Oiling the Gears
Development of African nations gains momentum with help from a Chinese petroleum giant
Deep in the interior of Central Africa lies the Republic of Chad, a country dependent on agriculture for most of its revenue. Below the surface, it has abundant reserves of petroleum, but it was not until the Chinese oil and gas giant China National Petroleum Corp. (CNPC) began production there in 2011 that the country finally realized energy self-sufficiency.
When CNPC first set foot in Chad 15 years ago, domestic oil consumption in the country was heavily dependent on imports. In September 2007, a bilateral agreement was reached to build a joint-stock refinery plant, marking the starting point of ChinaChad petroleum cooperation.
As the Ndjamena refinery plant went into production in June 2011, President Idriss Déby Itno described how his country had won the victory of energy independence, which he attributed to Chad’s significant partnership with China.
Now, the CNPC operation covers the entire petroleum industrial chain in Chad, ranging from exploration and development, pipeline transportation, refining and storage, project construction and technology services.
This type of success story is not confined to Chad. CNPC’S cooperation with Sudan began back in 1995, and that project has now become the largest and most successful CNPC overseas venture. In Niger, a complete petroleum industrial system has taken shape under a partnership with CNPC, allowing the country to not only realize oil self-sufficiency, but also earn foreign exchange through oil exports. Now, the petroleum industry is the backbone of the local economy. Besides Chad and Niger, the CNPC West African branch has also seen its operations spread into Algeria, Mozambique and Tunisia.
Solid progress
With support from a Chadian partner and its stakeholders, CNPC has developed two exploration and extraction projects, two crude oil pipeline projects and the Ndjamena refinery that can produce gasoline, diesel, aviation fuel, fuel oil, liquefied natural gas and polypropylene.
By the end of July this year, the company had developed six oil fields in Chad and transported 13.24 mi l l i on tons of crude oil. Its annual oil production has maintained steady growth in recent years and i s expected to reach 4 million tons t h i s year. Company data show that in the near future, petroleum exploration and development capacity in Chad will reach 6 million tons.
Going from risk exploration to largescale development in Chad, CNPC says it routinely follows the principle of seeking quality and efficiency while maintaining sustainable development.
“CNPC’S oil exploration and development activities in Africa are guided by the concepts of mutual benefit and win-win cooperation. The company strictly follows local policies, laws and regulations, and upholds a multinational corporate culture of mutual respect, openness and compatibility,” said Chen Shudong, General Manager of CNPC International, West Africa Ltd. (Chad).
Chad has now seen a steady domestic supply of oil products from the Ndjamena refinery, and exports part of the output to neighboring countries, laying a solid foundation for the nation’s economy and strength.
In Niger, CNPC’S West Africa branch had paid over $1 billion in taxes to the government by the end of 2017. As of May this year, the company has produced 5.28 million tons of crude oil in the country, according to CNPC statistics.
Corporate responsibilities
In Sudan and South Sudan, CNPC has been fulfilling its social responsibilities by engaging in well-planned activities to provide public benefits. The company has invested $120 million to support the development of agriculture, education, culture, medical care and infrastructure, benefiting more than 2 million African people.
By promoting the integration of diverse cultures within the company, employees with different cultural backgrounds can understand and trust each other and live in harmony with local communities, said Chen.
In the hinterland of Niger in the Sahara Desert, the shortage of water is an obvious