Inequality is a common concern, strongly perceived by people as well as by governments that redistribute resources through taxation and public expenditure. It is well known that economic growth in African countries is highly based on raw materials and natural resources, especially oil revenues in the case of Chad. In these circumstances, an important issue is to know the extent to which oil exploitation contributes to reduce poverty and inequalities countrywide. This study aims to investigate the effect of oil exploitation on poverty gap and inequality in Chad at the local level. Based on different databases collected at departmental level, the baseline identification strategy relies upon comparing oil producing and non-producing departments that are spatially close and institutionally similar by belonging in same region. The research uses several comparison cases to assess the effect of oil exploitation activity and oil revenues distribution policy across producing and non-producing departments on three socioeconomic outcomes: poverty incidence, extreme poverty incidence, and inequality of the consumption distribution (Gini coefficient).