China National Petroleum Corporation (CNPC), the parent of PetroChina Company, has begun work on an oil pipeline in south-western Chad, according to state media reports.
Crude oil will be shipped from the Koudalwa field, about 300km south of N'Djamena, to the Djarmaya refinery north of the capital.
Chad started producing oil in 2003 and now generates about 170,000 barrels per day.
The southwestern Chari-Baguirmi region is estimated to produce 60,000 barrels per day.
The pipeline is scheduled to begin operations in 2011.