Chad is shifting decisively towards China in a bid to revive its oil industry, following years of declining production and the exit of major Western oil companies. The landlocked Central African country has embarked on a US$4.5 billion plan to upgrade its existing refinery and build a second facility, positioning the country for a significant transformation in its energy sector.
Currently producing around 150,000 barrels of oil per day, Chad has seen its oil revenues stagnate amid infrastructural constraints and the withdrawal of firms such as ExxonMobil, Chevron and Petronas. These companies left Chad amid disputes over taxation, asset ownership and operational terms, creating an opening for China’s state-owned China National Petroleum Corporation (CNPC) to take the lead in the country’s oil renewal efforts.
Under the agreement with CNPC, Chad will expand its Djarmaya refinery, north of the capital N’Djamena. The existing plant has a capacity of roughly eight million barrels per year, but the upgrade seeks to raise output considerably and reduce Chad’s dependence on imported refined products. In parallel, plans are being finalised for a new, fast-track refinery in eastern Chad, which will significantly boost local refining capacity and create new jobs.
Chad’s Secretary of State for Petroleum, Mines and Geology, Khadidja Hassane Abdoulaye, said that CNPC is already active in southern oil fields and is positioned to accelerate both expansion and new construction. “Our partner CNPC has positioned itself to take over the expansion of the existing refinery … and they are also in favour of constructing a new, fast-track facility,” she said. Finance Minister Tahir Hamid Nguilin described the move as “timely and valuable,” stressing the importance of local refining capacity for economic resilience.
This strategic shift aligns with a broader pattern across Africa, where several resource-rich countries are turning away from traditional Western energy partners and engaging China and Russia for capital, technology and diplomacy. Chad joins nations in the Sahel and beyond re-evaluating their relationships with global oil majors and seeking new development models.
For Chad, the project is more than just expanding its refinery capacity – it is an effort to redefine its economic trajectory. The oil industry has historically underpinned the nation’s finances; improving refining infrastructure and ensuring that more of the value-chain remains within the country are seen as pivotal steps. By strengthening its energy sector, Chad hopes to generate more revenue, build local industry and enhance self-sufficiency.
However, experts note that such major infrastructure undertakings carry significant risk. Being land-locked and energy-dependent, Chad faces logistical, governance and market challenges. Ensuring that the venture delivers on time, remains cost-effective and delivers local benefits will be crucial to its success.
As CNPC begins to move at pace, the world will be watching whether Chad can reverse its oil slide, and whether China’s deepening foothold in African energy infrastructure continues to reshape the continent’s extractives landscape.
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