors and policymakers. For more information, please visit www.invest-africa-energy.com. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.

Additional developments include SHT’s acquisition of Petronas’ upstream and intermediate oil interests in 2023. The agreement involved transferring interests to the Doba oil field consortium, as well as the Chad Oil Transportation Company and Cameroon Oil Transportation Company, which oversee the Chad-Cameroon pipeline. The acquisition represents the country’s efforts to improve its capacity to operate assets critical to both the national economy and energy security.

Chad remains open to strategic partnerships aimed at developing its resources, notably in the Doba Basin, a cornerstone of the country’s oil production. Previously explored by industry giants ExxonMobil and Shell, the basin is estimated to hold significant untapped hydrocarbon potential and is home to the Kome heavy oil field, which contributes roughly 7% to the country’s daily output. Chad is actively seeking collaboration with local and international entities that share mutual interests in driving upstream exploration and harnessing the country’s oil and gas resources for added socioeconomic development and energy security.

Meanwhile, the country’s integrated N’Djamena Refinery, operated by PetroChina and jointly owned by the China National Petroleum Corporation and SHT, has been crucial in processing crude oil from the Doba Basin and is expected to maintain its capacity through 2030. Equipped with a crude distillation unit with a capacity of 20,000 bpd, the refinery’s operations remain integral to Chad’s supply of refined petroleum products. That said, new investment is critical to enhancing the refinery’s efficiency and expanding its capacity to meet growing demand.

Ongoing efforts to attract investment, modernize infrastructure and create a favorable operating environment highlight Chad’s moves toward progressive energy development. Initiatives like the Djermaya Economic City – where the government has introduced tax exemptions and streamlined customs processes to attract investment in manufacturing and logistics – reflect the country’s efforts toward economic diversification and investment promotion. Investors participating in the upcoming IAE 2024 forum will access first-hand insights into these initiatives, engage with key government officials and explore new opportunities across Chad’s evolving oil and gas landscape.