Taiwan awaits first Chad crude oil shipmentChina | 13 Nov 2020 2:42 pm
State-owned oil supplier CPC Corp., Taiwan is expecting to receive its first shipment of crude oil from its production facility in Chad next month, according to a company spokesperson.
Since production began at the oil field in Chad in February, it has yielded 1.4 million barrels of crude, 1 million of which is being shipped to CPC's Talin Refinery in Taoyuan, according to CPC spokesman Chang Ray-chung, CNA reports.
Given Taiwan's heavy reliance on imported energy due to its lack of domestic resources, CPC signed an agreement with Chad in 2006 for exploration rights, in a bid to achieve self-sufficiency.
After five years of exploration, CPC said, it found new oil and gas reserves in Chad in 2011, and six years later it obtained a 25-year license for development of Oryx Oilfield in the African country.
CPC owns 35 percent of the oil exploration rights to the Chad project, while China CEFC Energy Co. holds 35 percent, and the Chad government the remaining 30 percent, said Fan Chen-hui, who is in charge of CPC's international exploration and production business.
Currently, the oilfield yields about 5,500 barrels of crude oil and 14,000 cubic meters (m3) of natural gas per day, according to Fan.
It is CPC's first overseas oilfield operation in the nearly four decades since it began investing in exploration abroad, Fan said.
The maximum daily production at Oryx Oilfield is about 9,600 barrels of oil and 35,000m3 of natural gas, Fan said, adding that there is plenty of room for CPC to expand production.
When CPC receives its first oil shipment from Chad, it will decide whether to continue shipments to Taiwan from that source, depending on international oil prices, Fan said.
Meanwhile, CPC has no plans to ship natural gas from Chad to Taiwan, as that resource is being used mainly for power generation at the oilfield, he said.
The company has invested in oil exploration and production at eight sites in six countries -- the United States, Indonesia, Chad, Niger, Ecuador, and Australia--and the projects in Australia and Ecuador are now in the production phase, according to Fan.
CPC is also assessing new investment projects but will move toward investment only after international oil prices rebound to above oil production costs, he said.