Esso Exploration & Production Chad Inc. and its partners have begun construction on the Chad-Cameroon oil development and pipeline project, said ExxonMobil Corp. The $3.5 billion project will develop oil fields in southern Chad and transport the crude oil 663 miles to the coast of Cameroon for export.
The project is expected to start up as early as 2003. Production is expected to reach 225,000 b/d of oil.
Esso Chad Pres. Tom Walters said, "We have defined an aggressive construction schedule that is based on rapid mobilization and commencement of critical infrastructure work in the fourth quarter, 2000." He added, "Pipeline installation will begin in 2001, in parallel with construction of oilfield processing facilities. Drilling of the first of the planned 300 wells will begin in late 2001 and continue through initial production start-up."
The World Bank announced financial support for the project in June (OGJ Online, June 6, 2000).
ExxonMobil's affiliate Esso E&P Chad is the operator of the consortium developing the project. Other partners are Malaysian oil company Petronas, Chevron, and a Chinese oil company.
An ExxonMobil statement said that the project will produce an economic development value for Chad of $2.5-$8.5 billion over its life, depending on oil prices. Cameroon is expected to benefit by up to $900 million.