Chad/Cameroon project's production, exports up sharply
Crude oil production from the Chad/Cameroon Development Project exceeded 200,000 b/d at times during the April-June 2004 quarter, said operator Esso Exploration & Production Chad Inc.
With second quarter production average exceeding 180,000 b/d, the project exported 33.2 million bbl in 35 tankers, or 60% more oil than in the first quarter of 2004, through the terminal at Kribi, Cameroon (OGJ Online, May 18, 2004). Peak production is estimated at 225,000 b/d.
Kome and Miandoum field were almost fully developed at the end of June, and the drilling focus was on Bolobo, third of the project's original three fields to be brought on line. First oil from Bolobo field is expected to reach the export pipeline in the July-September quarter (OGJ, Aug. 24, 2004, Newsletter).
Drillers had sunk 168 wells, about two-thirds of the planned total, 145 of which were available for production. Progress was excellent despite the rainy season.
The consortium signed a new convention with the Chad government during the quarter to cover future exploration and development opportunities. The government negotiated increases in royalty payments on oil extracted from any new field development other than the fields covered under the 1988 convention. Chad president Idriss Deby approved the convention, which is subject to a vote in the National Assembly.
The London bank that controls escrow accounts for royalty payments disbursed the first payments to Chad in July 2004.
Esso Chad said it has established a world class oil industry technical training institute at the Kome central oil field facility.
Petronas of Malaysia and ChevronTexaco also have interests in the project.
Other elements
Seismic surveys continued during the quarter in several areas outside the three oil fields.
Early results of exploration that began in 2001 have shown promise, but the consortium has not yet decided to proceed with any additional oil field construction.
The consortium and host countries have agreements with the World Bank that development of new sources of oil to be transported through the export pipeline will comply with the principles of the environmental management plan developed for the three original oil fields.
The project's drilling group compiled a record of three years without a lost time accident. Work during this time covered 11.5 million work-hr. The group includes the drilling contractor Pride Forasol, oil well service company Schlumberger, and other contractors.
About half of the project's stored used motor oil in Chad was injected in small increments into the pipeline at Pump Station 1, leaving 480,000 l. in dedicated storage tanks at the waste management facility.
The project strictly enforces a rule about wearing long-sleeved shirts and long pants even in the West African heat to prevent the mosquito bites that spread malaria.
Chad law requires that 72% of the country's revenue from the project be allocated to education, health, infrastructure, and agriculture. The general fund to cover project administration costs gets 13%, 10% goes to a future generation fund, and 5% is dedicated to the oil fields area.
The first project to receive funds from the Chad-Cameroon project is a paved road from the capital N'Djamena to Abeche, which will cut travel time to 6 hr from 3 days.
Abeche is the only commercial center in northern and northeastern Chad. It has also become the base for agencies attempting to provide relief to camps set up in northeastern Chad to aid people fleeing from the Darfur crisis in Sudan.
The project and Cameroon government attempted to limit access to an area near pipeline KP 572 where illegal logging vehicles cut deep ruts across the right-of-way.
