By OGJ editors
HOUSTON, Nov. 24 -- The first 50 million bbl of Chadian crude oil has been shipped to world markets through the marine terminal at Kribi, Cameroon, according to the Chad-Cameroon project.
Production was boosted to an average of 205,000 b/d during the quarter ended Sept. 30 and achieved a single-day record of 220,000 bbl, said Esso Exploration & Production Chad Inc.
All three of the project's fields were on line by Sept. 30, as oil from Bolobo field began flowing into the system in early August, 5 months ahead of schedule. Bolobo joined Miandoum and Kome fields, which started up earlier (OGJ Online, Aug. 17, 2004).
The project still had not achieved full production of 225,000 b/d. Crude oil sales averaged 140,000 b/d in the first year of shipments.
Higher oil prices have benefited Chad even though the quality and price of the Doba blend crude are well below those of North Sea Brent crude.
"Royalties paid to Chad for the relatively low volume start-up year totaled $109 million at the end of the third quarter, more money than originally predicted even for a full volume year," Esso Chad's third quarter report said. The funds go into escrow accounts in London in accordance with Chad's revenue management plan.
Doba Blend is low in sulfur but heavy, viscous, and high in calcium and acid (OGJ Online, Mar. 26, 2004).
An unsophisticated refinery that can convert two thirds of a barrel of Brent crude into gasoline, jet fuel, and diesel can upgrade only about one fourth of a barrel of Doba blend oil into the same light products.
Project progress
Oil shipments from Kribi totaled 18.1 million bbl in 20 tankers in the quarter, bringing the project total to 51.3 million bbl in 55 tankers.
Sales from Kribi began in the fourth quarter of 2003.
Crews had drilled 175 wells, about 70% of the planned total of 250, and 150 wells were completed and on production. Drilling was completed in Miandoum field and continuing in Kome and Bolobo fields.
The project participants completed construction of a gas processing plant for the central oil field facility. The unit takes advantage of unexpectedly high quantities of gas available from several wells in Kome field.
The gas volume is enough to fuel all four oil field electrical generators. The unit extracts light petroleum products that are added to the exported crude oil, slightly increasing its value when marketed.
Much of the reason for the early Bolobo start-up involved project managers and crews having gained experience in earlier project stages and having developed the capability to fast-track elements of construction ahead of drilling so wells could be brought into production more quickly once completed.
