Who gains from saving nature
Ledger 1 : 33 — For each dollar financing nature-based solutions in 2023, about $33 financed activities harmful to nature. (UNEP)
Cases / Oil spill · Chad · 2013–2015

CNPC crude dumping in the Bongor basin: US$1.2 billion fine and US$400 million settlement

Nature's voice · report
In July 2013 crude oil was found dumped in pits at Koudalwa in my Bongor basin.
Did nature suffer? Yes. Harm is on record. Disputed
Recorded
  • Chad's government reported in May 2014 that several dozen of my sites had been subjected to dumping harmful to the environment, and that polluted sites had been filled without prior treatment. Energy Daily
  • CNPC said in August 2014 that the leaked oil was a small amount and that its own analysis showed no penetration into my groundwater. BizNews
What the record lacks: 4 none on record · 7 disputed · 1 unclear See the gaps
Accounts of the harm differ
Whether CNPC broke environmental rules
  • Government and regulators Chad's Oil Minister: "We found flagrant violations of environmental standards by the company"; the company intentionally let the oil spill to cut costs. Stabroek News
  • Company or project CNPC: Denied breaking environmental rules and asked for cancellation of the decision. BizNews
Scale of the dumping
  • Government and regulators Chad's government: Dumping at several dozen sites. Financial Afrik
  • Company or project CNPC: A small amount of leaked oil; its own analysis showed no penetration into groundwater. BizNews

Chad suspended the operations of a CNPC unit in 2013 after crude oil was found dumped in pits at Koudalwa, fined it US$1.2 billion in March 2014 and withdrew five exploration permits. A settlement of US$400 million was signed in October 2014; no court ruled on liability.

US$1.2bn vs US$400mGovernment fine of March 2014 vs settlement of October 2014
The fine was imposed by Chad's Environment Minister and contested by CNPC; the settlement was negotiated. No court ruled on liability.

Status As of the 7 January 2018 MOU recorded by AidData: the October 2014 settlement in force; no court ruled on liability.

What?
Chad suspended a CNPC unit after crude oil was found dumped in pits at Koudalwa, fined it US$1.2 billion and withdrew its exploration permits, then settled for US$400 million and stakes in the fields; the company and the Treasury recorded the payment under different headings. Alwihda Info
Where?
Koudalwa area, Bongor basin (Permit H), southern Chad, about 200 km south of N'Djamena; fields named include Rônier, Mimosa and Baobab. Fox News
When?
Dumping found July 2013; suspension 13 August 2013; fine March 2014; permits withdrawn August 2014; settlement protocol 24 October 2014. ITIE Tchad
Who?
Gained
  • Government of Chad — US$400 million settlement payment and a 10% stake in all producing fields; extraordinary receipts were 25% of oil-sector receipts in 2014 ITIE Tchad
  • SHT — 10% of the CNPCI production permit ITIE Tchad
  • CNPC — The five cancelled permits returned on new terms and the right to export crude from seven fields through the Chad–Cameroon pipeline Alwihda Info
Lost
  • CNPC and Cliveden — US$400 million paid under the settlement ITIE Tchad
Harmed
  • Sites at Koudalwa and other locations in the Bongor basin — Crude oil dumped in pits; several dozen sites according to Chad's government Energy Daily
  • Local workers — According to Chad's Oil Minister, they removed oil without protective gear Fox News
Why?
Chad's Oil Minister said the company intentionally let the oil spill to cut costs and lacked clean-up equipment. CNPC denied breaking environmental rules. Fox News
How?
Chad imposed administrative sanctions, filed a complaint in N'Djamena and pursued ICC arbitration; a settlement protocol ended the proceedings with a US$400 million payment and state stakes. Alwihda Info
6 of 6 questions answered from the record

What happened

The record, in order.

In July 2013 crude oil was found dumped in pits at Koudalwa, in the Bongor basin of southern Chad, about 200 km south of N'Djamena, where a unit of China National Petroleum Corporation (CNPC) operated Permit H. On 13 August 2013 Chad suspended all operations of the CNPC unit. Oil Minister Djerassem Le Bemadjiel told AFP: "they intentionally let it spill in order to cut costs", and said the company lacked clean-up equipment and had local workers remove the oil without protective gear. The suspension was lifted in October 2013.

In March 2014 the Environment Minister fined CNPC International Chad (CNPCIC) US$1.2 billion. A May 2014 letter, as reported by AFP, cited "a serious violation of regulations on the protection of the environment" and said several dozen sites "have been subjected to dumping harmful to the environment". On 21 May 2014 all CNPC exploration and drilling was suspended. A decree of early August 2014 withdrew five exploration permits, and on 8 August 2014 a complaint was filed at the N'Djamena Court of First Instance.

CNPC denied breaking environmental rules, asked for cancellation of the decision and said the government had not provided a breakdown of damages. It described the leaked oil as a small amount and said its own analysis showed no penetration into groundwater. On 24 October 2014 a settlement protocol was signed: CNPC paid US$400 million, the state took a 10% stake in all producing fields, the five permits were returned on new terms with Chad as a shareholder, and the ICC Paris proceedings and the N'Djamena complaint were withdrawn. A production sharing contract for Permit H followed on 7 November 2014, and CNPC exports through the Chad–Cameroon pipeline began in January 2015.

The EITI Chad 2014 report records that CNPCI described the US$400 million as a signature bonus of US$350 million plus US$50 million for a social fund, while the Treasury declared it as an environmental penalty. The EITI scoping study states the sum was paid by Cliveden, CNPC's partner in Permit H, and that it, with US$100 million from settling Chevron's tax liabilities, made up 25% of oil-sector receipts in 2014.

  1. 2013Crude found dumped in pits at Koudalwa (July); operations of CNPC's local unit suspended (13 Aug); suspension lifted (October)
  2. 2014US$1.2 billion fine (March); exploration and drilling suspended (21 May); five permits withdrawn by decree (early August); complaint filed in N'Djamena (8 Aug); settlement protocol signed (24 Oct); production sharing contract for Permit H (7 Nov)
  3. 2015CNPC exports through the Chad–Cameroon pipeline begin (January)
  4. 2018Five-party MOU of 7 January records the government's outstanding debt at US$259.5 million

What was said

Claims, in the words of those who made them.

“they intentionally let it spill in order to cut costs”

Djerassem Le Bemadjiel, Oil Minister, to AFP · August 2013 · Fox News

“We found flagrant violations of environmental standards by the company”

Djerassem Le Bemadjiel, Oil Minister, on state radio (Reuters) · August 2013 · Stabroek News

“Amicable negotiations are no longer possible.”

Abdoulaye Sabre, Government Secretary-General · August 2014 · Al Jazeera

“cancellation of this decision and an ongoing effort to resolve this negotiation amicably”

CNPC, as quoted by Reuters · August 2014 · BizNews

“In addition to the 400 million dollars, the Chadian State will take a 10% stake”

Oil Minister, after the settlement, as reported by Jeune Afrique · October 2014 · translated from French · Alwihda Info

Where accounts differ

Each party's account, side by side, with its source. The record does not settle these points; it shows them.

Whether CNPC broke environmental rules
Government and regulators
Chad's Oil Minister

"We found flagrant violations of environmental standards by the company"; the company intentionally let the oil spill to cut costs.

Stabroek News
Company or project
CNPC

Denied breaking environmental rules and asked for cancellation of the decision.

BizNews
Scale of the dumping
Government and regulators
Chad's government

Dumping at several dozen sites.

Financial Afrik
Company or project
CNPC

A small amount of leaked oil; its own analysis showed no penetration into groundwater.

BizNews
What the US$400 million payment was
Company or project
CNPCI

A signature bonus of US$350 million and US$50 million for a social fund.

ITIE Tchad / Moore Stephens
Government and regulators
Chad's Treasury

An environmental penalty.

ITIE Tchad / Moore Stephens
Size and form of the state's stake
Press and investigations
Jeune Afrique; EITI

A 10% stake in producing fields.

Alwihda Info
Government and regulators
EITI scoping study

A 25% production-sharing share in fields in the exploration phase; AidData describes the 25% as a back-in option.

ITIE Tchad

How it looked

What was shown, beside what was recorded.

Shown

  • Chad's Oil Minister (August 2013): the company intentionally let the oil spill to cut costs and its behaviour was unacceptable.
  • Chad's government (May 2014 letter, as reported by AFP): several dozen sites subjected to dumping harmful to the environment; polluted sites filled without prior treatment.
  • CNPC (August 2014): a small amount of oil leaked, its own analysis showed no penetration into groundwater, and it had not broken environmental rules.
  • Chad's Oil Minister (October 2014): the state would take a 10% stake in addition to the US$400 million.

Recorded

  • Chad's government fined CNPC International Chad US$1.2 billion in March 2014; CNPC contested it.
    BusinessDay (Nigeria)
  • A settlement of US$400 million was signed on 24 October 2014; the N'Djamena complaint was withdrawn and the ICC Paris proceedings ended without an award.
    Alwihda Info
  • The company recorded the US$400 million as a US$350 million signature bonus and US$50 million for a social fund; the Treasury recorded it as an environmental penalty.
    ITIE Tchad / Moore Stephens
  • Extraordinary receipts, the US$400 million and US$100 million from settling Chevron's tax liabilities, were 25% of oil-sector receipts in 2014.
    ITIE Tchad
  • No court ruled on liability.
    Alwihda Info

Who gained

Money that reached nature, beside money that stayed elsewhere.

Reached nature or the ground

Not published
Spending on remediation of the dumping sites—
None on record; the EITI 2014 report records the payment without a remediation allocation.

Gained elsewhere

Not totalled
Fine imposed by the Environment Minister, March 2014$1.2bn
Contested by CNPC.
Settlement payment, October 2014$400m
Company: US$350 million signature bonus plus US$50 million social fund; Treasury: environmental penalty.
Currency: USD · Window: 2014. All figures cover the same period. * Estimate built from cited figures.

Responses on record

  • cnpc (August 2014): Denied breaking environmental rules, called the leaked oil a small amount with no penetration into groundwater, asked for cancellation of the decision and an amicable resolution, and said the government had not provided a breakdown of damages. · BizNews
  • chad-government (August 2013 and August 2014): Oil Minister: the company intentionally let the oil spill to cut costs; its behaviour was unacceptable. The permit withdrawal was to avoid further environmental degradation, not to make place for other companies. · Al Jazeera

In court and with insurers

Every proceeding and every insurer decision on record.

Lawsuits and rulings

  1. 2013–2014Settled$1.2bn fine imposed, March 2014
    Administrative sanctions against CNPC International Chad
    Ministry of Petroleum; Ministry of Environment, Chad · Administrative · Government of Chad → CNPC International Chad (CNPCIC)

    Suspension of all operations, August to October 2013; fine of US$1.2 billion, March 2014; suspension of exploration and drilling, 21 May 2014; withdrawal of five permits by decree, August 2014. The sanctions were resolved by the October 2014 settlement protocol. BusinessDay (Nigeria)

  2. 2014–Settled
    Complaint at the N'Djamena Court of First Instance
    N'Djamena Court of First Instance · Civil · Chad's petroleum ministry → CNPC International Chad

    Complaint filed on 8 August 2014 for "dégradation de l'environnement et mise en danger de la vie d'autrui" (environmental degradation and endangering the lives of others); withdrawn under the October 2014 settlement. No judgment. Financial Afrik

  3. 2014Settled
    ICC arbitration over the unpaid fine
    ICC International Court of Arbitration, Paris · Arbitration · Government of Chad → CNPC

    Chad's claim over the unpaid fine ended with the October 2014 settlement. No award. Alwihda Info

Insurers

No insurer decision on record.

What nature saw

Outcomes measured on the ground, and nature's note.

Nature's report opens this page. Below: further outcomes measured on the ground.

Fine imposed
US$1.2bn
March 2014; contested by CNPC
Settlement paid
US$400m
October 2014; classified differently by the company and the Treasury
Sites with dumping
several dozen
According to Chad's government; CNPC described a small amount of leaked oil
State stake in producing fields
10%
Under the October 2014 settlement

What we don't know

Undisclosed, unproven, untried: recorded as data.
No court caseKey earnings undisclosed

Nature

Money

  • None on record Spending on remediation of the dumping sites — None on record; the EITI 2014 report records the payment without a remediation allocation.

Accounts

  • Disputed What the US$400 million payment was
  • Disputed Size and form of the state's stake

Record

  • Disputed Disputed: the scale of the dumping. Chad's government reported dumping at several dozen sites; CNPC described a small amount of leaked oil with no penetration into groundwater.
  • Disputed Figures differ: AFP gives the March 2014 fine as US$1.2 billion (EUR 880 million); Financial Afrik gives it as EUR 800 million.
  • Disputed Disputed: CNPC stated that the government had not provided a breakdown of damages to justify the claim.
  • None on record None on record: a court ruling on liability. The N'Djamena complaint was withdrawn and the ICC Paris proceedings ended in the settlement without an award.
  • None on record None on record: independent measurement of the volume spilled, the area affected, soil or groundwater contamination, or the clean-up result.
  • Unclear None on record: spending of any part of the US$400 million on remediation; the EITI 2014 report records the discrepancy in how the payment was classified and does not say any of it went to remediation.
  • None on record None on record: insurance covering the dumping.

Did the harm stop?

The operations of CNPC's local unit were suspended from 13 August to October 2013, and exploration and drilling from 21 May 2014. CNPC exports through the Chad–Cameroon pipeline began in January 2015.

Who paid?

Cliveden, CNPC's partner in Permit H, paid the US$400 million settlement according to the EITI scoping study; the Treasury recorded it as an environmental penalty. How much, if any, went to the affected sites is not on record.

Sources

Voices on record: — Company or project✓ Government and regulators— Courts✓ Press and investigations— Communities and civil society✓ Researchers

Government and regulators

Press and investigations

  3. Chad suspends CNPC exploration and drilling
    BusinessDay (Nigeria) · 2014-05-23

Researchers

Connected cases

Related matters, and cases linked to this one through the same organisations, with the role each played in both.
Terms used on this page

Science and environment

Groundwater
Water held underground in soil and rock, drawn through wells.

Law and courts

Arbitration
A private dispute process in which an appointed arbitrator, instead of a court, decides the case.
Similar cases
Oil, gas and coal operations · Oil spill · Niger · 2026
Goumeri W-8 well eruption at the Agadem oil block, Niger (2026)
Same type: Oil, gas and coal operations, Oil spillSame region
War and military activity · Oil, gas and coal operations · Oil spill · Burning: incineration, open burning, flaring, fires · Libya · 2014–2026
Oil-facility fires and leaks in Libya's conflict: Es Sider, Ras Lanuf, Zawiya
Same type: Oil, gas and coal operations, Oil spillSame region
Oil spill · Oil, gas and coal operations · Water use · Venezuela · 2010–2026
Lake Maracaibo chronic oil leaks
Same type: Oil spill, Oil, gas and coal operationsHarm to nature disputed
Oil, gas and coal operations · Oil spill · Colombia · 2018–2021
Ecopetrol Lizama well blowout (Colombia)
Same type: Oil, gas and coal operations, Oil spill
Oil spill · Nigeria · 1958–2026
Ken Saro-Wiwa and the Ogoni Nine; Wiwa v Shell
Same type: Oil spillSame regionCourt: settled
Oil spill · Nigeria · 2008–2022
Niger Delta oil spills and sabotage attribution (Shell, Eni)
Same type: Oil spillSame regionCourt: settled