Capital Cost: US$ 1.7 billion
Engineering – Civil Engineering
Oil And Gas Industry – Exploration & Production
has principal: Elf Aquitaine (17.3%)
has principal: ExxonMobil Corporation (34.6%)
has principal: Government of Cameroon (8.5%)
has principal: Government of Chad (5%)
has principal: Societe Shell du Cameroun (34.6%)
Construction of the Chad-Cameroon oil pipeline has been delayed because of financial, environmental and ecological considerations. The route has been changed to avoid forest areas and zones inhabited by pygmies. The pipeline will link the oil fields of Kome and Doba in Southern Chad to the Cameroon port of Kribi. Capacity will be 250 000 barrels per day. The pipeline will be 1070 kilometres long and will be constructed by a consortium consisting of Exxon, Petronas and Chevron in association with the two governments. The Board of the World Bank Group has agreed to support the Chad-Cameroon Petroleum Development and Pipeline Project. The facilties will include an onshore pressure reducing station, a 12km subsea pipeline and an offshore FSO.
In June 2000, the Board of the World Bank agreed to support the Chad-Cameroon Pipeline. Almost all the $3.7 billion investment will be private. The World Bank Group will provide $93 million on IBRD terms ($53.4 million for Cameroon and $39.5 million for Chad) to finance the governments’ equity share in the project and a $100 million loan from International Finance Corporation (IFC) to the joint-venture pipeline companies. In addition, IFC will mobilize up to $300 million in syndicated loans from commercial banks. The remaining funding will be provided by the oil companies themselves, commercial bank loans supported by export credit agencies, and possibly project bonds.
The project will produce approximately 160 million cubic meters (as much as 1 billion barrels) of crude oil over a 25- to 30-year period. The peak annual average production rate is estimated to be approximately 36,000 cubic meters (225,000 barrels) of oil per day. The project comprises the following main components:
· Oilfield: The project proposes to develop three oilfields in the Doba Basin of southern Chad, including approximately 300 oil production wells, 25 water injection wells, a system of flowlines and gathering pipelines, produced fluids treating facilities, a power plant, cargo airport and operations control center. The development of the oilfield is estimated to cost between $1.5 and $1.8 billion.
· Pipeline: The oil produced will be transported along a 1,070-kilometer (663 mile) pipeline from the oilfields in southern Chad through Cameroon to the Atlantic Ocean near Kribi. There will be associated pump and pressure reducing stations, and an offshore marine terminal consisting of a moored Floating Storage and Offloading (FSO) vessel.
· Infrastructure: To support these two main components, the project will also include numerous infrastructure additions and improvements. These will include some new road and bridge construction as well as improvements in existing road and railroad infrastructure.
The project will include drilling approximately 300 wells in the Doba Basin oilfields, Bolobo, Kome and Miandoun. It is anticipated that production will be in the region of 900 – 1 million barrels of low sulfur oil over a period of 25 to 30 years. A local facility will be developed at Kome to gather, treat and blend the crude oil that is produced. Production was anticipated to start in 2001 but it likely that it will be delayed. Esso Exploration and Production is the consortium’s designated operator. It is believed that very little natural gas will be produced, but that which is will be utilized and no gas will be routinely flared.
A 120 megawatt electric power generation plant will be constructed to supply power which will be fueled by gas, crude oil or a combination of both.
The pipeline that will be constructed to transport the crude oil to the Atlantic is a key part of the project. It will be approximately 1070 km in length, of which 15% will be in Chad and 85% will be in Cameroon. The pipeline will be 760 mm in diameter and will be buried about 1 metre underground.
There will be three pump stations and a pressure reducing station in the pipeline system. Pump Station #1 will be located at the main Operations Center in the oilfield area of southern Chad. Pump Stations #2 and #3 will be located in Cameroon and will be manned and completely self-supporting (i.e., each will have power generation capabilities and worker accommodations).
Those elements that fall in Chad will be build and operated by the Tchad Oil Transport Company (TOTCO) while those in Cameroon will be the responsibility of the Cameroon Oil Transport Company (COTCO).
The marine terminal is comprised of the marine portion of the pipeline, a Floating Storage and Offloading (FSO) vessel and its single point mooring system.
Current plans call for a single hull crude oil tanker converted to stationary duty to be used as the FSO vessel. This tanker is targeted to have a crude oil storage capacity of 318,000 cubic meters (2 million barrels), roughly one week of pipeline output at peak capacity.
During construction, approximately 340,000 metric tons of materials will be moved through or within Cameroon during construction, of which 160,000 metric tons will be transported into Chad.
To cater for these vast volumes, approximately 650 km of roads in Chad and Cameroon will be upgraded or built. One new bridge will be built and others upgraded.
The rail system between Douala and Ngaoundal in Cameroon will be upgraded to accommodate the extra traffic. In addition to improvements to the land transport system there will be improvements in the form of new storage yards at Douala and eleven other points along the pipeline, a satellite-based communications system and a cargo airstrip in the oilfield area.