UNDER CONSTRUCTION / PLANNED

Central Africa
Chad-Cameroon Pipeline
The project consists of two primary components, development of oil fields in Chad’s Doba basin and the construction of a  pipeline and export facilities. The Doba basin's three fields (Bolobo, Kome and Miandoum) will produce an estimated 225,000 bbl/d at their peak. Plans currently call for the drilling of 300 wells in the Chadian oilfields with 900 million - 1 billion barrels of oil produced over the life of the project (25-30 years).

The 655-mile (1,050-kilometer) pipeline will run from the Doba fields in Chad to an offshore export terminal located near Kribi, Cameroon. The Chadian portion of the pipeline, approximately 105 miles (170 kilometers), and the first (located at Kome) of the three pumping stations will be built and owned by TOTCO ( Tchad Oil Transport Company).  TOTCO is a consortium of the Doba basin field developers -- Exxon (34%), Shell (34%), Elf (17%)-- and the government of Chad (15%). The section through Cameroon, 550 miles (880 kilometers), which also includes the remaining pumping stations and the export facilities, will be built and owned by COTCO (Cameroon Oil Transport Company). COTCO consists of Exxon (34.6%), Shell (34.6%), Elf (17.3%), the Cameroonian government (8.5%) and the government of Chad (5%). The export facilities will consist of an onshore pressure-reducing station, a 12-kilometer (7-mile) subsea pipeline and an offshore floating storage and off-loading facility (FSO). The FSO will have a crude oil storage capacity of 2 million barrels, nearly one week of the pipeline’s output at peak capacity.

The total project cost is estimated to be between $3 - $3.5 billion. Exxon, Shell and Elf plan to finance approximately 97% of the project. Approximately 60%  will be financed directly, while 37% of the costs will be obtained through loans from the International Finance Corporation, various export credit agencies and commercial banks. The World Bank is financing about 3% of the project’s total cost. The $115 million in World Bank loans requested by Chad ($46 million) and Cameroon ($69 million) will be used to fund their equity interests in the oil pipeline. The World Bank has imposed several requirements as prerequisites to the loans approval. The prerequisites include: a credible oil revenue management program; extragovernmental participation (including opposition parties and the private sector) in decisions concerning the use of oil revenues; government commitments to target revenue expenditures on education, health and infrastructure; resettlement of people displaced by the project; and consultation with residents and others affected by the project.

The Revenue Management Plan (RMP), developed by the Republic of Chad with the assistance of the World Bank,  has been enacted by Chad's National Assembly and approved by its President. The RMP allocates 86.5% of the revenues to programs for health, education, water, sanitation, roads and agriculture. Allocations for specific programs to benefit the residents of the oil producing area are also contained in the RMP. The remaining portion of the funds, 13.5%, will be allocated for management and expenses associated with the project.

Although no resettlement is necessary along the pipeline route, about 150 households will be relocated in the oil field area. Along the pipeline itself, the vast majority of the land will be affected only for an approximate three month construction period and usage will be returned after completion of construction. The compensation plans for Cameroon and Chad provide monetary and in-kind compensation for loss of crops and other resources. Compensation in Cameroon will be paid by the government, with supplemental compensation (to meet World Bank requirements on compensation) paid by COTCO.