Esso Chad discussing new oil field developments

May 18, 2004
Esso Exploration & Production Chad Inc. has been discussing a potential new oil field development in southern Chad even as it works to push its Chad-Cameroon project to full production.

By OGJ editors
HOUSTON, May 18 -- Esso Exploration & Production Chad Inc. has been discussing a potential new oil field development in southern Chad even as it works to push its Chad-Cameroon project to full production.

The ExxonMobil Corp. subsidiary did not meet its self-set goal of reaching project capacity of 225,000 b/d in early 2004, according to the company's first quarter status report.

The company gave few details of potential developments in the area beyond the already discovered Miandoum, Kome, and Bolobo fields being developed by the combine of Esso E&P Chad Inc., Petronas of Malaysia, and ChevronTexaco Corp.

"The consortium has been working to find additional oil resources in southern Chad and early results of exploration that began in 2001 now show some promise," Esso Chad said.

"Additional reserves could extend the peak production period and thus increase the total amount of oil produced. If the results of ongoing testing continue to be encouraging, there could be some new oil field development that would yield some short and long term positive effects."

The report said collaboration is under way with the Chadian government to limit environmental and socioeconomic impacts and to ensure that the population benefits. For instance, tentative pipeline and road concepts have been discussed, and land use compensation will be consistent with the original three-field project.

The companies launched an investigation and took steps toward prevention after a Chadian worker died in an accident involving a piece of heavy equipment in the oil field area.

Production progress
As the first quarter of 2004 was ending, the project set a single day oil field production volume record when more than 196,000 bbl of Chadian crude oil were pumped into the 1,070-km Chad-Cameroon pipeline in one 24-hr period.

Every component of the crude oil transportation system was in full operation for the first time in the first quarter with activation of pump station 3 near Belabo, Cameroon. Tchad Oil Transportation Co. SA and Cameroon Oil Transportation Co. SA operate the pipeline in the respective countries.

Ten tankers sailed from the FPSO off Kribi, Cameroon, in the first quarter of 2004 compared with nine in the last three months of 2003 (OGJ Online, Feb. 18, 2004). The 19 vessels transported a combined 18.2 million bbl of oil.

Construction was completed and all central oil field facilities are in service.

Miandoum was the first field to go on production, but almost all first quarter drilling took place in Kome field, which began producing in the quarter.

Of a total of 133 wells drilled in the three fields by the quarter's end, more than 100 were completed and producing oil to the central processing facility. Full development involves 250 wells.

Three vapor recovery units capture natural gas mingled in the produced crude for fueling the facility's four generators. The units sharply reduced temporary flaring required during initial start-up.

An assay provided by ChevronTexaco of Doba blend crude showed it to be 20.5° gravity with 0.16 wt % sulfur. The assay included oil from Miandoum and Kome fields, and Bolobo crude was eventually to become part of the blend (OGJ Online, Mar. 26, 2004).

"As projected during the project planning phase," Esso Chad said, "the market price of oil from Chad has come in below the market level achieved by the widely reported, high quality Brent North Sea crude oil pricing benchmark."