Esso deal could vault Chad into producer ranks
Esso Exploration & Production Chad Inc. has signed a memorandum of understanding (MOU) with Chad that could lead to that country's first commercial oil production.
Last year, operator Esso and partners signed a framework agreement with the governments of Chad and Cameroon covering a proposed pipeline to move crude from land-locked Chad to the Atlantic coast for export to world markets (OGJ, Feb. 6, 1995, p. 38).
The MOU addresses key financial, legal, and operating terms under which the project, in southern Chad's Doba basin, would be developed. Project area, about 350 miles south of N'Djamena, is estimated to contain 900 million bbl of reserves.
Esso said the cost of developing oil reserves in Kome, Miandoum, and Bolobo fields and the infrastructure needed to transport them is expected to total about $3 billion.
Interests are Esso and Ste. Shell Tchadienne de Recherches et d'Exploitation 40% each and Elf Hydrocarbures Tchad 20%.
Remaining hurdles include final government ratification of terms, as well as obtaining project financing. In the interim, Esso said, the group will invite proposals from potential bidders for the major engineering, procurement, and construction contracts.
What's planned
Esso said about 300 wells would be drilled, with production to peak at about 200,000-250,000 b/d of oil as early as 2000. Production would be gathered into a central treating complex.
Oil would be transported about 650 miles via a 30-in. pipeline across Chad and neighboring Cameroon to the Atlantic coast. Chad and Cameroon recently signed a treaty establishing a basis for construction and operation of the planned pipeline.
Commercial tankers would load oil at an offshore terminal near Kribi, Cameroon.
Second project
The MOU also outlined a second potential project in Chad that calls for development of Sedigi field, north of Lake Chad, and a pipeline to supply a proposed refinery at N'Djamena to be operated by Ste. d'Etude et d'Exploitation de la Rafinnerie du Chad.
The plant would produce fuel for transportation, power generation, and other uses.
In the late 1970s, plans were put forth to build a 2,700 b/d refinery to process Sedigi field oil.
Conoco Inc. and partners discovered the field in the late 1970s (OGJ, Aug. 21, 1978, Newsletter).
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