Chad refinery shuts down again amid 'dialogue of the deaf'

Chad’s 50,000-b/d Djarmaya refinery, 40 km north of the capital Ndjamena, has been shut down by government officials again due to a dispute over the price of oil with supplier China National Petroleum Corp. International (CNPCI).

“The secretary-general of the trade and industry ministry has closed the Djarmaya refinery,” Chad’s state media announced. The refinery is co-owned by the CNPCI 60% and Chad’s state-owned Societe des Hydrocarbures du Tchad (SHT) 40%.

A government source said the facility was closed due to a disagreement over the price of oil between the Chadian authorities and CNPCI, the second closure in less than 6 months for the same reason.

“There is a dialogue of the deaf between the government and the Chinese to the point where industrial units had begun to close down for lack of oil,” a government official told AFP.

Last September, the Societe de Raffinage de N’Djamena (SRN) said the refinery would not operate for 40 days, starting on Sept. 25, due to a disagreement over price.

The refinery agreed a retail price of 41¢/l. of refined petroleum with the government, but World Bank figures show that refined products are sold in the country at a retail price of around $1.31/l.

“This discrepancy caused the refinery to operate at a loss of $4.7 million by end-August,” said IHS Global Insight analyst Marne Beukes, who added that “the loss of operations at the refinery will inevitably result in fuel shortages in Chad, which will require costly imports.”

Noting that CNPCI has become a vital investor in the country and is developing the Mimosa and Ronier oil fields as well as investing heavily in developing Chad's downstream sector, Buekes said Chad can “ill-afford a breakdown in its relationship with this important investor.”

The Djarmaya refinery, started up in June 2011, is designed to process oil from wells in the southern Bongor region through a 311-km pipeline.

In 2009, China National Petroleum Corp. (CNPC) announced plans to start the first refinery in Chad in partnership with the country’s government by 2011 (OGJ Online, Aug. 27, 2009).

The parties signed a memorandum of understanding on Aug. 24 for the N'Djamena refinery to establish a joint venture, secure a loan, and apply for a preferential export buyers’ credit (OGJ Online, Aug 29, 2009).

According to OGJ, Chad has 1.5 billion bbl of reserves and produces 120,000 b/d of oil. Chad exported 36.7 million bbl of its oil from January to November 2011, according to a statement issued by Cameroon-based Pipeline Pilot Steering & Monitoring Committee (PSMC).

Chad transports its crude through the 1,080-km Chad-Cameroon Pipeline, which is operated by ExxonMobil Corp., Chevron Corp., and Malaysia's Petroliam Nasional Bhd.

The line extends from the southern Chad oil fields in Doba to Cameroon's southeastern Atlantic port of Kribi. About 80% of the pipeline runs through Cameroon, giving Cameroon rights to royalties and monitoring of the tunnel.

Contact Eric Watkins at

Related Articles

Puma Energy completes purchase of Murco’s UK refinery, terminals

07/02/2015 Singapore-based Puma Energy Group Pte. has completed its purchase of UK midstream and downstream assets from Murco Petroleum Ltd., a subsidiary of ...

SIBUR plans MTBE expansion at Togliattikauchuk

07/01/2015 Russian conglomerate OAO SIBUR Holding, Moscow, has started preparatory work for a project designed to expand production capacity for methyl tertia...

OxyChem-Mexichem JV lets contract for ethylene storage

06/30/2015 Ingleside Ethylene LLC, a 50-50 joint venture of Occidental Chemical Corp. (OxyChem) and Mexichem SAB de CV (Mexichem), has let a contract to CB&am...

RIL’s Jamnagar refinery due maintenance

06/29/2015 Reliance Industries Ltd. (RIL), Mumbai, is planning to shut down a crude unit for scheduled maintenance at its 1.24 million-b/d Jamnagar refining a...

OGJ Newsletter


BP: US surpassing Saudis in oil output among world's 'tectonic' energy shifts in 2014

06/29/2015 An eventful 2014 in the world oil and gas markets was headlined by the US overtaking Saudi Arabia as the world's biggest oil producer and surpassin...

Gazprom Neft lets contract for Moscow refinery

06/29/2015 Russia's JSC Gazprom Neft has let a contract to Tecnimont SPA, a subsidiary of Maire Tecnimont SPA, Milan, for engineering, procurement, and constr...

Marathon commissions unit at Kentucky refinery

06/29/2015 Marathon Petroleum Corp. (MPC) has commissioned a 35,000-b/d condensate splitting unit at its 242,000-b/d Catlettsburg, Ky., refinery to boost the ...

Petronas lets contract for RAPID complex

06/26/2015 Malaysia’s state-run Petronas, through a contractor, has let a contract to Industrial Cooling Solutions Inc. (ICS), Lakewood, Colo., to build a 28-...
White Papers

Definitive Guide to Cybersecurity for the Oil & Gas Industry

In the Oil and Gas industry, there is no single adversary and no single threat to the information tech...

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by
Available Webcasts

Better Data, Better Analytics, Better Decisions

When Tue, Oct 27, 2015

The Oil & Gas industry has large amounts of data stored in multiple systems which are purpose built for certain tasks. However, good decisions require insights based upon the data in all of these systems. These systems in turn do not talk to each other. So the process of analyzing data, gaining insights, and making decisions is a slow one and often a flawed one. Good decisions require accurate analytics and accurate analytics require superior/sustainable data quality and governance. This webinar focuses on:

  • The importance of data quality and governance
  • How technological advances are making data quality and governance sustainable in order to get the accurate analytics to make solid decisions.

Please join us for this webcast sponsored by Seven Lakes Technologies and Noah Consulting.


Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected