Your Excellency, President Déby

Honourable Heads of State

Honourable representative of the Head of State of the Republic of Cameroon

President of the National Assembly of Chad

Distinguished representatives from the World Bank

Distinguished Ministers from Chad

Distinguished Members of the Diplomatic Corps

Distinguished Guests

Ladies and Gentlemen

On behalf of ExxonMobil, Esso Chad and our co-venturers, Petronas and ChevronTexaco, I want to welcome all of you to our Kome Operations facility.

I am very excited to be here today - a day all of us have worked very hard over the past many years to bring to reality.

It was nearly 15 years ago that I was first involved with this project. At that time we thought we had a potentially viable project but we needed to establish more oil reserves to be able to take it forward as a commercial opportunity. As you know with a lot of hard work by many people we were able to do that and I am proud to be here today to celebrate that accomplishment with all of you.

I am also pleased to tell you that we have completed the pipeline and one of the three oil fields to be developed, one full year ahead of schedule. More importantly the first cargo of crude oil from Chad was loaded in early October and is now on its way to the world market. That very important event marked the entry of Chad into the ranks of the oil exporting nations of the world.

One aspect of the project that stands out for me is the unprecedented degree of collaboration between our consortium, the two governments and the World Bank.

On behalf of the consortium, I wish to express my congratulations and appreciation to His Excellency President Deby and to the World Bank and through your diligent efforts, this partnership is seen as a model by many people who are studying it today.

It was clear from the beginning that a strong collaboration would be needed to build a project that covers so much terrain, affects so many people and requires the co-ordination of many elements.

The Chad Cameroon Oil Development and Pipeline Project starts in one Central African country and traverses another; it unites three corporations into a single development consortium; and it incorporates the experience of the World Bank and local as well as international experts.

This project could not have been accomplished without a bond of partnership and commitment that brought all these people and organisations together.

We have from the outset approached the Chad - Cameroon Project with a focus on detailed and rigorous planning, on uncompromising ethical business practices and on adherence to all the laws. And in doing this, we also had to make sure that we were always respectful of the culture and the customs of both countries. We have applied U.S. and European standards to the design and implementation of the project to supplement local engineering and construction codes.

At every step of the way our approach to social and environmental issues and challenges was based on the need for collaboration and consultation. We are proud to say that we have planned and built this project in a way that minimizes its impact on residents and the natural environment.

We take great pride in the fact that this project represents the most extensive public consultation effort for any single project in the history of Africa and probably in the world. These efforts continue today as we move into the production phase of the project.

Many people have asked whether we succeeded in meeting our commitments. I am very pleased to say we definitely have. For example, no project in Chad or Cameroon -- and probably no project in sub-Saharan Africa -- has ever needed so many skilled workers at one time. At the peak of construction, 13,000 people were employed on the project and, altogether, more than 35,000 people were employed during the construction phase. At least 65%, and often as many as 90%, of these employees were citizens of the two countries.

I am especially proud of the safety record achieved by this project. It is at the top of our industry. Since June 2002, the Project's contractors have tallied over 40 million cumulative work hours without a lost time accident---a tremendous accomplishment. Our road safety program has achieved a traffic accident avoidance rate that is better than that of North American highways. And, through our Malaria Control Program we have reduced the number of malaria cases within our work force by more than 50 per cent compared to the incident rate at the beginning of construction. We have also distributed treated bed nets to the local population to help protect local villagers, especially young children, from this terrible disease.

The project has made it easier for farmers to get their products to market with the repair and upgrading of over 600 kilometers of roads in Chad and Cameroon as well as the construction of new bridges.

The project also benefited the community in other ways. Purchases of goods and services by the project helped businesses in local communities, and wages paid to workers further stimulated demand in those communities. In Chad the rate of growth of the Gross Domestic Product soared to 11% annually, compared to 1% annually prior to the start of construction. And with revenues now beginning to flow, the future growth rate will undoubtedly be much higher.

Much work remains as we move into our production phase that will last over 25 years. One of the key next steps for this project is to complete the central treating facilities on this site by year-end 2003 and early next year we expect to reach full production capacity of some 225,000 barrels a day. And, of course, we will continue to explore our permit area in the hope of adding additional discoveries and fields to the already existing production. I should add that all of our activity will be undertaken with the same care and attention as we have done in the past.

In closing allow me to acknowledge and thank the many thousands of people from every part of world who have helped make this project a reality.

• First, to the people of Chad and Cameroon who gave us their knowledge and experience during countless consultation sessions;

• To our co-venturers, Petronas and ChevronTexaco, for their collaboration and wise counsel;

• To the World Bank Group and all the lenders for their dedication and perseverance in all aspects of the project;

• And to the thousands of workers who formed the team that has built this project, thank you for your skill and your dedication in the face of so many challenges

• And, finally, to Your Excellency President Déby for your effective leadership in making this day a reality for all of us.

And thank you for allowing me to join you today in this celebration.