Chad is among the poorest countries in the world. Around 55 percent of the population lives below the poverty line and about 36 percent of the population lives in extreme poverty. The opportunity to reduce widespread poverty provided by the dramatic increase in revenues has been, however, mostly missed to date. Chad's first National Poverty Reduction Strategy (NPRS - I) was adopted in June 2003, aiming towards a 50 percent cut in poverty by 2015. The objective of this report is to examine to what extent oil revenues have been used to achieve stated government priorities. It will examine the particular challenges that Chad faces in the management and use of its oil revenues, and provide suggestions on how oil resources might be better leveraged to achieve the country's development goals.