Chaba

Project Overview

The Chad-Cameroon Petroleum Development and Pipeline Project is one of the largest private investment projects in Africa, initiated in the late 1990s and approved in 2000. The project involves the extraction of oil from fields in southern Chad and its transportation via a pipeline to the Atlantic coast of Cameroon for export.

Partners and Stakeholders

• Consortium: The project is led by a consortium of oil companies, with ExxonMobil holding 40% of the capital, Petronas (the Malaysian state oil company) holding 35%, and Chevron holding 25%.
• Government of Chad: The government of Chad is a critical partner, providing the oil resources and infrastructure support.
• World Bank: The World Bank played a significant role by providing financial and technical support to ensure the project's success and alignment with development goals.

Infrastructure and Operations

• Pipeline: The project involves the construction of a 650-mile (1,046 km) pipeline from the oil fields in southern Chad to the Atlantic port of Kribi in Cameroon. ExxonMobil was responsible for constructing and operating the pipeline.
• Oil Fields: The project taps into approximately 300 oil fields in southern Chad, primarily in the Doba basin.
• Employment and Local Impact: The project hired a significant number of local workers, with 86% of the workforce being Chadian and Cameroonian. This hiring contributed to local economic activity, with laborers earning about $11 million per quarter and the project purchasing local goods and services totaling $340 million by mid-2002.

Economic Impact

• Revenue: The project was expected to generate significant revenue for Chad, estimated at $100 million per year or $2.5 billion over the life of the project. With the increase in oil prices, Chad's real GDP growth was predicted to reach 40% in 2004, making it the fastest-growing country in the world at that time.
• GDP Growth: The project's economic impact included substantial GDP growth for Chad, driven by the investment in the pipeline, hiring of local labor, and purchase of local goods and services.

Transparency and Governance

• Revenue Management Oversight Committee (RMOC): To ensure transparency and proper management of oil revenues, the Government of Chad established the RMOC (College de Controle et de Surveillance des Ressources Petrolieres du Tchad) in January 1999. This committee oversees the use of oil revenues for economic development and poverty reduction.

Technical Innovations and Efficiency

• Drilling Techniques: The project has implemented various new drilling techniques, such as cluster pad drilling, to improve efficiency and reduce costs. Additionally, the use of non-toxic soluble polymers has enhanced oil recovery from existing wells, particularly in the Doba fields.
• Maintenance and Operations: The consortium has focused on improving maintenance efficiency, reducing downtime, and developing additional natural gas resources to power operations. These efforts have improved the project's economic outlook despite volatile global market conditions.

Environmental and Social Considerations

While the primary sources do not delve deeply into environmental and social impacts, such large-scale oil projects typically involve significant environmental and social considerations, including the potential for environmental degradation and community displacement. The establishment of the RMOC and other oversight mechanisms was partly aimed at ensuring that the project benefits the local population and contributes to sustainable development.