Geointelligence Network

1 - Chad Geological Context

Chad is a landlocked country with a difficult post colonial history. Hence the understanding of its geology is less developed than in other parts of Africa due to the lack of field work and detailed aerial surveys during the civil war.

Nevertheless, the Chadian territory is known for interesting natural resources assets:

• First the country shares with neighbours different sedimentary basins known for oil and gas potential:

1. The Koufra – Erdis basin in the north shared with Libya.
2. The Chad Basin in the center - west shared with Niger, Northern Nigeria and Cameroon.
3. The Sud Basin in the south shared with Central African Republic and Sudan.

• Second, the country has mining potential for gold, uranium and base metals.

New geological map of Chad published in 2009 (© BRGM)

 2 - Oil Projects History

The beginning of oil exploration in Chad dates back to the 1950's and the first discoveries happened in the 1960's.

For years all possible development projects faced the difficult reality of:

1. a political situation and a fiscal system which did not attract potential investors;
2. a landlocked country which needed a large pipeline project to export the potential oil;
3. Oil prices too low to create a favorable environment.

In the 90's the Chadian government showed its willingness to create the conditions of possible exploitation. The World Bank saw this as a flagship project to build economic development without corruption and with protection of future generations. Hence after the vote by the Chadian Assembly of a Petroleum Law, discussions between World Bank, Chad and Cameroon governments and the private consortium led to the decision in 1999 and 2000 to finance the project. This is detailed in the World Bank Paragraph.

Hence the "The Esso Chad Doba Exploitation" started in 2000 simultaneously with the gigantic Doba to Kribi pipeline project. It is detailed in the Esso Chad Paragraph. 

The Chadian government continued in parallel its efforts to promote the potential of other fields with various partners. For a while, the Taiwanese Oil Company CPC (through its international subsidiary OPIC) looked to be a partner of choice, especially as Chad was one of the last countries in the world to have diplomatic ties with Taiwan and not with the People Republic of China.

But as CNPC, one of the leading Chinese Oil Companies became more and more involved in Chad, a diplomatic change of alliances led in 2006 to a massive Chinese investment in Chad, first on the development of various fields including Bongor, and later on a joint venture on the refinery project. This is detailed in the Chinese Partnership Paragraph.

In 2008, the Chadian government created its own national oil company: Société des Hydrocarbures du Tchad - SHT. Its role is to promote the development of oil activities in Chad, to hold the Chadian parts in production sharing agreements and eventually to develop alone small fields like Sedigi.

The Taiwanese company CPC kept an interest on two blocks, including Chari West Block III where they announced a major gas discovery in January 2011.

Two smaller companies, a Canadian (Griffiths Energy) and an American (ERHC Energy) also signed agreements with the Chadian government on potential oil fields. 

FURTHER READINGS

In order to get a complete view of the diverse informations available, we provide here a short selection :

• Report in chadian press on the French geological survey work done in 2008-2010 (in french)
• SIGAFRIQUE Technical Report (2005) (in french)
• USGS Geological Map of Africa (Open File Report 97-470A) (in english)

Last Updated ( Thursday, 14 March 2013 )