Snapshot Summary (PDF) Chapter 2 - Production & Construction (PDF) Five years after oil first entered the export pipeline in southern Chad, the project was approaching a milestone 300 shipments of oil with 266 million barrels sent to world markets. Crude oil output has been holding at about 131,000 barrels per day, made possible by the project’s production support effort. - The high pressure water injection program now has 28 wells online, helping to maintain needed pressure in the oil bearing formations. - A total of 227 well enhancement procedures were conducted in the last four quarters, 116 of them in the first half of 2008. - Drilling crews added 58 new production wells in the last 12 months, bringing the project inventory to 449 active production wells. The entire production support effort, including water injection, well enhancement procedures and additional oil wells: - Produces an estimated 75,000 barrels per day over the level that would be possible without those investments. - Has required the Consortium to dedicate about two-thirds of its project revenue to fund the complete array of production enhancements along with other production expenses. Chapter 3 - Reportable EMP Situations (PDF) Project environmental monitors recorded ten Environmental Management Plan non-compliance situations in the first half of 2008, four in the first quarter and six in the second quarter. All were Level I situations, the most minor level. No spills occurred during this reporting period. Chapter 4 - Safety (PDF) Project personnel celebrated two major safety achievements in the first half of 2008, representing tens of millions of work hours without a major accident in the workplace. - In Chad, where the project’s intensive drilling and construction activities take place, workers for EEPCI and TOTCO and their contractors completed two years without a lost time incident beginning in June, 2006. - In Cameroon, workers for COTCO’s pipeline operations and contractors completed more than five years without a lost time incident beginning in January, 2003. Chapter 5 - Consultation & Communication (PDF) The project held over 430 public consultation sessions so far in 2008, making a 12 month total of more than 820. Over 21,000 people attended consultation sessions in the last four quarters. Chapter 6 - Compensation (PDF) Individual land use compensation in cash and in-kind payments paid by the project totaled: - Over 635 million FCFA (over $1.4 million) in the last four quarters. - Over 11.7 billion FCFA (nearly $19.1 million) since the project began. Chapter 7 - Update: Land Use in the Oilfield Development Area (PDF) The work to mitigate land use impacts in the Oilfield Development Area achieved a series of key milestones in the first half of 2008. - The first village specific action plan has been completed and largely implemented. As a result, a severely affected village has been moved to a low impact category. - Last year’s backlog in the well pad reduction program has been cleared. A total of 516 well pad sites have been reduced in size and the surplus land has been returned for farming. - In a little more than two years, a total of 814 hectares has been reclaimed and returned to farming. The project’s total land use footprint has been reduced by 200 hectares. Chapter 8: EMP Monitoring & Management Program (PDF) The project achieved a major reduction in flaring with the installation of millions of dollars of compressor equipment. Flaring now averages less than 600,000 cubic feet per day of gas consumption, one-tenth of its former level. Divers found the offshore marine terminal teeming with fish and other marine life during an inspection in the second quarter of 2008. The divers found no defects and their dive work completed a year-long inspection program of the entire export system. The project worked with stakeholders during the second quarter to correct misunderstandings about disposal of waste containing some asbestos at the landfill site at Pump Station 3 in Bélabo. - The waste containing the asbestos was removed from the Floating Storage and Offloading vessel in preparation for an upgrade project that began in 2006. - The waste disposal site at Pump Station 3 is a designated Class 1 landfill, the most rigorous classification of environmental protection according to international standards. A small company in Chad has begun making EcoBriquettes from waste materials, including cardboard recycled from the project. If successful, the new source of fuel may reduce the cutting of trees for cooking fires, a major contributor to desertification in Chad. Chapter 9 - Local Employment (PDF) Wages paid to national workers for the last 12 months totaled 22.7 billion FCFA ($50.6 million). - Chadians and Cameroonians combined held just over 89% of the project’s direct employment jobs at mid-year 2008. - About 70% of the Chadians and Cameroonians working for the project held skilled or semiskilled positions at mid-year 2008. Another 6% held supervisory positions. Chapter 10 - Local Business Development (PDF) The project’s purchases of goods and services from local suppliers totaled nearly 121 billion FCFA (about $268 million) for the last 12 months. - In Chad, four quarter local business spending totaled 96.4 billion FCFA (approximately $213.6 million). - In Cameroon, four quarter local business spending totaled 24.3 billion FCFA (almost $54 million). - For the entire project, purchases of goods and services from local suppliers now totals over one trillion FCFA (over $1.8 billion) since the project began. Capacity building classes have started in an innovative business training program designed to build local businesses in Chad. The curriculum has been built on a comprehensive needs assessment with information gathering through in-depth interviews with Chadian businesses. Chapter 11 - Health (PDF) The project’s health clinics provided more than 25,000 health care visits over the last 12 months, more than 11,000 of them in the first half of 2008. This level of care represents an average of more than three health care visits per year for each project worker. Chapter 12 - Community Investment (PDF) Community contributions by the project in Chad and Cameroon now total more than $9 million. - Three public clinics in the oilfield region of southern Chad have reopened following project donated renovations and expansions. Nurses report that they are seeing double the number of patients they were able to serve before the clinic improvement projects. - Cameroon has its own fiber optic backbone cable that will connect even small towns to the rest of the world. The telecommunications breakthrough was made possible by collaboration between the project and the government of Cameroon. Cameroon paid for the cable and the project installed it in the export pipeline trench during the pipeline construction. Chapter 13 - Update: Chad’s Oil Revenue (PDF) In the first half of 2008, project payments for royalties, taxes, fees, permits and duties added up to $782 million for a total of $1,244 million paid in the last four quarters. Chad’s total revenue since the project began has exceeded $3 billion. Download Full Report (PDF) |