Snapshot Summary (PDF)

Chapter 2 - Production & Construction (PDF)

At mid-year, the project was bringing online two projects aimed at maintaining oilfield production levels. In the new Maikeri oilfield, first wells were set to begin producing oil. In Komé, the pumps were about spin up for phase one of the High Pressure Water Injection project. In addition:

- Drilling crews have added 46 new production wells so far in 2007, for total of 72 wells in twelve months and a total well inventory of 414.

- Crews also completed 105 well enhancement procedures in the first 2007, making a total of 208 procedures in the last twelve months.

Chapter 3 - Reportable EMP Situations (PDF)

Project environmental monitors recorded a total of nine Environmental Management Plan non-compliance situations in the first half of 2007, three in the first quarter and six in the second quarter. All but one of the noncompliances were categorized as Level I situations, the most minor level of noncompliance. Five spills occurred during this reporting period.

The three-level ranking system for EMP non-compliance situations was designed as an early warning mechanism to detect issues and help correct noncompliant behaviors and practices well before they became serious enough to cause damage.

Chapter 4 - Safety (PDF)

As July arrived, the project mounted celebrations for all its workers for a major safety achievement - one year with no lost time incidents. The twelve month achievement included a total of more than 22 million work hours ranging through every aspect of the project from drilling to pipeline and plant operations to offices.

- In Chad, EEPCI employees have operated continuously for 15.8 million hours (since June, 2006) without a lost time incident.

- In Cameroon, COTCO employees have operated continuously for 16.5 million hours (since January, 2003) without a lost time incident.

- Two groups – drilling and exploration - have perfect records of no lost time incidents since project development began.

Drilling has logged 21.7 million hours with no lost time incident. The oil exploration and seismic group has no lost time incidents worldwide since 1994, including 3.3 million hours in Chad.

Chapter 5 -Consultation & Communication (PDF)

During the first half of 2007, the project held about 650 public consultation sessions, bringing the four quarters total to just over 1,300. More than 29,000 people attended project consultation sessions in the last 12 months. Two high priority consultation and communications activities so far in 2007 have involved:

- The land use situation in the Oilfield Development Area in southern Chad. For more information on these activities see the section Update: Land Use in the Oilfield Development Area.

- The outreach effort to provide accurate information to residents of the coastal area around Kribi in Cameroon following a spill offshore at the Floating Storage and Offloading vessel. For more information

Chapter 6 - Compensation (PDF)

Total individual land use compensation paid by the project over the last four quarters totaled over 728 million FCFA (approximately $1.5 million) in cash and in-kind payments. A total of nearly 11.1 billion FCFA in individual compensation has been disbursed since the project began.

Chapter 7 -Update: Land Use in the Oilfield Development Area (PDF)

The project added long range socioeconomic refinements to its Oilfield Development Area Land Use Mitigation Action Plan in the second quarter of 2007, finalizing the Action Plan. By mid-year, significant progress had already been achieved in each of the plan’s nine goal areas for 2007.

The Action Plan addresses a challenging land use situation involving the amount of land required to develop Chad’s Doba region oil. The plan will make it possible to meet that land requirement while at the same time ensuring that land users are able to sustain their long term livelihoods.

Chapter 8 -EMP Monitoring & Management Program (PDF)

An oil spill and ocean water quality protection conference in Cameroon and the appointment of a waste management task force in Chad topped the list of activities in the EMP monitoring management area during the first half of 2007.

One other major activity of the EMP department in Chad was the finalization and ongoing implementation of the Land Use Mitigation Action Plan. That topic has been covered in its own chapter in this edition. For more information see the section on Update: Land Use in the Oilfield Development Area.

At mid-year 2007, the project had just over 3,040 tonnes of hazardous waste in storage and awaiting processing, nearly all of it at the Komé Waste Management Facility. Some of the stored waste is awaiting batch recycling following guidelines set in the EMP.

Chapter 9 -Local Employment (PDF)

Overall employment levels for the project remained stable in the first half of 2007 although wages paid to Chadians and Cameroonians rose compared to the last reporting period. Chadians and Cameroonians combined held just over 85% of the project’s direct employment jobs.

- Wage payments to Chadian workers for the first quarter of 2007 totaled an estimated 3.0 billion FCFA ($6.1 million). For the second quarter, wages rose again to an estimated 3.1 billion FCFA ($6.3 million).

- Wage payments to Cameroonian workers for the first quarter of 2007 totaled 1.45 billion FCFA ($3.0 million). For the second quarter, wages totaled 1.45 billion FCFA ($3.0 million).

Wage estimates have been based on the latest available reports from project contractors.

Chapter 10 -Local Business Development (PDF)

Total project purchases of goods and services from local suppliers surpassed one trillion FCFA as of the end of the second quarter of 2007. Spending for the last twelve months totaled over 129 billion FCFA (approximately $263.2 million) - a 5% increase over the total for 2006.

- In Chad, spending in the last twelve months totaled 100.9 billion FCFA (approximately $204.1 million), bringing project spending to date in Chad to 628.1 billion FCFA.

- In Cameroon, spending in the last twelve months totaled 28.4 billion FCFA ($58.0 million), bringing project spending to date in Cameroon to 403.6 billion FCFA.

Chapter 11 -Health (PDF)

Clinics operated by the project logged more than 12,000 patient consultations in the first two quarters of the year. Clinic physicians during the second quarter began conducting local group training sessions as part of a worldwide program for prevention of pandemic flu.

Chapter 12 -Community Investment(PDF)

As of mid-year 2007, the project has contributed $9.2 million to an array of community, health, and environmental initiatives in Chad and Cameroon. These donated funds have:

- Renovated three clinics that serve people living in the Oilfield Development Area. Funding for the clinics came from the Africa Health Initiative.

- Utilized other Africa Health Initiative funds to pay for programs that helped fight three killing diseases – cholera, malaria, and measles.

- Purchased equipment and medicine for clinics and hospitals serving the communities in the project area.

- Provided for massive Roll Back Malaria mosquito bed net distribution and education programs throughout the project area in Chad and Cameroon.

- Underwritten annual government vaccination programs to fight polio, river blindness, and other diseases endemic to the project area.

- Operated broad and intensive public health education campaigns to teach tens of thousands of people about the dangers of HIV/AIDS.

- Helped seed the creation of two new national parks in Cameroon at Mbam-Djerem and Campo Ma’an, thus supporting environmental protection and biodiversity conservation for one million hectares of forest habitat.

- Constructed schools and supported many other types of education projects. In addition to individual schools, a project-funded initiative underwrote a UNICEF project to ensure that girls have places in local schools.

Project connections with communities in the oilfield area and along the pipeline go beyond formal donations. To name two examples: Employees have founded and funded three schools in their communities. Spouses of employees formed a community group nicknamed the Busy Bees which has helped to fund water wells, schools, and a women’s weaving cooperative.

Chapter 13 -Update: Chad’s Oil Revenue (PDF)

Chad’s total oil project revenue broke through the $2 billion level midyear. In the first two quarters of 2007, project payments for various royalties, taxes, fees, permits and duties totaled $757 million.

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