Chad is turning decisively toward China to revive its struggling oil sector as declining production and the exit of major Western firms have left the landlocked Central African nation seeking new investment for a $4.5 billion refinery upgrade.
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.
Leading the expansion is the China National Petroleum Corporation, which officials say will scale up operations in existing southern fields and advance plans for a second refinery in eastern Chad. Khadidja Hassane Abdoulaye, Chad’s secretary of state for petroleum, mines and geology, said their partner CNPC has positioned itself to take over the expansion of the existing refinery, which is already under way, and they are also in favor of constructing a new, fast-track facility.
The Djarmaya refinery, north of the capital N’Djamena, currently has a capacity of eight million barrels per year. CNPC is already active in the oil sector through its presence in oil exploitation in the southern basin and at exploration fields, exploiting the oil and refining it, Abdoulaye added.
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.
The expansion comes after Western firms including ExxonMobil, Chevron, and Malaysia’s Petronas exited Chad over disputes surrounding asset ownership, taxation, and shifting corporate strategies. Their departure created an opening for Beijing to assume a central role in Chad’s oil sector.
Chad’s strategy mirrors broader regional dynamics. The Alliance of Sahel States comprising Mali, Burkina Faso, and Niger has distanced itself from former Western partners, turning instead to China and Russia for investment, security, and diplomatic support. 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.
Source: africa.businessinsider.com