Introduction to Chad

  • Former French colony until 1960, endured three decades of civil warfare as well as invasions by Libya before a semblance of peace was finally restored in 1990
  • Democratic elections since 1996
  • Legal System: Based on French civil law system and Chadian customary law
  • Area: 321 million Acres / 1,284,000 km2
  • Population: 10.8 million (2% growth rate)
  • Life Expectancy: 48.3 years
  • Religions: Muslim 53%, Catholic 20%, Protestant 14%, animist 7%, other 0.5%, unknown
  • 1.7%, atheist 3.1%
  • Literacy: Male: 40.8%; Female 12.8%
  • Terrain: North – Desert; Central – Plains; South - Tropical low lands
  • Economy: agriculture, oil, cotton, cattle, and gum Arabic
  • 80% of population relies on subsistence farming and livestock
  • Chad relies on foreign assistance and foreign capital for most public and private sector investment projects
  • GDP: US$18.56 billion
  • Industry 48% - largely oil
  • Services 32%
  • Agriculture 22%
  • Military expenditures as % of GDP 1.7% (down from 4.2%)
  • Oil contracts put into law; Government has never retracted an oil contract
  • First oil production in July,2003 when the export pipeline was completed

Country dependence on oil revenue

  • Oil royalties represent large portion of GDP; existing production declining 20% a year; Government is aggressively pursuing investment
  • Revised Petroleum Law and created a new PSC to attract foreign investment in late 2010

Previous experience in region

  • Executive management has previous experience in Chad, Nigeria, Angola, Libya

Stability within the Country

  • President Idriss Déby in power since 1990 and won recent election
  • Strong French presence (political, military, commercial)

Established oil production with key infrastructure in place

  • Esso Chad consortium currently producing 115,000 bbl/d
  • 30 years of extensive exploration work (through Esso Chad consortium) derisks blocks
  • COTCO/TOTCO pipeline with excess capacity
  • Chinese actively building infrastructure (paved roads, upgraded air strips, refinery, railway)