Industries such as those in the oil extraction sector can generate considerable income. Therefore, applying a tax system that captures a greater part of the rent while providing incentives for exploration and development of new oil fields by international oil companies (IOCs) is a priority for developing nations that are also oil producers. There is a specific tax system in the oil sector because of the sector’s special features, including massive investment and necessarily complex technology controlled by IOCs.1 The issue of rent sharing and, therefore, the tax system is a major challenge for Chad, whose economy is heavily dependent on oil. In 2013 oil accounted for over 70 percent of Chad’s tax revenues, 90 percent of total exports, and 30 percent of the nominal gross domestic product (GDP).