Chad Export Project Year End Report 2012 Highlights

Chad Export Project
Project Update No. 33

Year End Report 2012
This report has been prepared by Esso Exploration and

Production Chad Inc., in its capacity as Operator of the
Consortium and as Project Management Company on behalf
of the Tchad Oil Transportation Company S.A. (TOTCO) and
the Cameroon Oil Transportation Company S.A. (COTCO).
Preface
ThisProjectUpdate,thethirtythirdsuchreportfortheChadExportProject(alsoreferredtoas
the Chad/Cameroon Development Project), covers the period from July through December
2012. The report reflects the activities of the project operating company and its prime
contractors, with a particular focus on compliance with the Environmental Management Plan
(EMP).Severalentitiesshareresponsibilityforimplementingtheproject.
Oilfield development and production in Chad is conducted by Esso Exploration and

ProductionChadInc.(EEPCI)onbehalfoftheConsortium(Esso,Petronas,Chevron).
Pipeline activities in Chad are conducted by the Tchad Oil Transportation Company S.A.
(TOTCO).
Pipeline activities in Cameroon are conducted by the Cameroon Oil Transportation

CompanyS.A.(COTCO).
Duringconstruction,EEPCIprovidedprojectmanagementservicestoTOTCOandCOTCO.
Thesereportsaresubmittedthrough,andsubjecttoverificationby,theWorldBankandLender
GroupasareportingrequirementoftheprojectspartnershipwiththeBankandthetwohost
countries.
ThisreportalsorepresentsacommitmenttotransparencybyEssoanditscoventurepartners.
Bypublishingthisinformation,theprojectwishestomakeitpossiblefortheWorldBankand
Lender Group, the citizens of the host countries, interested nongovernmental organizations
(NGOs)andotherstostaywellinformedabouttheprojectasitunfolds.
The reports are posted on the projects website (www.essochad.com). A limited quantity of
printedreportsisalsodistributedtostakeholdersinfulfillmentofreportingrequirementsand
tomakeinformationmorereadilyavailabletothecitizensofChadandCameroon,wherevery
fewpeoplehaveaccesstotheInternet.ReportsarealsoavailableinFrench.
October2000hasbeendesignatedastheofficialstartdateoftheprojectforthepurposesof
datacompilation.Currencyconversionsarebasedontherateofexchangeatthetimeofthe
expenditureandthiseditionutilizesexchangeratesofFCFAtooneU.S.dollarasfollows:
1stQuarter,2012 499FCFA
2ndQuarter,2012 507FCFA
3rdQuarter,2012 510FCFA
4thQuarter,2012 511FCFA
TableofContents
SNAPSHOTSUMMARY
PRODUCTION&CONSTRUCTION
11
REPORTABLEENVIRONMENTALMANAGEMENTPLANSITUATIONS
17
EMPMONITORING&MANAGEMENTPROGRAM
21
SAFETY
31
CONSULTATION&COMMUNICATION
41
COMPENSATION
47
LANDUSEINTHEOILFIELDDEVELOPMENTAREA
49
LOCALEMPLOYMENT
59
LOCALBUSINESSDEVELOPMENT
63
HEALTH
67
COMMUNITYINVESTMENT
71
HOSTCOUNTRYREVENUE
81
SnapshotSummary
To date, the project has invested 1.9 trillion FCFA ($3.8 billion) in initiatives aimed at
maintaining production levels. The Consortiums investment in additional production and
water reinjection wells, coupled with other measures to support the daily rate of oil
production, has enabled the project so far to deliver over 454 million barrels of oil to
marketinitsfirstnineyearsofproduction.
o Spendingonproductionsupportduring2012totaled300billionFCFA($590million,
including $385 million in capital investments and $205 million in daytoday
operationsdirectlyrelatedtosustainingproduction).
o A major milestone was reached in 2012, with the project having produced,
transported and delivered over 500 liftings of oil through its export system and
FloatingStorageandOffloadingVessel,withoutinterruption.
2012 was a record year for Environmental Management Plan (EMP) compliance, with the
project recording zero noncompliance situations in the second half of 2012. The total
numberofnoncompliancesituationsfortheyearwasfour.
Highlights from 2012s EMP Monitoring and Management Program include the continued
implementationofavarietyofmonitoringprogramsaspartoftheprojectsdefensesystem
toensuretheintegrityofitsinfrastructurefromKomtoKribi.
o Theseprogramsincludecorrosionmonitoringandcontrol,groundwatermonitoring
andaerialpatrols.
2012alsomarkedthesuccessfulconclusionoftheprojectsPhDscholarshipprogramwith
theCamerooniangovernment.
A serious accident occurred in August resulting from a flash fire during well maintenance
performed by a contractor. In addition to two fatalities, there was one critical injury and
two first aid cases. The project has conducted an indepth investigation into the cause of
theaccidentandhastakenmeasurestohelppreventsimilaraccidentsinthefuture.
As part of its standard practice, the project held hundreds of consultations in Chad and
Cameroonin2012incommunitiesnearprojectareas.Thesessionscoveredawiderangeof
topics,includingoutlininganewclaimsprocessintheOilFieldDevelopmentArea(OFDA),
educatingvillagersaboutthehazardsofsettingbrushfiresalongthepipelineinCameroon
andanAIDSeducationcampaignalongthepipelineinChad.
SnapshotSummary
Compensationpaidtoindividualsforlandusebytheprojectinthelastfourquarterstotaled
over750millionFCFA(over$1.5million)incashandinkindpayments.
o Almost15.5billionFCFA(over$30million)inindividualcompensationforlanduse
hasbeendisbursedsincetheprojectbegan.
o AnincreaseincompensationinCameroonwasrecordedinthethirdquarter,dueto
treecuttingactivitiesinBelabo.
In2012,theprojectachieveditslowestlandusefootprintinyearsandreduceditsbacklog
of land and compensationrelated grievances by 80%.These achievements were the result
of significant revisions in the projects land management plan and recent restructuring of
theEnvironmentalManagementPlanDepartment.
At year end, over 6,300 Chadian and Cameroonian nationals were employed by EEPCI,
COTCO, TOTCO and their contractors representing almost 90% of the total project
workforce. Almost 80% of those Chadians and Cameroonians working for the project are
employedinsemiskilled,skilled,supervisoryorexecutivejobs.
In 2012, the projects support of Chad and Cameroons economies through purchases of
goodsandservicesfromlocalsupplierstotaled88billion FCFA($175 million).In addition,
COTCO has begun construction on a temporary camp for workers who will modify two
sections of the pipeline in support of the Lom Pangar Hydropower Project, a first step to
increaseCameroonselectricgenerationcapacityfivetotenfoldoverthenext20years.
The projects healthrelated priorities in 2012 included both employee and community
based initiatives. While villages along the pipeline route in Chad benefitted from an AIDS
education campaign, the project also worked to empower women in the OFDA to teach
their communities how to prevent and treat malaria. Meanwhile, the projects Medicine
andOccupationalHealthDepartmentconducteddiabetesandotherscreeningsforstaff,to
helpaddressemerginghealthissues.
AnewbuildingtoprovideemergencyhospitalservicesinKribi,aprogramtoinstallwater
wells in communities across Cameroon, and the launch of a second phase of a womens
empowermentinitiativeintheoilproducingregionwerekeyhighlightsfromtheprojects
communitydevelopmentinvestmentsin2012.
Theprojecthasgeneratedover$10billioninrevenuesforChadsinceoilbegantoflowin
2003,muchofwhichthecountrycontinuestoinvestinChadseconomic,socialandcultural
developmentsectors.2012markedanothermilestoneforChadspetroleumindustryasthe
countrycompleteditsfirsteverdirectsalesofcrudeontheinternationalmarketthrougha
royaltyinkindarrangementwiththeproject.
Maintenance Area #1
Oil Field Development Area

(Includes Pump Station #1)
Maintenance Area #2
Maintenance Area #3
Chad/Cameroon Development Project
Project
Overview
Nankess
Bladjia
Bbdjia
DOBA
MOUNDOULI
Miandoum
Mbikou
Ngara
NYA
Baikoro
KOME
BOLOBO
Bti
MIANDOUM
Miladi
MAIKERI
Boro
Kom
TIMBRE
Donia
in
MOUNDOU
Bro
BADILA
Boye Bessao
p
Ex
or
Chad/Cameroon
Development Project
p
Pi
el
Overview of the
Oilfield Area
Production&Construction
Spendingonproductionsupportduring2012totaled300billionFCFA($590million,including
$385millionincapitalinvestmentsand$205millionindaytodayoperationsdirectlyrelatedto
sustaining production). To date, the project has invested 1.9 trillion FCFA ($3.8 billion) in
initiatives aimed at maintaining production levels. The Consortiums investment in additional
productionandwaterreinjectionwells,coupledwithothermeasurestosupportthedailyrate
of oil production, has enabled the project so far to deliver over 454 million barrels of oil to
marketinitsfirstnineyearsofproduction.
Inadditiontodrillingnewoilwells,theproductionsupportinvestmentsintheprojectsDoba
Basin oilfields included a high pressure water injection program and hundreds of well
stimulation procedures. As a result even as the projects oldest oil wells mature and their
outputdeclinesthe2012dailyproduc onratewas101,400barrelsperday,alevelroughly
12%belowtheaveragelevelfor2011.
Theprojectreachedamajormilestonein2012,havingproduced,transportedanddeliveredover500liftingsof
oil(454millionbarrels)throughitsexportsystemandFloatingStorageandOffloadingVessel,without
interruption.NewChineseandCanadianproducersofChadianoilareexpectedtobeginshippingadditional
crudethroughtheprojectsexportsystemasearlyas2013.
11
GASDEBOTTLENECKING:AMAJORINVESTMENTTOENSURELONGTERMPRODUCTION
Dozensofkilometersofpipesarebeinginstalledaspartofa$100millioninitiativetoensurea
sufficientsupplyofgasisavailabletomeetlongtermproductionneeds.Thismultiphaseeffort
calledgasdebottleneckingistheprojectslatestinvestmenttoextendproductionofChads
crudeforyearstocome.Whilealloilwellsproducevaryingamountsofnaturalgas,theproject
has several wells that produce the majority of the gas needed to run a power plant that
generates 100+ megawatts of power to pump the projects 666 producing wells and export
Chadscrude.However,asthewellsmature,theirpressurenaturallydecreases,anditbecomes
moredifficulttoextractthegasandtransportitfromthewelltopowerplant.
Above, workers install new equipment as part of a temporary gas debottlenecking solution
which is expected to come on line during the first quarter of 2013. A longer term solution
requires installing a separate parallel pipeline to transport the gas to the power plant and is
expectedtobecompletedduringthesecondhalfof2014.Additionally,theprojectisworking
on a permanent solution to natural reductions in gas production. Referred to as the crude
firingproject,itinvolvesadaptingthepowerplantsturbinestorunoncrudeoil,andwillbe
phasedingraduallytooffsetthereductioninavailablegas.
Theseinvestmentsarenecessarytomaximizeourproduction
andprofitabilityfortheprojectandforChad.Wearemakingthis
longterminvestmentbecauseweareconfidentthatthereis
muchcrudelefttobeextractedfromtheDobafields.
GerardNadjiadjim,ProjectEngineer
12
MAXIMIZINGPRODUCTIONWITHRELIABLEPUMPS
KeepingChadsoilflowingrequiresreliablepumpsthatdelivercrudefromdeepinthewellto
thesurface.Theprojectspumpreliabilitycontinuedtoimprovein2012,surpassingitsrecord
performance in 2011, for which the projects well work team won a global award from the
ExxonMobilProductionCompany.
Severalfactorscontributetotheprojectsstrongrecordofreliability.First,thewellsurveillance
teammonitorsinrealtimepumpparameterssuchaspressure,temperature,voltagespeedand
power.Earlydetectionofproblemsalongwithdailyteamdiscussionsensuresthemaintenance
teamisalwaysreadytomakeanynecessaryadjustments.Finally,rigorousanalysisisperformed
oneveryfailedpumpbyateambasedinChadandHouston.Resultsofthisanalysiscontribute
to mitigation steps that protect other pumps. These studies have also resulted in design
changesbythepumpmanufacturer.
Above,apumpliesdismantled,awaitingexaminationandanalysisbythe
investigationteam.Thereliabilityofbothtypesofpumpsprimarilyusedto
extractDobacrudehasbeensteadilyincreasingsince2006.
Surveillanceofthewellsisimportanttokeepingourpumps
runningsmoothly.Andthisisimportantbecausewhenapumpis
running,itisproducing.Whenthepumpsstop,itcoststheproject
andChadmoney.Teamworkiscritical,withsubsurfaceengineers,
surveillanceengineersandfieldoperatorsallworkingtogetherto
gatherandinterpretdataandkeepthepumpsrunningsmoothly.
PebahSodibe,ArtificialLiftEngineer
13
RESULTSFROMPRODUCTIONSUPPORTINVESTMENTS
ThousandBarrelsPerDay(kbd)
At year end 2012, project production support investments were contributing about 77,300
barrels per day to the projects crude oil output. Without the Consortiums investments,
production would have fallen to about 24,100 barrels per day just under onefourth of the
currentyieldof101,400barrelsperdayduetothenaturaldeclineinbaseproduction,which
isoccurringfasterthaninitiallyassumed.
AdditionalOilWells
WellStimulations
WaterInjection
76%of TotalProduction
77,300barrels/day
101,400 barrels/day
(2012 Average)
DecliningOutputfromOriginalWells
PRODUCTIONSTATISTICSFORLASTFOURQUARTERS
NetVolumeofShipmentsfromMarineTerminal
Millionsof
Barrels
ExportTanker
Shipments
14
Q12012
Q22012
Q32012
Q42012
Last12
Months
Project
toDate
9.5
9.5
9.3
8.6
36.9
454
10
10
10
39
501
PRODUCTIONINVESTMENTPROGRESS
The projects total amount of recoverable oil (sometimes called proved oil reserves) remains
approximately 900 million barrels, but the rate of extracting the oil from each well has been
lowerthanoriginallyexpectedduetothechallengescreatedbytheloosesandandfragmented
natureoftheoilbearingformationsfoundintheDobaBasin,andconsequentlyadditionalwells
havebeenrequired.
Theprojectadded56newoilwellsinthelast12months,with25wellsaddedinthelasttwo
quarters of 2012. A total of 666 production wells were on line at year end 2012. Additional
wellshelptheprojectovercomethelowmobilityoftheDobaBasinoil.Lowmobilitylimitsthe
effective draining radius of each well, requiring that wells be positioned closer together for
optimumextraction.
The high pressure water injection program continues and a total of 61 water injection wells
were on line at year end to support the program. Water makes up about 90% of the fluid
extracted from project oil wells and is reinjected deep underground back into the field to
maintain pressure and support continued production. The high pressure water injection
programaddressesthedropinpressurethathastakenplaceintheDobaBasinoilfieldsasoil
wasextracted.Pressuremustbemaintainedinordertosustainproductionlevels.
TheDobaBasinoilresidesinunconsolidatedsands,producingfineparticlesthatmigratetothe
wells and clog the producing zones. Techniques to counter this problem include well
stimulations to backwash the pores in the oil bearing formation in addition to upgrades and
repairsofsubsurfacemachinery.Theprojectswellworkteamconducted850renovationand
enhancementproceduresonoilwellsinthelasttwelvemonths,290oftheminthesecondhalf
of2012.
15
ReportableEnvironmental
ManagementPlanSituations
2012 was a record year for Environmental Management Plan (EMP) compliance, with the
projectrecordingzerononcompliancesituationsinthesecondhalfof2012.TheEMPsetsout
the criteria for identifying noncompliance situations. The total number of noncompliance
situations for the year was four. Three were identified at Level I, an early warning indicator
intendedtodetectissuesbeforetheyrepresentanylastingimpacttoasensitiveresource.
One Level II noncompliance situation occurred in the first half of 2012, when a contractor
responsible for right of way maintenance (Bantou) repeatedly failed to pay its workers in a
timely manner. The case was resolved in June after all outstanding payments were made.
Informationaboutthecriteriaforclassifyingnoncompliancesituationsisavailableattheend
ofthissection.
MonthlyAverageNonCompliance
Situations
CompliancePerformanceIndex
17
ReportableEnvironmentalManagementPlanSituations
Q3ANDQ4REPORTABLESITUATIONS
TotalReportableSituationsbyCountry
Chad
Cameroon
Q32012
LevelII LevelIII
0
0
0
0
LevelI
0
0
Total
Total
0
0
LevelI
0
0
Q42012
LevelII LevelIII Total
0
0
0
0
0
0
0
2012REPORTABLESITUATIONSSUMMARY
2012ReportableSituationsbyCountry
TotalReportableNon
LevelII
LevelIII
ComplianceSituations
0
0
0
LevelI
TotalReportable
Spills
0
Chad
Cameroon
Total
2012NonCompliancebyCompany
LevelI
LevelII
LevelIII
Total
COTCO
BANTOU
2012NonComplianceSituationsbyCategory
LevelI LevelII LevelIII
18
Total
AirQualityMonitoring
Socioeconomic
AerialSurveillance
Total
ReportableEnvironmentalManagementPlanSituations
CONTEXT:EMPREPORTING
TheprojectsEMPincludesreportingstandardsfornoncompliancesituationsandforspills.The
standards provide methodical and consistent mechanisms for measuring performance on
environmentalprotectionandspillprevention.
NonComplianceSituations
The projects threelevel ranking system for EMP noncompliance situations was designed to
provideanearlywarningmechanismtodetectissuesandhelpcorrectnoncompliantbehaviors
andpracticeswellbeforetheybecameseriousenoughtocausedamage.
Level III
Serious
Impact to
an identified
sensitive resource
Level II
Expeditious Action Required
Could give rise to a serious impact

to an identified sensitive resource
Level I
Early Warning
No significant impact to an identified sensitive resource, but
not consistent with the EMP
This pyramid illustrates the projects early warning system approach for identifying and
managing EMP noncompliance situations. The first two levels serve to alert the project to
potential environmental impacts. Only the top level, Level III, indicates actual serious
environmentalimpacttoadefinedsensitiveresource.
Spills
TheEMPrequiresthereportingofallspillsequaltoorgreaterthanonebarrelofoil,10barrels
ofproducedwateror100kilogramsofachemical.
19
EMPMonitoring&Management
Program
Highlights from 2012s EMP Monitoring and Management Program include the continued
implementationofavarietyofmonitoringprogramsaspartoftheprojectsdefensesystemto
ensuretheintegrityofitsinfrastructurefromKomtoKribi.Theseprogramsincludecorrosion
monitoringandcontrol,groundwatermonitoringandaerialpatrols.
2012alsomarkedthesuccessfulconclusionoftheprojectsPhDscholarshipprogramwiththe
Camerooniangovernment.
CORROSIONCONTROL:PROTECTINGUNDERGROUNDINFRASTRUCTURE
Similar to a giant network of lowvoltage underground
lightningrods,theprojectscathodicprotectionsystem
defends thousands of kilometers of project pipelines
from corrosion, a naturallyoccurring phenomenon
whenmetalsareplacedintheground.Thesystemacts
asanadditionallayerofprotectionforthehighstrength
carbon steel piping which is already coated with layers
ofanticorrosionprotectivematerials.
The cathodic protection system uses equipment that
directssmallelectricalcurrentsthroughpiecesofmetal
whichhavebeenstrategicallyplacedundertheground
near pipelines, protecting them for up to several
kilometers. Project specialists regularly monitor the
various cathodic protection system components (left),
which can detect even slight changes in ground
chemistrythatmightindicateapotentialconcern.
21
EMPMonitoring&ManagementProgram
GROUNDENTRYMONITORING:REGULARVISUALINSPECTIONSTOKEEPTHEPIPELINESAFE
In addition to monitoring the cathodic protection system, which operates around the clock,
regular inspections are conducted at all locations where project pipelines enter or exit the
ground. These areas are particularly important to monitor because they can be impacted by
humanactivity,sharpstones,rainfallordifferencesinthedensityofsurroundingsoilsallof
whichcanaffecttheintegrityofthepipeline.Toinspecttheair/soilinterface,themonitordigs
atrenchtoensurethepipesfactoryinstalledanticorrosioncoatingsremainintactaboveand
belowground.
Cathodicprotectionisaveryimportantbackuptotheprimary
lines of defense the quality of the pipe material and its
protectivecoatings.Thisjobischallenging,butrewarding,as
the company relies on us to ensure the pipeline remains
safeguardedfromanycorrosionrelatedissues.
MaoualeMbainaiwala,CorrosionTechnician
22
AERIALPATROLS:ALOWALTITUDEAPPROACHTOMAINTAININGPIPELINEINTEGRITY
EMPmonitorsconductlowaltitudeairborneinspectionsoftheentirelengthofthepipelinein
Chad and Cameroon to detect any potential issues with the right of way. Erosion, exposed
pipeline, leakage, unauthorized activities and encroachment can oftenbe easily spotted from
the air. Monthly foot patrols are conducted to supplement the aerial surveys and to further
investigatepotentialproblemsidentifiedduringtheflights.
The patrol team usually includes three people: a spotter who conducts a visual scan of the
pipeline right of way (ROW), calling out potential issues; a colleague who tracks the GPS
coordinates when an issue is spotted; and a third person to record the data that will be
compiled after the flight. A representative from the Cameroonian governments Pipeline
SteeringCommittee(CPSP)participatesinthepatroltoobservetherightofwayandverifythat
theworkisbeingconductedproperly.
23
GROUNDWATERTESTING:NOPROJECTRELATEDIMPACTS
Specialmonitoringwellsneartheprojectsinfrastructurehelpensurethatgroundwaterinthe
Oilfield Development Area (OFDA) is not affected by project activities. The monitoring wells,
often a second, third or even fourth line of defense against contamination from project
facilities,haveneverdetectedcontaminationsincecrudeproductionbeganin2003.
The wells, which are placed between project infrastructure and nearby villages, have always
been tested on a monthly basis. However, because of the projects perfect record, the EMP
departmentsgroundwatermonitoringteamwillbegintestingnoncriticalwellsonaquarterly
basisin2013.Criticalwells,suchasthosenearthewastemanagementarea,injectionwellsand
fuelstation,willcontinuetobetestedonamonthlybasis.
The groundwatermonitoringteam
purgeswellsatleastthreetimes
beforesamplesaretaken(left),
ensuringthatfreshgroundwateris
sampled.Theteamchecksforany
abnormallevelsofchemical
characteristicssuchasacidity,
hydrocarbonandchlorinecontent.
Intheeventofanyunusualresults,
arapidresponseinvestigationand
remediationstrategywouldbe
triggered.
Themainreasonwedothismonitoringistoprotectthelocalcommunitiesbymakingsure
the project doesnt negatively impact the groundwater. Among other things, this regular
monitoringensuresthatifthereisanyissue,wecanpromptlyconductaninvestigation,and
thedatawerecordallowsustoquicklydesignandimplementanynecessaryremediation.We
arereadytogoimmediately,butsincetheprojectstartedtenyearsago,weveneverhadto
becalledinto(mitigation)action.AbdelrazikMoustapha,GroundwaterMonitoringLead
24
PROJECTSTRENGTHENSEMPTEAMTOMANAGERIGHTOFWAYINTERACTIONS
To reinforce the team that manages the increasing number of interactions between the
pipeline right of way (ROW) and new infrastructure across Cameroon, pipeline operator,
COTCO, has hired and trained a fulltime EMP ROW Monitor. The monitors responsibilities
include tracking the number, type, and location of all interactions. The monitor also advises
third party developers on technical specifications and works with the Cameroonian
governments Pipeline Steering and Monitoring Committee (CPSP) to ensure developer
compliancewithpipelineintegritypolicies.
Anexampleofnewinfrastructureincludesthenewfourlanehighwaythatwillsoonintersect
thepipelineandconnectYaoundwithDoualatohelpfacilitatetradeandtravelinCameroon.
Becausethis200kilometerhighwaywillrequirecutting,diggingandmovingheavyequipment
in close proximity to the pipeline, COTCO and the construction company are collaborating to
ensure the pipeline remains secure. As it does with other third party developments that
interact with the pipeline, COTCO has hired a spotter to note any potential issues that arise
duringconstruction.
Thecontractorwhoisbuildingthishighwayisas
concerned as we are about ensuring the integrity
ofthepipeline.Sotheyhaveaskedustohelpthem
physically verify its depth and location. This is a
good thing, because it shows they have the right
attitudeaboutinteractionswithdifferenttypesof
infrastructure. Fulbert Ngatchi, EMP ROW
Monitor(inblue)
Only when we have verified the pipelines depth

and location will we proceed with devising
solutionstobuildthisroadsafely.Weareworking
togethertomanageanyissuesthatcomeupwhile
trying to prepare for our groundbreaking
ceremony with President Biya. Niu Ming Shan,
Project Manager, China First Highway
EngineeringCo.(inpink)
Iamwiththeconstructioncompanyeveryday.Iobservetheir
activitiesandtheyproactivelytellmewhattheyaredoing,even
askingformyadvicewhenitcomestopossiblepipelineinteractions.
Theyareawareoftheregulationsandrespectfulofthem.
EnougaOngueneGregoire,ROWSpotter
25
LOMPANGARMODIFICATION:NEWOPPORTUNITIESFORARCHEOLOGICALDISCOVERY
Deep in Cameroons Deng Deng forest, an archeology team is conducting research at a
temporarycampsite.Overthenexttwoyears,thesitewillserveasabaseformorethan200
workerswhowillmodifytwo13kilometersectionsoftheprojectsoilpipelinetoaccommodate
oneofCameroonslargestinfrastructureprojectstodate:theLomPangarHydropowerProject.
During a projectfunded survey of the access road and camp in 2012, the team identified
multiplesitesofarcheologicalsignificance.
A number of artifacts uncovered during the survey, including the byproducts of ancient iron
smeltingfurnacesandfragmentsofpottery,willbeusedtohelpscientistsreconstructapicture
ofhumanactivityandtheenvironmentintheareaseveralmillenniaago.Forexample,knowing
where furnaces were located will help the archeologists understand the social structures and
practicesofancientpeoplesinthearea,andanalyzingburntwoodfragmentsfromthefurnaces
cansuggestwhatthetopographywaslike.Datafromthesitescanalsobeaggregatedtohelp
answerthequestionofwhethertheironmayhaveoriginatedinEuropeorAfrica.Formoreon
theprojectssupportoftheLomPangarHydropowerProject,pleaseseethesectiononLocal
BusinessDevelopment.
Archeologistsworking
withtheprojectuncover
ancientpiecesofirona
byproductofcenturiesold
smeltingpracticesatthe
475thsiteofarcheological
significanceinCameroon
discoveredsince
constructionofthe
pipeline.Ateachoneof
thesesites,astrictprocess
ofmapping,
documentation,
verificationandanalysisis
followedbythe
archeologyteamand
COTCOtoensureintegrity.
Ifthepipelinehadneverbeenconstructedhere,itwould
haveeasilytakenusover100yearstofindthequantityof
artifactsthatwehave.ThisisbecauseinAfrica,many
governmentsdonothavesufficientresourcestofund
research,soarcheologistslikeusmustwaituntilahuge
opportunitylikethiscomestolearnaboutourhistory.
OlivierNkonkonda,Archeologist(left)

26
REMAININGCOTCOPHDSCHOLARSHIPRECIPIENTCOMPLETESSTUDIES
Sixyearsago,AkamaPierrerespondedtoacallforapplicationsfrom CameroonsMinistryof
CulturetopursuePhDstudiesinarchaeology.ForPierre,thiswasamajorsteptowardpursuing
hischildhooddreamofstudyinggreatcivilizations.
CurrentlyalecturerattheUniversityofYaound,AkamasuccessfullycompletedhisPhDthesis
at the University of Brussels last year. He is the third Cameroonian archeological student to
receivethedegreethankstoascholarshipfromCOTCO.Thescholarshipprogramwaspartof
an agreement between Cameroons Pipeline Steering Committee and the projects pipeline
operator in Cameroon, COTCO. Below, Akama (center) celebrates a successful thesis defense
withhisuniversityprofessors,representativesfromCPSPandCOTCO.
ThisPhDprogramhaschangedmylife,evenbeyondthefinancialsupport.Itallowedmeto
traveloutsideCameroonandwritemythesisatagreatEuropeanuniversity.Italsohashelped
mediscoverCameroonsculturalandecologicaldiversityfromtheforesttosavanna.Ivealways
knownsinceIwasachildthatIwantedtostudyarcheologyandpaleontology,becauseIbelieve
thatknowingourpastallowsustounderstandourpresentandplanabetterfuture.Ihaveto
thankCOTCO,CPSP,myprofessorsandmembersofmythesiscommitteeforalloftheir
support.Dr.AkamaPierre,Lecturer,UniversityofYaoundI,DivisionofScience,cole
NormaleSuprieure
27
STACKEMISSIONTESTING:FREQUENTMONITORINGHELPSENSUREEMISSIONSCOMPLIANCE
ResultsfromemissionstestsconductedbyindependentexpertsinNovembershowedthatall
three incinerators at the Kom Waste Management Facility are meeting World Bank
established standards. Testing emissions from the incinerators exhaust stacks is conducted
everythreeyearsundernormalcircumstances.If,aswasthecasein2011,atestresultshows
noncompliance,testingisconductedeveryyearuntilcomplianceisachieved.
Withourhazardouswasteincinerator(picturedabove),we
usetheburnertoburnthewasteasefficientlyaspossibleand
ascrubbertocleantheexhausttointernationallyrecognized
standards.Withtheburnerandthescrubberoperating
consistently,weexpectthatourenvironmentalperformance
willbeevenbetterthanpreviously.Itsimportanttohaveall
ofourincineratorsworkingproperly,becauseweneedtodo
ourbesttoprotecttheenvironmentforthesurrounding
communities.SamDadoumnadji,KomWaste
ManagementFacilityCoordinator
28
WASTEMANAGEMENTSTATISTICS
Theprojectutilizesarangeoftechniquesfordisposalofnonhazardouswaste,asdescribedin
the EMP (e.g., incineration, landfill, recycling and third party contractors) and shown in the
followingtable.
NonHazardousWasteManagement(Tonnes)
Q12012
Q22012
Q32012
Q42012
12Month
Total
DomesticGarbageIncineratedOnSite
349
754
558
510
2171
InnocuousSolidWasteBuried(landfill)
605
56
151
123
935
RecycledtoLocalCommunities
441
293
387
428
1549
SenttoApprovedThirdPartyFacilitiesfor
ReUse,RecyclingorDisposal
488
156
243
1119
2005
1,883
1,259
1,339
2179
6660
Total
Atyearend2012,theprojecthad1107tonnesofoilycontaminatedsoil(hazardouswaste)in
its hazardous waste facility. The project is working with BOCOM, a waste management
company,toensureappropriateprocessinganddisposalofthiswasteinventory.
29
Safety
Tragically, a serious accident occurred in August resulting from a flash fire during well
maintenance performed by a contractor. In addition to two fatalities, there was one critical
injuryandtwofirstaidcases.Theprojectconductedanindepthinvestigationintothecauseof
theaccidentandhastakenmeasurestohelppreventsimilaraccidentsinthefuture.Reportson
thesepreventionmeasuresandotherdetailsofthisaccidentareprovidedlaterinthissection.
The Chad/Cameroon Development Project follows United States Occupational Safety and
HealthAdministration(OSHA)guidelinesforrecordingaccidentsandinjuries,eventhoughthe
projects activities take place outside the United States. The OSHA guidelines provide the
project with a comprehensive, consistent, internationally recognized standard by which the
projectssafetyperformancecanbeevaluated.
In addition to the incident described above, another accident occurred on project grounds in
thethirdquarterof2012,whenateenageboyaccidentallydrownedinrainwaterwhichhad
gatheredinareservepitatanunusedwellpad.Eventhoughthisincidentwasnotreportable
underOSHAguidelines,theprojectconductedafullinvestigationandanumberofpreventive
measureshavebeenimplemented.
TotalRecordableIncidentsper
200,000WorkHours
RecordableIncidentRate
TheRecordableIncidentRate,keyindustryindicator,measuresoverallsafetyperformancebycapturingeven
minorinjuryaccidents.Foryears,theprojectsRecordableIncidentRatehasbeenwellbelowtheaveragerateof
theU.S.petroleumindustryasawhole,recordingarateoflessthanhalfofthebenchmarkin2012.Therate
measuresrecordableincidentsper200,000workinghours.TheindustrybenchmarkfortheU.S.petroleum
industryisderivedfromreportstotheAmericanPetroleumInstitutebyparticipatingcompanies.
31
Safety
TEACHINGMOTORCYCLERIDERSINTHEOFDATODRIVESAFELY
While motorcycle taxis play an important transportation role in Chad and Cameroon, many
operatorsdrivewithoutlicenses,properprotectiveclothingorsufficientinstructiononhowto
safelyoperatetheirvehicles.Asaresult,thedriversandtheirpassengersaresomeofthemost
vulnerableontheroads.
A tragic example of this occurred in August 2012, when a motorcycle taxi collided with an
oncomingprojectvehicle,claimingthelivesofthemotorcyclistandhispassenger.Althoughthe
projectdriverwasfoundnottobeatfault,theprojectinitiatedacampaigntoteachmotorcycle
safetyinanumberofOilfieldDevelopmentArea(OFDA)communities.
InstructionalsessionsconductedbyateamfromtheEMP,SafetyHealthandEnvironment(SHE)
andSecuritydepartments,wereheldinKom,Bbdja,MiandoumandDoba.Theworkshops
focusedonteachingmotorcycliststherulesoftheroad,passengersafetyandcargohandling,
the dangers of speeding and practicing defensive driving tactics. Participants were given
reflectivesafetyjacketsforincreasedvisibility.Theprojectplanstoconductfollowupsessions
eachquarterthroughout2013tohelppreventsimilartragediesinthefuture.
32
Safety
Itsimportanttorememberthat
roadsdonotkillpeople,but
peoplekillpeopleontheroads
whentheyarenotsufficiently
trained.Ihaveobservedthe
motorcyclistsbehaviorbefore
andafterthetraining,andthere
isadifference.Ourmotorcycle
taxisnowcarrymore
manageableloadsandmanyare
nowdrivingmoreslowly,
especiallythroughthevillages.
SincethesessionsinOctober,
therehavebeennorecordable
accidentsinourarea.Djerada
Nama,Sousprefect,Miandoum
Canton(above)
In Miandoum, we have created an association to help ensure that anyone providing
transportationservicesforafeewilldososafely.Ifyouwanttobepartofourassociation,you
mustknowhowtorideprofessionally.Weareveryconcernedaboutspeeding,drunkendriving,
andensuringthatenginesareingoodrepair.Ourmembersreceivedalotofinformationfrom
theprojectstrainingsessions,andwewouldloveitiftheprojectcancontinuetoprovidethese
types of sessions periodically. Florent Neurdingam, President of the Miandoum
MotorcyclistsAssociation
33
Safety
DOUALASAFETYCOMMITTEE:TAKINGWORKPLACESAFETYTOTHEHOME
In an effort to expand its Take Workplace Safety to the Home initiative, COTCOs Douala
Safety Committee recently identified and collaborated with the Ecole Publique Cite des
Enseignants,ahighneedsprimaryschoolinDouala,toteachsafetyprinciplestothestudents.
The team, which normally works with COTCOs staff, contractors and neighbors to improve
awareness of safety practices, engaged school leadership and created a safety curriculum for
thechildren.
Iwasveryhappytolearnsomethingsliketowalkonthesidewalknot
theroad,dontlistentomusicwhilewalking,crosstheroadusingthe
paintedareaandwhenthelightforcarsisred.Iseemanypeople
doingthewrongthing,butIwilldotherightthing,becauseIwantto
growuptobeafatherandafootballer.NgallaStebaRoyMartin,
Student,7yearsold(above)
Mygroupdidasketchonfoodsafetyandcholera.Weexplainedwhat
choleraisandhowtopreventit.ItwasfunandIthinkeveryone
learnedfromitIamhappybecauseIwashelpingkeepmyfriends
safe.KetiBinamSorelleGrce,Student,Age8(left)
34
Safety
The team also produced a safetyrelated sketch/playacting competition for the children to
present what they had learned about food, road and home safety to their classmates. The
presentations were evaluated by a panel of judges and winners received stepladders,
rechargeableflashlights,safetyDVDsandsafetybooklets.Inaddition,theschools850students
also received exercise books and pencil cases filled with supplies. Teachers received Tshirts,
andsafetyrelatedDVDsandbooklets.
Ivebeenworkingasaprincipalfor10years,andIve
neverheardofanythinglikethisinCameroon.Fora
companytotakethetimetovisitaschoollikethisis
unheardofwewereonthenationalTVandinthe
newspapers,andnoweverybodyknowsourschool.Now,
otherschoolprincipalshavecometoustofindoutwhat
oursecretistheywanttoknowhowtheycanget
somethingsimilarfortheirschoolaswell.Madame
BassekaNolJeanette,Headmistress,EcolePubliqueCite
desEnseignants
Thisexperiencewasveryenrichingforourgroup.Thekids
were reallyexcited andcommittedand made some great
presentations.Basedonoursuccess,ourGeneralManager
recommended that we continue our work in this area so
weareplanningtobringthistootherschools.Forme,this
committee allows us to share our valuable safety
knowledge and mentality that so many people in
Cameroondontotherwisehavetheopportunitytolearn.
Sidonie Andele, Douala Safety Committee member,
COTCO
35
Safety
SAFETYSTATISTICS
OntheJobInjuries(OSHAReportables)1
Q12012 Q22012 Q32012 Q42012

Fatalities
LostTime
RestrictedWork
MedicalTreatment
FirstAidCases
WorkerHours(thousands)
TrendAnalysis
RecordableIncidentRate
LostTimeIncidentRate
0
0
1
1
9
3,735
0.11
0.00
0
0
1
3
7
3,862
.22
0.00
1
3
1
2
16
3,745
.32
.16
1
0
0
2
4
3,800
.11
0.00
12
Month
Total
2
3
3
8
36
15,142
0.18
0.08
Project
todate
6
31
146
316
2,893
291,045
0.34
0.04
1.
SafetystatisticsincludeEEPCI,TOTCO,COTCO,otheraffiliatesworkingfortheprojectandtheirrespectivecontractors.Theyinclude
incidentinvolvingalocation,propertyoractivitiesowned,controlledorsupervisedbythoseentities.
2.
AverageTRIR&LTIRforlast12monthsandprojecttodate.
TrafficSafetyTally
Traffic
Accidents1
1.
36
Q12012
Q22012
Q32012
Q42012
12Month Projectto
Total
date
12
942
Includesallprojectvehicletrafficincidents,includingthosenotrecordableunderOSHAguidelines.Thetotalincludesminorandmajor
vehicledamageaccidentsplusinjuryaccidents,includingnonrecordables.
Safety
PROJECTRECORDABLEFATALITY
Two Chadians working for a project contractor died as a result of an accident on 5 August,
2012. The incident occurred when gas accumulated in an opentop tank and ignited during
maintenanceofawell.Theresultingexplosioninjuredfiveworkers,twoofwhomsubsequently
passedawayfromtheirinjuries.Theprojectsinvestigationteamconductedacomprehensive
reviewoftheincidentandsubsequentlydeterminedthatatruckadjacenttothetankprovided
theignitionsource.Aswithallseriousaccidents,theteamanalyzedallthefactsoftheaccident
solessonscouldbelearnedtopreventsimilaroccurrencesinthefuture.
ActionsTaken
The investigation found that the contractor had deviated from approved safety procedures,
including failure to use projectapproved equipment, supervisor fatigue and inadequate job
safety briefings and preparation. The following are among the actions taken in response to
thesefindings:
Thecontractorheldgroupsessionswithallofitsworkerstoreinforcesafetyexpectations,
includingimprovedhazardrecognition,compliancewithacceptedpracticesand
participationindailyprejobsafetybriefings
Thecontractorincreasedthelevelofsupervisiononjobsites
Theprojectengagedanexternalconsultanttoassesswhethertheincidentrevealedany
broadersafetycultureissues
Projectandcontractorexpertsconductedapeerreviewafterthreemonthstoassurethat
thestrengthenedsafetyprocedureswerebeingmaintained
Theprojecthasestablishedanongoingengagementandfollowupprogramwiththe
contractorsseniormanagementtoreinforcetheprojectscommitmenttosafety
37
Safety
CONTEXT:WORKPLACERISKMANAGEMENTANDACCIDENTPREVENTION
Safetyexpertsuniversallyagreethatthebestresponsetoanaccidentistoactinadvanceto
preventtheaccidentfromhappeninginthefirstplace.Thatphilosophyisthecornerstoneof
the projects safety program. The project strongly reinforces the concept of Nobody Gets
Hurt, and that we are all Risk Managers. The expectation is centered around all workers
actively identifying hazards and helping to remove and/or mitigate hazards from their work
areas.
Workforcerisktolerancebehavioriscontinuouslyimprovedreducingatriskbehaviors
andencouragingworkerstoneverplacethemselvesorothersatriskandtakingthe
necessarytimetocompletethejobsafelywiththeassistanceofworkaids,approved
procedures,JobSafetyAnalysis(JSA)andLastMinuteAssessmenttools(Standback5x5,
STOP,JOBS).
TheimportanceoffollowingapprovedproceduresisemphasizedtopreventanErosionof
Standardsenvironmentnotaskshouldeverbeexecutedwithoutfollowingtheestablished
workmanagementpractice,taskprocedureandadheringtospecificJobSafetyAnalysis
(JSA).
Itisimperativetoobtainandsustainaworkplaceculturewhereeveryoneisobligatedto
interveneiftheyobserveacolleagueplacingthemselvesoranyoneelseatrisk.Thisrequires
anenvironmentwhereeveryoneiswillingtoapproachothersandinterventionsare
welcomedwhenanatrisksituationoccurs.
Allprojectworkersreceivecomprehensivejobsafetytrainingandmustwearappropriate
personalprotectionequipment.Dependingontheirassignments,manyworkersarealso
certifiedfollowingtheirtrainingtoensuretheycanperformtheirjobfunctionscorrectly
andsafely(e.g.,workinconfinedspaces,operatingspecialequipment).
Workersandtheirsupervisorsalsoreceiveintensivetraininginthereportingofnearmisses
andworkplacehazards.Thesereportsofaccidentsthatdidnothappenareespecially
valuablesincetheyhelpidentifypreventionmeasuresbeforeanyonehasbeenhurt.
Anintensiveprojectwideaccidentpreventioneffortincludesbothworkersandproject
areacommunities.Roadsafetyhasbeenaparticularemphasis,andthereforetheaccident
preventioneffortsincludetrainingindefensivedrivingtechniques,emphasizingsafety
awarenessincommunitymeetings,distributingposters,stationingflagmenatkey
intersections,postingroadwarningsigns,placingspeedbumpsattheentrancestovillages,
andinstallingvehiclespeedgovernors.
38
Safety
CONTEXT:ACCIDENTRESPONSE,INVESTIGATION&FOLLOWUP
When an accident does occur despite these and other prevention measures, the projects
incidentresponseandinvestigationproceduresareactivated.
Theprojectappliesastandardprocessforallaccidents,whetherornottheyfallwithinthe
projectsOSHAbasedsafetyperformancereportingguidelines.Theprocessincludesinitial
emergencyresponse,thoroughcauseinvestigationandanalysis,andfollowupactionsaimedat
tryingtopreventfuturesimilaraccidents.
Theresponseproceduresfirstensureanimmediateandcompleteemergencyresponse.The
responseproceduresprovideforrescueequipment,trainedmedicalpersonnel,
managementrepresentatives,accidentinvestigators,locallawenforcementauthorities,
andotheronsceneneedsasappropriatetotheseriousnessoftheaccident.
RootCauseinvestigationsareconductedforallaccidents,evensmallones,inorderto
identifyanddocumentsafetypreventionlessonsforthefuture.Formajoraccidents,ateam
ofexpertsandmanagersisassignedtoperformfactfindingandanalysis.
Theinvestigationteamsconductaformalanalysisofthevariousfactorsthatcontributedto
theaccident.Accidentsusuallyinvolveseveralcontributingfactorsanditisimportantto
identifyallofthem.TheinternationallyrecognizedapproachcalledTapRootAnalysisis
generallyusedforthiscauseidentificationandevaluationprocedure.Inmanycases,
especiallyifanaccidentisfelttohavehighpotentialfordevelopingnewprevention
methods,afresheyesinvestigationteamfollowsupbyreviewingandauditingthe
findingsofthefirstteam.
Projectaccidentinvestigationsproducealistofrecommendationsaimedatpreventing
futuresimilaraccidents.Remediesmayincludesuchstepsasenhancingworkertraining,
revisingequipmentprocedures,andcorrectinglocalconditionsthatmayhavecontributed
totheaccident.
Projectsafetyadvisorsmakesurethatthelessonslearnedgettothefieldthroughanarray
oftechniquesthatincludestoolboxtrainingmeetingsatthestartoftheworkday,safety
posters,accidentalertbulletins,increasedemphasisintrainingandcertificationprograms,
andinsomecasescommunityawarenesssessions.
Dependingonthecircumstances,theaccidentresponseandfollowupprocessalsomay
includemeetingswithaccidentvictimsandtheirfamilies,withlocalauthoritiesactingas
facilitatorsandwitnesses.
39
Safety
CONTEXT:STANDARDSFORSAFETYREPORTING
MeasuringSafetyPerformance
The tabulation and statistical analysis of accident reports plays a crucial role in accident
preventioneffortsforlargeindustrialprojectsliketheChad/CameroonDevelopmentProject.
Likemanyothercompanies,ExxonMobilhasselectedthewidelyrecognizedU.S.Occupational
Safety and Health Administration (OSHA) guidelines as a standard for measuring safety
performance worldwide. Thus, statistics from the project can be compared with those from
othercompanylocations.
OSHA guidelines are also widely used by many other oil companies and a number of similar
industries, thus providing additional benchmarks that can help measure the projects safety
performance.
InadditiontoworldwideapplicationofthestringentOSHAguidelines,Essoalsocomplieswith
anylocalrequirementsforcompilingandreportingaccidentsandaccidentstatisticsthatmay
beinforceinthecountrieswhereitoperates.Therefore,theprojectmaintainsandanalyzesan
extensiverangeofsafetystatistics,eventhoughthegovernmentsofChadandCameroonhave
notyetadopteddetailedsafetystandardssimilartothosefoundinindustrializednations.
TransparencyofResults
ImmediateaccidentreportingbytheprojecttoauthoritiesinChadandCameroonisconsistent
with, and in some cases superior to, transparency practices followed in most industrialized
nations.
Allmajoraccidents,includingonesthatfalloutsidetheOSHAaccidentreportingguidelines,
are immediately reported to local authorities for investigation. Local law enforcement
authorities generally are on the scene shortly after a major accident, and the project
cooperates fully in all police investigations. Thus, the projects reporting of accidents is
much the same as in the U. S. and many other countries, where police, fire or other
emergencyagenciesarecalledtomajoraccidentscenes.
Inaddition, theprojectsOSHAbasedsafetyperformancestatisticsarepublishedinthese
ProjectUpdatereports.AsindicatedinthePreface,thereportsarepostedontheInternet
(www.essochad.com) and hundreds of printed copies are distributed to a wide array of
stakeholders, including NGOs, the two host countries, as well as the international
community.
40
Consultation&Communication
As part of its standard practice, the project held hundreds of consultations in Chad and
Cameroon in 2012 in communities near project areas. The sessions covered a wide range of
topics, including outlining a new claims process in the Oil Field Development Area (OFDA),
educatingvillagersaboutthehazardsofsettingbrushfiresalongthepipelineinCameroonand
anAIDSeducationcampaignalongthepipelineinChad.
The Cameroon Pipeline and Steering Committee (CPSP) and COTCO are committed to
conductingjointvillageinspectionseverymonth,withthegoalofvisitingeveryvillagealongthe
lengthofthepipelineinCameroonatleastthreetimesperyear.
Inbothcountries,theconsultationsessionshelpkeepeveryoneabreastofcurrentissuesand
ensure steady contact and open communication between the project and its neighbors. For
moreinformationonpublichealthfocusedconsultationsconductedbytheproject,pleasesee
thesectiononHealth.
ConsultationMeetingTally
12Month
Total
Q12012 Q22012 Q32012 Q42012
Chad
Sessions
20
47
164
31
262
Attendees
791
4,839
1,370
2,815
9815
Cameroon
Sessions
195
253
155
207
810
Attendees
2,576
4,022
1,716
1,809
10,123
41
PROJECTOUTLINESANEWPROCESSFORHANDLINGCLAIMSINOFDACOMMUNITIES
InNaikam,asmallvillageintheheartoftheOFDA,anEMPteamdiscussesthenewstreamlined
claimsprocessthattheyhaveputintoplace,benefittingthecommunityandtheproject.The
new process is one of several changes within EEPCIs EMP department that have reduced its
claims backlog by 80%. During the meeting like hundreds of meetings the project conducts
within the OFDA each year two members of the EMP team work with a Local Community
Coordinatortocoveranumberofrelevanttopicsandansweranyquestionsthevillagershave
inadditiontotheclaimsprocess.FormoreinformationabouttherecentchangesintheChad
basedEMPdepartment,pleaseseethesectiononLandUseintheOilfieldDevelopmentArea.
Wealllearnedsomethingtoday.Eventhoughtheywerentontheagenda,someoftheother
topicsthatwehadquestionson,suchaseligibilityforresettlement,weremadecleartoday.The
newclaimsprocessisagoodonebecausethechiefisnowinvolved,whichmeansthatwecan
helpadvocateforourpeople.Havingtheguyscomebytoourvillagewasaprivilegeforusso
earlyinthenewyear.NgartombayeBalise,Chief,NaikamVillage(upperright)
Ithinktodayssessionwasexcellent.Everyonereceivedour
messages well, asked good questions and seemed to
appreciatethemeeting.Thetimingwasrighttodiscussallof
thesetopicsastherewillbesomeprojectworkhappeningin
this area. As a Community Coordinator, these meetings are
satisfyingformebecauseIcanhelpthesepeoplemanyof
whomarefriendsandrelativesgettherightinformation.
NodjiramNdoloumBonheur,LocalCommunityCoordinator,
KomCanton
42
PROTECTINGTHEPIPELINEBYEDUCATINGVILLAGERSABOUTTHEDANGERSOFBRUSHFIRES
Last year, the project held a meeting in Dompta Village, just outside Pump Station 2, to
highlight the potential dangers of brush fires. Its a common practice in both Chad and
Cameroon to set brush fires for hunting, grazing and farming purposes. In Cameroon, the
practiceisillegalbutthelawisrarelyenforced,andmanyvillagersinremoteareasarenoteven
awareofthelaw.Meetingslikethisoneareheldeveryyearatthebeginningofthedryseason
toeducatevillagersabouttheenvironmental,safetyandhealthrisksofburningbrush,aswell
asthepotentialfornegativelyaffectingprojectinfrastructure,e.g.,pipelinesandfueltanks.For
more about project efforts to maintain pipeline integrity, please see the section on the EMP
Monitoring&ManagementProgram.
Whileweveneverhadanyfacilities
damagedbyfire,onecanimaginethe
riskoffirecomingclosetoanarea
whereevencellphonesareprohibited.
Becausethisissuchanoldtradition,it
maynotbepossibletostopallburning
alongthepipeline,butthankstothese
consultations,wehavealreadyseen
reductionsintheamountofbrush
burning,especiallyhereinDompta.
DjikaMbele,CommunityRelations
Officer(notpictured)
Brushfires,oftensettostimulategrowthofnewgrassforcowstoeat,canbeuncontrolledandhazardous.
Inthedryseason,weusuallyburnaperimeteraroundourfarmstoprotectfromoutsidefires.
We,whoarehereattendingthismeeting,understandthemessagethatitisnotgoodtomake
fires,butitisnoteasytochangeeveryonesmind.However,Iwilldomybesttobean
ambassadortohelpspreadthemessage.GadjiPierre,Farmer,DomptaVillage(aboveright)
43
CONSULTATIONS:OPPORTUNITIESFORVILLAGERSTOMAKETHEIRVOICESHEARD
The Cameroon Pipeline and Steering Committee (CPSP) and COTCO are committed to
conducting joint village inspections regularly, with the goal of visiting every village along the
length of the pipeline in Cameroon at least three times per year. The visits are a valuable
opportunityforvillagerstointerfacewithprojectrepresentativesandgovernmentadvocates,
askquestionsandraiseanyconcernstheymighthave.Onceaconcern,orgrievance,israised,
COTCOofficiallyrecordsitandbeginstoworkwiththevillageandCPSPtodevelopasolution
thatisacceptabletoallparties,withCPSPadvocatingonthevillagersbehalf.
Above,duringaroutineconsultationinthevillageofMbokonearPS2,thechief(above,center)
tooktheopportunitytorequestanadditionalwaterwellforhisvillage.Heexplainedthatwhile
COTCO had previously delivered a well and school classroom to the village as part of its
community compensation program, more access to water was needed for this village of 600.
SinceMbokoisnoteligibletoreceiveadditionalcommunitycompensationatthemoment,the
projectsCRO,DjafarouGarba(picturedabove,onleft),willrecommendthatMbokoparticipate
inarecentcommunityinvestmentprogrambyCOTCO,whichisinstallingdozensofnewwater
wellsincommunitiesalongthepipeline.Formoreaboutthisprogram,pleaseseethesection
onCommunityInvestment.
44
Womenwaitinlinetoretrievewaterfromthetownsonlywell,previouslyinstalledbytheproject.
Meetingslikethisonearehelpful
becausewehavereceived
informationandmaderequests,
andCOTCOhaslistened.COTCO
solvedtheproblemoftheoriginal
waterwell,butourvillageissobig
thatonewellisnotenough.Ifthe
womendontarriveearlyenough
theygetnowater.Wearevery
happytohearaboutthisnewwater
wellprogram,andweareconfident
thatthecompanywillmakeagood
efforttohelpus.DogariIdrissou,
Chief,MbokoVillage
45
Compensation
Compensation paid to individuals for land useby the project in the last four quarters totaled
over750millionFCFA(over$1.5million)incashandinkindpayments.Almost15.5billionFCFA
(over$30million)inindividualcompensationforlandusehasbeendisbursedsincetheproject
began. While all major project infrastructure construction was completed some time ago in
both Chad and Cameroon, the project still has ongoing compensation commitments that it
maintains.
An increase in compensation in Cameroon was recorded in the third quarter, due to tree
cuttingactivitiesinBelabo.However,compensationcommitmentsingeneralhavebeenstable
foryearsatlevelswellbelowthosefrom2000to2003,whenconstructionwasunderwayfor
thecentraloilfieldfacilities,theinitialoilfielddevelopment,andtheexportpipelinesystem.
TallyofIndividualCompensation(MillionsFCFA)
155.0
2.0
326.0
2.3
107.3
20.3
152.7
2.6
12
Month
Total
741.0
27.2
157.0
328.3
127.6
155.3
768.2
Q12012 Q22012 Q32012 Q42012

Chad
Cameroon
Project
Total
Projectto
Date
9,724.0
5,735.0
15,459
47
Compensation
TREECUTTING:COMPENSATIONFORBELABOFARMERS
Theprojectcompensatesresidentsforthetemporaryandpermanentuseofland,andalsofor
trees that must be removed from a particular section of land. Compensation rates were
originally agreed upon by the project, the World Bank, local NGOs, and the governments of
ChadandCameroon,thepaymentscaletakingintoaccounttheageandtypeoftree.
WhencropproducingtreesneartheprojectsairfieldatPumpStation3inCameroongrewtall
enough to interfere with flight activity, the project needed to remove them. Individuals from
nearbyBelaboVillagewhofarmthelandwereconsultedabouttheissueandagreedtoaplan
tocompensatethemforthelossofthetrees.Today,thefarmersstillworkonthelandgrowing
maize,plantains,peanutsandpotatoesnoneofwhichgrowtallenoughtointerferewiththe
airfields landing approach. While the farmers previously produced greater yields per square
meter from their mature mango, coffee, banana and palm trees, the compensation for their
removalprovidedthemwithmoremoneythantheytypicallycouldearninseveralyears.
Whenweheardaboutthetreecuttingandassociated
compensation,thiswasverygoodnewsforus,aswereceived
moreforourtreesthanIcouldeverhopetoearninseveral
years!Thecompensationprocessandpriceswerefairand
provideduswithalotofadvantageandprofit,andIwasable
toinvestsomeofitintomyotheragriculturebusiness.
DjonkoloThomas,farmer,BelaboVillage(left)
Foryears,weneverknewthetreeswouldneedtobecut.In
thepast,othercompanieshavetakenourlandwithoutany
compensation,sowefeelveryhappy,becausewehadnoidea
thatacompanycouldcomeinandcompensateusfortheland
likethis.AdangAthanase,Chief,BelaboVillage(right)
48
LandUseintheOilfieldDevelopmentArea
In2012,theprojectachieveditslowestlandusefootprintinyearsandreduceditsbacklogof
land and compensationrelated grievances by 80%. These achievements were the result of
significant revisions in the projects land management plan and recent restructuring of the
Environmental Management Plan Department. In addition, a successful supplemental
community compensation pilot project created a productive rice field in Dokaidilti and opens
thewayformoresimilarfieldstobecreatedaroundtheOilfieldDevelopmentArea(OFDA).
SUPPLEMENTALCOMPENSATION:ASUCCESSFULPILOTPROJECTINDOKAIDILTI
ThevillageofDokaidiltiproducedsixtonsofricein2012eventhoughitcultivatedjust25%of
thenewfieldtheprojectcreatedthroughitssupplementalcommunitycompensationprogram.
PhaseIofthepilotprojectinvolvedclearingandpreparing3.5hectaresofland,andproviding
seedsandinsecticides.Inaddition,farmersreceivedonfieldtraininginplanting,seedstrategy
andpestmanagement.
The projects supplemental community compensation program augments existing
compensation programs by providing impacted villages in the project area with development
projectstomakeupfordiffuseandhardtoquantifyindirectimpacts.
49
Withplentyofseedandexperiencefromthisyearsharvest,thefarmersarelookingforwardto
plantingall14hectaresinthenextrainyseason,whichbeginsinMay.Theprojectwillprovide
an additional year of followup support, including pesticides, further training in production,
accountingandstoringproduce.Thesuccessofthisprojecthaspromptedplansforadditional
rice fields in other communities around the OFDA. Below, the chief of Dokaidilti and several
membersofitsfarmersassociationsurveytheirrecentlyharvestedricefields.
Whenitwastimeforoursupplementalcompensation,theprojectbroughtusacatalogwith
severaloptions,andfromthese,wechosethericefield.Wechosethisbecauseweknewwe
wouldhaveenoughwatertorunthefieldfromthenearbyriver.Wearelookingforwardtothe
followuptrainingthatwillteachushowtomanageourproductionandfinancesforthefuture.
Ourproductionexceededourexpectations,andwehopetogetanevenearlierstartonnext
seasonsowecanguaranteeanevenstrongeryear.Allowingustochooseourcompensation
projectshowsthattheprojectcaresaboutimplementingprojectsthataremosthelpfultoour
community.NgardissalEmmanuel,Chief,Dokaidilti(above,right)
Wechosethericeprojectforourcommunityssupplementalcompensationprogrambecause
thesoilforourexistingmilletandsorghumfarmswasweakening.Withricehowever,ifweget
goodrain,weknowwewillgetgoodproduction.Thisyear,wesoldallthericetoothervillages
andwillreinvesttheproceedsintothefarm.Traditionally,wejustsowedtheseedsinarandom
pattern,butthisnewplantingtechniquemakesiteasiertomaintainthefieldsandharvestthe
rice.DokaidiltiAssociationofFarmers(precedingpage)
50
REINFORCEMENTCOMPENSATION:ASAFETYNETFORSUCCESS
While, the projects resettlement compensation program has been successful in restoring or
improving livelihoods in at least 75% of cases, the remaining 25% have required further
reinforcementtraining,equipmentand/orlivestock.In2012,theprojectfocuseditseffortson
helpingindividualswhohadpreviouslyreceivedresettlementcompensationfortheirland,but
continuedtostruggle.Today13of18oftheseindividualsaremakinggoodprogressinrestoring
their livelihoods, and the project continues to work towards solutions for the remaining
individuals.
In each case, the project developed an individualized approach to engage the farmers in the
process and provide them with the training and resources they need to ensure longterm
success. Villagers received new livestock and/or training in new farming practices. In Bendoh
Village,fourwereeligibleforthisreinforcementprogram.
Forafarmer,themostimportant
thingisland,butIdonthave
enoughlandandthatiswhythe
projectishelpingme.Whenmy
newcowgrowsstrong,itwillbe
abletoplowwiththeoldercowI
receivedwithmyfirst
compensation.ThenIwillrentit
tomakemoney.Iftheproject
forgotaboutme,Iwouldhave
neverreceivedthisreinforcement.
Buttheyhavent,andIwantto
saythankyouforthat.
GossegotoRahab,BendohVillage
Ibelievethattheprojectishelping
ourpeople.Withtheabilitytomake
moneybysellinglivestock,peoplecan
nowgotothehospitalwhentheyare
sick.Evenifonlyafewpeopleneed
reinforcement,ithelpstheentire
villageaseveryonenowhasaccessto
thisequipment.Noudjindloum
Salomon,Chief,BendohVillage
Oneofthecowsfrommyfirstcompensationdied,sotheprojecthasreturnedtoreinforceme
withsheepandtrainingonhowtokeepmysheephealthy.ThishasbeenveryusefulasIhave
treatedthesheepsuccessfullyfivetimesinthelastfivemonths.Ihopetobeabletoselloneor
moreofthesheeptobuyascholarship,medicineorevenanothercow.
LarlemMicheline,BendohVillage
51
SUPPLEMENTALCOMPENSATION:ANEWFLOURMILLGIVESWOMENMOREINCOMEANDTIME
AnewgrainmillhastransformedthelivesofMissimadjiVillagewomenintheOFDA.Insteadof
spendinghoursadayengagedinbackbreakingworktoproduceflourbyhand,thewomenare
nowabletofocusonotherobligationsandtendtotheirchildren.Thevillagereceivedthenew
grain mill as part of the projects supplemental community compensation, which offsets less
tangible landuse impacts from production activities. The new mill will also generate income
that will be used to support teacher salaries at the villages projectbuilt school which was
deliveredthroughthesameprogramin2006.
During the selection process, the project met with villagers of all ages to discuss their
compensation options. After several consultations, the groups decidedon the mill. When the
building was complete and the equipment installed, the project trained the community
managementcommitteetooperateandmanagethebusiness.
Thechoiceforuswasvery
easyinthiscase,becausewe
alreadyhadaschooland
traditionalwaterwell.Thiswill
makeiteasierforourwomen
topreparetheirgrainandgive
themmoretimetodoother
things.Theschoolandthemill
areconnectedbecausethe
schoolhelpsbringeducation
toourchildren,andtheflour
millhelpspayfortheteachers
fortheschool.Ngaraissem
Prosper,Chief,Missimadji
Village(notpictured)
Everyonehereishappyaboutthemill.Before,itcouldtakeupto
twodaysforustogotoDobaorKomtoprocessourgrain.And
usingtraditionalmethods,itmighttakethreehourstoprepare
enoughgrainforonemeal.Withthemill,wenowhavemore
timetoclean,careforourchildrenandvisitrelatives.Training
sessionshavebeenveryhelpfulforustooperateandmanage
themillanditsproceedsresponsibly.Itsgoodtoknowthatthe
projectisgoingtocontinuetomonitorourprogresstomakesure
thatweareapplyingwhatwevelearnedproperly.Koutou
Martine,President,MissimadjiMillManagementCommittee
52
SUPPLEMENTALCOMPENSATION:NDOHEURIVILLAGEBREAKSGROUNDONANEWCLASSROOM
ThevillageofNdoheurirecentlybrokegroundontheconstructionofanewclassroomprovided
through the projects supplemental compensation program. In time for the new school year,
thebuildingwillprovideayearround,permanentclassroomawelcomechangefromthatch
andnaturalwoodclassroomsthatwereoftendamagedanddestroyedduringtherainyseason,
andinterruptedstudieswithprolongedcancellations.
Today,wearediggingholestoplaceafoundation.Thenwewillpourconcreteheretomakea
strongfoundation.Iliveinanearbyvillage,andsomeofourchildrencometoschoolhereevery
year. So I know our children will appreciate going to a school like this. This work is difficult
becauseofthefirmsoilinthearea.Butitisworthitbecausewehopewecanhavethisschool
foralongtime.Sowedighardtomakesurewereachtherightlevelforastrongfoundation.
MasdingamChristian,constructionworker
Wealwaysthinkfirstaboutaschoolbecauseschools
provideeducationandhelpopenminds.Wechosethe
classroom,soitisnotsohardtorebuildtheoldthatch
schoolseveryyear.Withthemillwereceivedforourfirst
compensationandthisschool,wecansaythatthe
compensationprocesshasbeengoodforus,especially
becausewehavebeenabletochooseourprojects.Wehave
agoodrelationshipwiththeprojecthere,andwewantto
continuetobuildonit.NdoubaDaniel,Chief,Ndoheuri
Village
53
PROJECTDONATEDROADCONNECTSVILLAGES
Mekapti and other nearby villages in the OFDA now have a permanent and durable road to
facilitatecommerceandtravel.Theroad,whichwasoriginallybuiltbytheprojectforitsown
use, was no longer needed for production activities. In keeping with standard practice, land
takenbytheprojectthatisnolongerbeingusedmustbereturnedtoitsoriginalstate.Inthis
case it was mostly undeveloped farmland. However, during a series of village consultations,
EMP representatives learned that the people in the local communities preferred to keep the
roadbecauseithadimprovedyearroundaccesstoothervillagesandBbdja,aregionalhub
fortheircommerceandmedicalneeds.
Withtheoldpath,wewereforcedtotravelbyfoot,becauseevenif
you had a bicycle, it was so sandy that you would have to walk for
someofthetime,andduringtherainyseasonyoumightevenhave
tocarryyourbicycleacrossthemud.Nowwhensomeoneissick,they
can easily get to the hospital, and we can use bicycles, motorcycles
andevenoxcartstogetourgoodstothemarkets.Whenitusedto
takeussixhourstoreachBbdja,itnowcantakeonly1hour.
MbaidjBenoudji,MekaptiVillageelder
Essocametousandaskeduswhatwethoughtaboutthereclamation
oftheroad,andwetoldthemthatwepreferredtheroadandweasked
themtokeepit.Wefeelthattheprojecthasrespectedouropinionhere.
RenBenadji,Chief,MekaptiVillage
54
AREVISEDLANDMANAGEMENTPLANLEADSTOMAJORIMPROVEMENTS
ArevisedlandmanagementplanandrestructuredEMPDepartmentinChadfacilitatedseveral
keyprojectaccomplishmentsin2012:
1. Landreturn
Theprojectsfootprintbyyearend2012wasitslowestinyears,theresultofaheightened
focusonquicklyreturningunusedland.Over540hectareswereidentifiedandreturnedto
OFDAresidentsin2012morethandoubletheoriginaltarget.
Thelandwasreturnedwhenitwasdetermineditwouldnotbeneededforconstructionor
access to additional infrastructure such as wellpads and flowlines. The project has set its
targetforreturningunusedlandto250hectaresfor2013.
2. GrievanceManagement
The number of outstanding grievances related to land compensation and return was
reducedby80%in2012.Animprovedlandtrackingsystemprovidesrealtimedatabaseand
mappingoflandparcels,allowingtheEMPteamtoquicklytrack,analyzeandresolvecases.
3. RevisedProcedures
After a comprehensive selfassessment, the EMP Department revised the document that
guideslandmanagementactivitiesintheOFDA.ToreflectchangingdynamicsintheOFDA,
morethan30majorchangeswereimplemented.Keyhighlightsinclude:
Clarificationofrolestosimplifyworkflowandallowfasterdecisionmaking.
ChangesincompensationandtrainingprogramstobetterserveOFDAvillagers.
Improved reporting practices which better incorporate feedback from the World Bank
andNGOs.
55
LANDRECLAMATION&RETURN:DECREASINGTHETOTALLANDUSEFOOTPRINT
Usinganarrayoflandreclamationtechniques,theprojecthasdecreaseditstotallandusein
theOilfieldDevelopmentAreaby411hectaresitslowestlevelinsevenyears,sincetheLand
Use Management Action Plan began. Although the continuing program of drilling to fully
developChadsoilresourcehasrequiredacquisitionofadditionallandineachofthoseyears,
theprojecthasworkedtoreclaimandreturnunneededlandtomorethanoffsetthenewland
requirements.
PermanentFacilityLand
As the graph above shows, the total project land footprint in the six oilfields of the Oilfield
Development Area has been reduced to 2238 hectares. The projects land reclamation and
return initiatives have outpaced the land requirements of the extra drilling by returning over
1983hectaresofprojectuselandtofarmerssincethelandreclamationprogrambegan.
56
CONTEXT:BACKGROUNDONLANDUSE&COMPENSATION
HistoryofEMPCompensationPrograms
All land users and villages have been compensated according to the Environmental
ManagementPlanthatwasapprovedpriortoprojectconstruction.
Since construction began in 2000, the project has compensated nearly 13,816 individual land
usersformorethan7261hectaresoflandin436villagesalongtheentirelengthoftheproject
fromtheoilfieldsinKom,Chad,totheterminusoftheexportpipelineatKribi,Cameroon.
In the Oilfield Development Area, individual land user compensation has been paid for more
than4222hectaresoflandinvolvingjustover7038individuals.Theprojecthasthusutilizedat
one time or another about 4.2% of the 100,000 hectares of land in the Oilfield Development
Area.Whenalltemporaryconstructionuselandhasbeenreturned,thepercentageofusewill
bejustover1.5%ofthe100,000hectares.
TheprojectscompliancewiththeEMPcompensationrequirementshasbeendocumentedin
theseProjectUpdateReportsandbytheWorldBanksExternalComplianceMonitoringgroup
andInternationalAdvisoryGroup.(Forstatisticsonthelatestcompensationforlanduse,see
the section on Compensation.) A set of principles set out in the EMP have guided the
compensationeffort,including:
Atransparentcompensationproceduresothatallvillageresidentscanseethatnoother
residentisgaininganadvantageoverothers.
Sensitivitytoculturalpracticesandlocallegalrequirements.Mostlandiscontrolledby
the village and allocated by the local chief. In Chad and Cameroon, nearly all land is
legallyownedbythestate.Sofarmers,ratherthanowninglandasiscommonlythecase
in Europe or North America, are entitled only to use the land for crops. The project
therefore does not buy land but compensates the farmer for labor and lost crop
opportunities,asprovidedintheEMP.
Therecordingofallcompensationtransactions.Eachpaymentisarchivedwithaphoto
ofthetransactionandtherecipientsthumbprint.
Avoiding or minimizing resettlement of households through project redesign and by

offering two resettlement alternatives: improved agriculture training and offfarm
employmenttraining.
57
HistoryoftheLandUseMitigationActionPlan
As the three original oilfields were being developed, and results began coming in from the
completed wells, it became clear that more wells would be necessary to develop the Doba
regionoil.Thisadditionaldrillingandtheinfrastructureneededtoproducetheoilandtosupply
electricitytothewells,wasconsumingmorelandthanoriginallyanticipated.
58
The projects efforts to address this land use situation began in mid2005, when it
declared a Level II Noncompliance Situation regarding the pace of reclamation and
returntocommunitiesoftemporaryuselandasspecifiedintheEMP.
Inearly2006,theprojectfreedthenecessaryconstructionresourcestobeginclearing
the land reclamation backlog so that the land could be returned to villages for
agriculturaluse.
InJune,2006,theauthorsoftheChadResettlementandCompensationPlanEvaluation
Study,Drs.RobertBarclayandGeorgeKoppert,collectedfielddataforanindependent
study jointly commissioned by the project and the World Banks International Finance
Corporation.
Bytheendof2006,basedonthestudy,theprojecthaddevelopedaninitialmitigation
actionplanandbeganimplementingit.
The final Land Use Mitigation Action Plan, adopted in April 2007, enhanced the initial
planthroughcollaborationwiththeEnvironmentandSocialDevelopmentDepartment
of the International Finance Corporation. For the full text of the finalized Action Plan
andassociateddocuments,seetheprojectwebsiteatwww.essochad.com.
Byearly2008,ateamofexpertsassignedtoimplementtheLandUseMitigationAction
Planhadcompletedallofthefirstyearworkcommitmentsoutlinedintheplan.
By the end of 2010, all work had been completed in the nine work categories in the
original plan, and the components of the Land Use Mitigation Action Plan were being
integratedintotheprojectsdaytodaylandacquisitionprocesses.
In2011,theprojectlaunchedanewphaseofimprovementforitslandusemitigation
workintheOilfieldDevelopmentArea,creatingenhancedlanduseimpactassessment
tools to respond more quickly to the constantly evolving circumstances of affected
individualsandvillages.
2012sawrevisionsoftheprojectslandmanagementplanandtherestructuringofthe
EMPDepartmentinChad.Thesechangesresultedinanincreaseintherateofreturnof
unusedlandandamajorreductioninthenumberofoutstandinggrievancesrelatedto
landcompensationandreturn.
LocalEmployment
Atyearend,over6,300ChadianandCamerooniannationalswereemployedbyEEPCI,COTCO,
TOTCOandtheircontractorsrepresentingalmost90%ofthetotalprojectworkforce.Almost
80%ofthoseChadiansandCamerooniansworkingfortheprojectareemployedinsemiskilled,
skilled,supervisoryorexecutivejobs.InDecember,theprojectreachedamajormilestonewith
its ongoing efforts towards nationalization, with the entire field export system in Cameroon
nowbeingoperatedbyacompletelyCameroonianworkforce.
THEONSHOREEXPORTSYSTEMINCAMEROON:NOW100%OPERATEDBYNATIONALWORKERS
TheprojectsonshorepipelinetransportationsysteminCameroonisnowoperatedentirelyby
Cameroonians,amajormilestoneachievedbyCOTCOinDecember2012.Thesystemincludes
two pumping stations to transport crude the nearly 1,000 kilometer route from Cameroons
borderwithChadtoapressurereducingstationandatthecoastalcityofKribi.
TheefforttonationalizetheprojectsworkforceinChadandCameroonwasinitiatedbeforeoil
begantoflow,andhasbeenacoreelementoftheprojectslongtermstrategy.Thesuccessof
the nationalization program is significant because many positions are highlyskilled or
supervisoryandhavesomeofthehighestwageclassifications.Theprogramincludesintensive
classroom training, post training mentoring onthejob and international assignments to
broadenexperience.
59
LocalEmployment
Maintenance Area Superintendents, Jethro Kwetcheu and Jules Wack Mballa, are the most
recentCameroonianstoreplaceexpatsalongtheexportsystem.Responsibleforalloperations
atthetwopumpingstationsandalonghundredsofkilometersofpipelines,theyhavebecome
mentorsforthosefollowingintheirfootsteps.
Kwetcheus deep operational experience on the project helps him in his current role as
SuperintendentofMaintenanceArea2(seeprojectareamaponpage9).Hewasfirsthiredby
COTCO twelve years ago as a pump station control room operator, two years before oil first
flowedthroughthepipeline.
COTCOspentalotoftimefocusingonmentoringandtrainingall
ofusIvetraveledaroundtheworldfortraining.Theseconstant
effortsattraininghelpednationalizationproceedonschedule.
AndCOTCOwillcontinuetodevelopmorepeople,asthecompany
adaptstonewchallengesadditionalproducersshippingtheir
crudethroughthepipeline,staffretirementsandongoing
nationalizationeffortsontheFloating,StorageandOffloading
Vessel(FSO),andinourheadquartersinDouala.
Thewayweconductbusinesstreatingpeoplefairlyandleading
insafety,training,communityinvestment,operationalexcellence
andethicalintegrityimpactsotherbusinessesinthiscountry.
Thisisimportantbecauseforme,ourreputationrunsthis
business,andeverybodyhererisestoourreputation.Jethro
Kwetcheu,MaintenanceArea2Superintendent
Wack Mballa was recently promoted to manage all operations in Maintenance Area 3, which
includes a pump station and several hundred kilometers of pipeline north and south of the
townofBelabo.AcivilengineerwithaMastersdegreeinBusinessAdministration,hehasheld
anumberofkeysafety,productionoperationbestpractices,planningandgovernmentaffairs
relatedroleswithinCOTCO.
Fromanexternalperspective,thenationalizationobjectivemay
haveseemedveryrapid,butitwasverystructuredandresponsible,
sowewereabletomovequicklywithoutanyimpactonour
businessperformance.Thisisbecausefromtheverybeginning,all
ofthecompanysplanstookintoaccountthatexpatswould
eventuallybereplaced.
IbelievethecountryhasbenefittedimmenselyfromCOTCOs
presencehereevenbeyondthefinancials.Wearemarketleaders
inmanyoperationalareasandothercompaniesareevenstarting
tolearnfromCOTCO,astheyrecognizethatwecanoffermuch
safetyandoperationalexpertise.Itisintangibleslikethesethat
mayevenbeassignificantasourcontributionstoCameroonstax
base.JulesWackMballa,MaintenanceArea3Superintendent
60
LocalEmployment
LOCALEMPLOYMENTSTATISTICS
WAGES
The projects contributions to its host countries economies in 2012 included wages paid to
ChadiansandCamerooniansofalmost71billionFCFA(over$139million).
Wage payments to Chadian workers for the third and fourth quarters of 2012 totaled
justoveranestimated30billionFCFA(almost$60million).
Wage payments to Cameroonian workers for the third quarter of 2012 totaled an
estimated1.9billionFCFA($3.7million).Forthefourthquarter,wageswereestimated
at2.3billionFCFA($4.6million).
TotalProjectWorkforceQuarterbyQuarter1(inFullTimeEquivalents2)
Q12012 Q22012 Q32012 Q42012

Chad
5,254
5,065
5,108
5,152
Expatriates
810
781
698
780
TotalChad
6,064
5,846
5,806
5,932
Cameroon
Nationals
1,090
1,144
1,218
1,150
69
73
49
47
TotalCameroon
1,160
1,218
1,267
1,197
ProjectTotal
7,224
7,064
7,073
7,130
Nationals
Expatriates
1.
Estimatesofwagesandprojectworkforcehavebeenbasedonthelatestavailableinformationandmaybeadjustedinfuturereports.
2.
AlsocalledFTEs.FormoreonreportingemploymentstatisticsusingFTEs,seethecontextsectionattheendofthischapter.
NATIONALWORKERSEMPLOYMENTSKILLLEVELS
Almost 80% of the Chadians and Cameroonians working

for the project held supervisory, skilled or semiskilled
positions at the end of 2012. A large percentage of
supervisory positions are now held by Chadians and
Cameroonians. Skilled jobs include such positions as
control room operators, technicians for oilfields,
construction, machinery, electrical and instrumentation,
EMPmonitorsandwelders.Examplesofsemiskilledjobs
include food service assistants, security guards and
welderhelpers.
61
LocalEmployment
CONTEXT:REPORTINGLOCALEMPLOYMENT
TheProjectUpdateReportnowreportsstatisticsonlocalemploymentonthebasisofFullTime
Equivalents or FTEs. Reporting by FTEs makes it possible to account for the wide diversity of
workshiftsandrotationsoftheprojectsworkforce,aswellastheseasonalvariationsinthe
typesofjobsavailablewiththeproject.
Many of the projects workers are on rotator schedules, working in tandem with another
backtobackworker.Rotatorstypicallywork28daysonand28daysofforananalogous
pattern,butwhenondutytheyworksevendaysaweek,12hoursperday.
Other workers have daytoday jobs where they work Monday through Friday shifts for
shorterdaysbutareondutyformostoftheyearwithnorotationbreaks.
Another category of workers, often hired from villages near project facilities, have
temporary contracts and work only a few weeks at a time in order to complete special
projectssuchasmaintenanceofthepipelinerightofway.
Converting all these employee work patterns into standard Full Time Equivalents based on
actual hours work yields a consistent and more accurate picture of the projects local
employment.
62
10
LocalBusinessDevelopment
In2012,theprojectssupportofChadandCameroonseconomiesthroughpurchasesofgoods
andservicesfromlocalsupplierstotaled88billionFCFA($175million).
Inaddition,COTCOhasbegunconstructiononatemporarycampforworkerswhowillmodify
twosectionsofthepipelineinsupportofCameroonsLomPangarHydropowerProjectwhich
willfacilitatethecountrysbusinessgrowthandoveralldevelopmentbysignificantlyincreasing
itspowergenerationcapacity.
LOCALBUSINESSSPENDINGSTATISTICS
Since the project began, its purchases of goods and services from local suppliers has totaled
over1.5trillionFCFA($3billion),partofacontinuedcommitmenttosupportlocalbusinesses
andfollowtheguidelinessetforthbytheEMP.
In Chad, spending over the last four quarters totaled 60 billion FCFA ($118 million),
bringingprojectspendingtodateinChadtoanestimatedtotalofover985billionFCFA
(over$1.9billion).
In Cameroon, spending over the last four quarters totaled over 28 billion FCFA ($57
million), bringing project spending to date in Cameroon to an estimated total of 528
billionFCFA(over$1billion).
ProjectSpendingwithLocalBusinesses1(InBillionsofFCFA)
Q12012 Q22012 Q32012 Q42012
12
Month
Total
Project
toDate
Chad
18.3
18.0
11.8
11.9
60.0
985.1
Cameroon
6.0
5.3
7.5
9.9
28.7
541.2
ProjectTotal
24.3
23.3
19.3
21.8
88.7
1,526.3
1.
Preparedusingthelatestavailabledata.Dataforpreviousquartershasbeenupdatedtoincludelatereporteddata.
63
LOMPANGAR:SUPPORTINGCAMEROONSEFFORTSTOGROWITSINDUSTRIALCAPACITY
Lastyear,constructionbeganonatemporarycampforover200workerswhowillmodifytwo
13 kilometer sections of the projects oil pipeline located in the Deng Deng forest, to
accommodate one of Cameroons largest development efforts to date: the Lom Pangar
HydropowerProject.Inaddition,theprojecthastransportedandstagedover1,800sectionsof
pipe which will replace the length of pipeline to be modified. The construction camp will be
built,operatedanddismantledandthelandrestoredallwithintwoyears.
The hydropower project, a strategic priority for the country, involves building a hydroelectric
damattheconfluenceoftheLomandPangarriversincentralCameroon.Thedamwillcreatea
590 square kilometer reservoir in an area traversed by the oil pipeline. It is the first step to
increase Cameroons electric generation capacity fivetotenfold over the next 20 years to
support the countrys burgeoning industrial growth. Below, workers stack the hundreds of
sectionsofpipewhichwillsoonbeusedtomodifythepipeline.
Iveneverworkedonaprojectwithsuchhighenvironmentalandsafety
standards. Each individual who works on this site must sign an
environmentalcommitmentpledge.ThisisimportantbecauseDengDeng
isanamazingplace,withbaboons,gorillasandotherrareprimates,and
the Government of Cameroon and COTCO have put in place these
standards to protect this rare and valuable area. It will be interesting to
come back several years after the camp is gone to see just how little
lasting impact there was. Victor Fosah, EMP Environmental
CoordinatorContractor
64
TENYEARSLATER:ALOCALARCHEOLOGYBUSINESSLAUNCHEDAFTERCONSTRUCTION
Archeology services company, Vabioce Consulting Services (VCS), was started by some of the
Cameroonian archeologists who examined the 1,070 kilometer long, two meter deep trench
createdduringpipelineconstruction.TheirstoryisoneofmanythatcanbetoldofChadianand
Cameroonianentrepreneurswhohavetakenadvantageofopportunitiescreatedbytheproject
tostarttheirownbusinesses.Oneofthefirmspartners,Dr.BienvenuGouemGouem,(center)
wasalsooneofthreeCameroonianarcheologicalstudentstoreceiveamultiyearscholarship
fromCOTCOthatallowedhimtoobtainhisPhDattheUniversityofBrusselsin2012.Formore
information about thescholarship program, please see the section on the EMPMonitoring&
ManagementProgram.
Below,right,ancientpotteryfragments,whichtheteamdiscoveredatthesiteoftheprojects
Lom Pangar construction camp, await excavation. The team started their firm after realizing
thattheirworkontheproject,oneofthelongestarcheologicaltransectsinhistory,helpedseta
newstandardforarcheologicalresponsibilityonAfricaninfrastructureprojects.Tenyearslater,
theyareinvolvedinindustrialprojectsinseveralcountriesandarecurrentlyworkingwiththe
governmentofCameroonontheLomPangarHydropowerProject.
Itfeelsgoodtocomeback
andworkforCOTCOafterall
theworkwedidwiththe
companyduringconstruction.
Itseasytoworkwiththem
becauseweknowtheir
regulationsandrequirements
verywell.Dr.Bienvenu
GouemGouem,Archeologist
65
11
Health
The projects healthrelated priorities in 2012 included both employee and communitybased
initiatives. While villages along the pipeline route in Chad benefitted from an AIDS education
campaign, the project also worked to empower women in the Oilfield Development Area
(OFDA)toteachtheircommunitieshowtopreventandtreatmalaria.Meanwhile,theprojects
Medicine and Occupational Health (MOH) Department conducted diabetes and other
screeningsforstaff,tohelpaddressemerginghealthissuesbroughtintoexistencebyimproving
socioeconomicconditionsinChad.
LEVERAGINGWOMENSNETWORKSTOFIGHTMALARIA
Supported by funding from the ExxonMobil Foundation, three international NGOs have
collaboratedwiththeprojecttoworkwith womenscooperativeassociationsincommunities
neartheOilfieldDevelopmentAreainanefforttohelpfightmalaria.MalariaNoMore,Africare
and JHpiego have implemented a pilot project to train dozens of traditional cooperative
womens associations about malaria prevention and control. The womens associations are a
powerful vehicle for communications in the OFDA communities, since they can rapidly
disseminate critical public information. These groups are now leading doortodoor bed net
hangingcampaigns,issuingregularremindersabouttheproperuseofbednetsandproviding
trainingonhowtorecognizemalariasymptomsanduseantimalariadrugs.
Becausemostofthe
victimsofmalariaare
womenandchildren,using
womentospreadthe
messageisveryeffectiveas
theycanspeaksisterto
sister,butalso
communicatetotheentire
community.Itsnottoo
earlytosaythatthisproject
isalreadyasuccess
becauseIveseenand
heardmanypersonalstoriesfrompeoplewhoseviewsonmalariahavechanged.Forexample,evennow,
manypeoplethinkthatwitchcraftisthecauseofillnessandtrytotreatitusingtraditionalmethods,
allowingmanytoneedlesslyexpire.Butalready,somewhopreviouslythoughtthiswillgostraighttothe
hospitalwhentheyseethesignsofmalaria.LelimboyeRachel,WomensMonitoringCoordinator,
MalariaNoMore
67
Health
RAISINGAIDSAWARENESSALONGTHEPIPELINEROUTEINCHAD
In 2012, TOTCO, the projects pipeline operator in Chad, organized an AIDS awareness
campaign targeted to the communities along the pipeline from the OFDA to the Chad
Cameroonborder.InthefivebiggestvillagesKom,Bessab,Kagpal,Mbaiboukou,andBro
workshops were attended by 500 to 1000 teachers, chiefs, administrative officials, students,
parentsandothercommunitymembers.
TOTCOengagedagovernmentmedicalspecialisttohelpdesignthecurriculumandteachthe
communities how to prevent and cope with AIDS. Hand drawings specially created by one of
TOTCOsemployeesbroughtthemessagestolifefortheattendees.
ThechangingeconomicsoftheOFDAhasresultedinaninflux
ofpeoplelookingforbusinessandemploymentopportunities.
Ofcourse,thishelpsdiseaseslikeAIDSspreadandasaresult
wethoughtitwasimportanttoconductthiscampaign.The
villagersreallyappreciatedthemessages,becauseforsomeof
them,itwasthefirstvisitanybodyhadmadetotheirvillagesto
discussAIDS.Thismakessensebecausewhileawareness
campaignshappeninbigcitiesfromtimetotime,itisrarefor
peopletocomeintothemoreremotevillagestoeducatethem.
NgarAsdjim,TOTCODeputyGeneralManager
68
Health
PROJECTADDRESSESEMERGINGHEALTHISSUESINCHAD
Aspartofitsmissiontokeepthousandsofemployeesinformedaboutpublichealthissues,the
projects Medicine and Occupational Health Department conducted an awareness and
screening session for diabetes, high blood pressure and hypertension at its company
headquarters in NDjamena. With almost 60% of employees participating, the screening time
was extended to accommodate everyone. While employees waited in line, medical staff
initiateddiscussionswithandansweredquestionsfromparticipants.
Hyperglycemia and high blood pressure were discovered in several employees who each
receivedadditionalexaminationsandhealthcounselingattheprojectshealthclinic.
Eventhoughinfectiousdiseasesarestillalargeproblem
inChad,weareseeingatransitiontowardschronic
diseaseslikediabetes,theresultofchanging
socioeconomicconditionswhichenableamoresedentary
lifestyle,particularlyinNDjamena.Inthepastpeople
usedtowalklongdistancesandridebicyclesinChadit
wouldberareforChadianstohavethreemealsevery
day.Whilethisistheresultofincreasedeconomic
prosperity,therearedownsidestothislifestyle.
InChad,evenifyouseeadoctoritisdifficultforthemto
haveenoughtimetoexplainthingsfullytopatients,so
ouremployeeswerehappytogetthisinformationas
therewasmuchthattheydidntknow.Wehavethe
capabilitytodiagnoseandtreatdisease,butitismore
importanttopreventchronicdiseaseslikethisfrom
happeninginthefirstplace.Soratherthanwaituntilwe
seecomplicationsfromthesehealthconditionsinour
staff,wedecidedtobeproactiveandraiseawareness.
Dr.TogYeumNagorngar,MOHManager
PositivefeedbackfromemployeeshaspromptedMOHtoplantoconductsimilarsessionsona
quarterly basis. The project continues to implement other elements of ExxonMobils global
Culture of Health medical initiative by encouraging employees to increase physical activity,
practicebetternutritionalbehaviorandgetroutinecheckups
WorldHIV/AIDSDay
As part of its annual participation in World AIDS Day, on December 1st, TOTCO held an HIV
educationpresentationforallofitsemployees,whichincludedremarksbythepresidentofthe
ChadianNationalCouncilonAIDSandtestimoniesfromindividualslivingwithHIV.Theproject
publishedafollowuparticleabouttheeventinitsemployeenewsletter.
69
Health
Casesper200kWorkhours
MALARIAINFECTIONRATE(NONIMMUNEPERSONNEL)
Theprojectachievedamalariainfectionratefornonimmuneprojectworkersof1.13casesper
200,000 work hours in 2012. Although a heavy rainy season led to a small increase in non
immunemalariacases,theoverallratehasbeendramaticallyreducedoverrecentyearsowing
totheprojectsintensivemalariapreventioninitiative.
CONSULTATIONSATPROJECTCLINICS
Projecthealthclinicsprovidedover20,000freehealthcareconsultationstoworkersin2012at
project facility clinics, a valued job benefit in Chad and Cameroon where health care can be
difficult to obtain, especially in rural areas. The bulk of this care involved illnesses or other
healthconditionsunrelatedtotheworkplace.
ConsultationsatProjectClinics
Q12012
Q22012
Q32012
Q42012
Chad
4,658
3,526
2,376
5,193
12Month
Total
15,753
Cameroon
668
725
1,638
1,478
4,509
ProjectTotal
5,326
4,251
4,014
6,671
20,262
ProjectWorkerHealthData
SSS2Events
STDs1
(excludingMalaria&STDs)
Hospitalizations/
Observations3
Medevacs
Q32012
Q42012
Q32012
Q42012
Q32012
Q42012
Q32012
Q42012
Chad
48
44
41
79
10
Cameroon
Project
Total
48
45
41
79
15
1. STDs: Sexually Transmitted Diseases. 2. SSS: Sentinel Surveillance System, an epidemiological early warning system. Some examples of
diseasestrackedbytheSSSincludetuberculosis,dustexposure,meningitis,skinrashesandflu.TheSSSfocusesonadditionaldiseasesoutside
the two that have been priority targeted malaria and sexually transmitted diseases. Trends in disease rates can help alert project health
expertstoahealthproblembeforeitreachesepidemiclevel.3.ChadhospitalizationdataisfromKom5andKomBaseclinicsonly.NDjamena
clinicdatanotincluded.
70
12
CommunityInvestment
AnewbuildingtoprovideemergencyhospitalservicesinKribi,aprogramtoinstallwaterwells
in communities across Cameroon, and the launch of a second phase of a womens
empowermentinitiativearoundtheOilfieldDevelopmentArea(OFDA)werekeyhighlightsfrom
theprojectscommunitydevelopmentinvestmentsin2012.
AFRICAREANDTHEEXXONMOBILFOUNDATION:WOMENSEMPOWERMENTPHASEII
Positiveresultsattheendofathreeyear,$1.5millionefforttobuildtheskillsandincomesof
58 traditional womens cooperative associations throughout the oil producing region, have
promptedAfricareandtheExxonMobilFoundationtoenterasecondPhaseoftheInitiativefor
EconomicEmpowermentofWomenEntrepreneurs.TheFoundationhascommittedtomaintain
annualfundingat$500,000eachyeartheprogrammeetsitsgoals.Inadditiontothetraining,
equipmentandmicrofinanceactivitiesinitiatedinPhaseI,threenewactivitieswillbeadded:
1. Creatingbroaderunionsofassociationstofurtherempowermembers
2. Acquiringanddevelopinglandwhereassociationscangathertodobusiness
3. ProvidingfundingformanualpumpsforfemalefarmersthroughouttheOFDA
Itisreallyjoyfultosee
thesewomencontinueto
growandknowthatour
effortsarehelpingthem.
Manyofthemhave
comefromlittleor
nothingatall,and
helpingthesewomen
succeedforthemselves
encouragesusto
continueourworkwith
them.Thepartnershipof
EEPCIandthe
ExxonMobilFoundation
hasmadeeverythingweveseenherepossible.Thewomenrealizethisandsingtheirpraisesas
well.RobertineDenodji,AfricareDobaProjectCoordinator;2ndfromleft,withAfricares
Dobateam
71
CommunityInvestment
Theinitiativewasoriginallydevelopedafterastudyonpovertyandgenderequityissuesinthe
oilfield region found that women didnt have the same opportunities and resources as men,
particularlyinthefollowingareas:
Limitedaccesstocreditandopportunitiesforgeneratingincome
Lackofexposureandtraininginnewerfarmingandagriculturalmethods,whichoften
limithouseholdstosubsistencefarming
Restrictionsonowningland,livestockandotherassets
Restrictionsonparticipatingindecisionsbylocalmarketcommittees
Lowliteracyratesandlackofbusinessmanagementskills
Cooperative associations are the traditional way village women have joined together in small
business enterprises to earn money and help each other. Most villages have at least one
womensassociationcooperative.TheEmpowermentInitiativefocusedonthesecooperatives
by providing them with business training and counseling, and microcredit funding for raw
materials to help them build inventory and expand their lines of business. Below, customers
lineuptohavetheirgrainsprocessedbyawomensassociationinthetownofBitanda.
WereceivedthegrainmachinelastyearfromAfricare,andwith
theproceedsfromit,weboughtthisriceprocessorthisyear.
BeforeAfricare,wehadourownassociation,butwedidnthave
enoughtomakeendsmeet.Africarecametouswithfinancing,
technicaladviceandtraining.Now,our17membershaveabetter
standardoflivingthaneverbefore.Withtheprofits,wedo
severalthingslikeeducatingourchildren,assistingother
associationswhennecessary,andhelpingthewholevillageaswe
can.So,forallofus,thesupportofAfricarehasbeencrucial.
LellarElisabeth,President,GroupementDjarakohdeBitanda
72
CommunityInvestment
KICKSTART:ANIRRIGATIONSOLUTIONUSINGHANDANDFOOTPOWEREDPUMPS
Kickstart,anewprogramfundedbya$100,000grantfromtheExxonMobilFoundation,isbeing
implemented by Africare as part of its Womens Empowerment Initiative. The program is
providingover500handandfootpoweredwaterpumpstofemalefarmersintheOFDA.These
simple pumps represent a sustainable solution to traditional methods of delivering water to
crops and an alternative to expensive gasolinepowered pumps that many farmers cannot
affordtooperate.Thepumpsareeasilyportableandcanbeoperatedfromnearbysourcesof
watersuchasrivers,streamsandmanmadewaterwells.
Wegrowlettuce,eggplants,carrotsandmanyothervegetables.
Thesepumpsmakegettingwatermucheasierandlesstiringthan
thetraditionalmethodsweusedtouse.Whenweusedmotorized
pumps, we used to have to pay for and bring fuel to run them.
Thisseason,weplantosellsomeoftheproducetoreinvestinto
our farming activities, and we will keep some for our members
families.Ourhopeisthatwecanultimatelyearnenoughrevenue
from this garden to pay to educate all of our children, and we
havetothankAfricareforgivingusthechanceforthis.
AchraNdoudoubeu,MaraicherAlSabourdeDoba
73
CommunityInvestment
STRENGTHENINGWOMENSASSOCIATIONSTHROUGHTHECREATIONOFBUSINESSNETWORKS
BuildingonthesuccessoftheoriginalWomensEmpowermentInitiative,Africare,withsupport
fromtheExxonMobilFoundation,hashelpedthe58participatingwomensassociationsinthe
OFDA form two broader business networks. These networks have designated locations for
commerce, farming, processing and manufacturing their goods. Supported by member dues,
the networks combine the power of the traditional associations into larger and stronger
advocacy organizations. They also assist individual members with financial aid, technical
supportandtraining.
Wehave24associations
representing450women.The
networkisimportanttohelpeveryone
worktogetherandbecomestronger.
Wehadthoughtaboutforminga
networkalongtimebeforeAfricare,
butitwastoodifficulttobeincontact
withandunderstandeachotherwell.
Manyofthewomeninthese
associationsarewidowsandthismay
betheironlysourceofincome.
RokouletNekiaBrigitte,President,
GroupmentMbailassemBbdja
(left)
Havinganetworklikethishelpsour600membersin34associationsbecomeevenstrongercollectively.
Weusethemoneywecollectinduestopayourstaffandreinvestintothebusiness.Beforewewerejust
in small groups, but between technical support, financing, monitoring and creating the networks, the
workofAfricarehasreallyhelpedus.AchtaNdoro,President,PlateFormeDnrabdeDoba(top
left,sellinggoodstoacustomer)
74
CommunityInvestment
ANEWEMERGENCYHEALTHCENTERFORKRIBISDISTRICTHOSPITAL
Kribis District Hospital, built by the French during the colonial era, has a new emergency
building,thankstodonationsfromtheprojectspipelineoperator,COTCO.Thecompany,which
had been making donations of medicine and supplies to the hospital for several years,
developed the idea of renovating an existing building to create an emergency wing, but
ultimatelydecidedthatanew,purposebuiltbuildingwouldbemoreeffective.Twoemergency
rooms, an administrative office, and a reception room will soon be available to provide life
savingservicestopatientsinneed.Inadditiontofundingconstructioncosts,COTCOdonated
beds,examtables,wheelchairs,chairs,desks,andmedicalsuppliestofullystockthewing.
AsKribicontinuestogrowfromtourismandnewindustrialprojects,theneedforadedicated
emergencyroomgrewaswell,sinceouroldfacilitywasnotsetuptohandleemergencies
effectively.Itsaveryrareandpositiveoccurrencetohavecorporatesupportlikethisin
Cameroon.Dr.Ondoa,KribiDistrictHospital(aboveleft)
75
CommunityInvestment
ANEWWATERWELLFORMBAMBOVILLAGE
SeveralyearsagothevillageofMbamboswaterwellmalfunctioned,requiring10minutesof
pumping to return a trickle of fresh water. With no resources to repair the well,the villages
500residentswereforcedtotravelasignificantdistancetogetwaterfromatraditionalwell
and a river in the forest. When villagers turned to COTCO for help, the project responded by
installinganewwellwhichnowprovideswaterforeveryonewithinatwokilometerradius.
The well was installed through a social responsibility program run by COTCOs Public &
GovernmentAffairsDepartment,whichconstructed20wellsaroundKribiandBlaboin2012.
Twentymorewellsareplannedfor2013acrossCameroon.Villagesareselectedonthebasisof
recommendationsmadebylocaladministrativeandtraditionalauthorities.
Theprogramincreasesaccesstodrinkingwater,akeydevelopmentobjectiveforCOTCO.Italso
includesacapacitybuildingcomponent,withactionsfocusedonwaterwellmaintenanceand
sustainability,hygiene,waterconservation,andbasicsanitationnearwells.
WevebeenincontactwithCOTCOforalongtimenowbecausethecompanyhascomeand
visitedourvillagedirectlyseveraltimes.Sowhenthechiefcamebackfromameetingwiththe
governmentandCOTCOandtoldusthatwehadbeenselectedforanewwaterwell,wewereall
veryhappyinthisvillage.WeareveryproudandwedontknowhowtothankCOTCOthisis
thefirstcompanythatweknowofthatistakingcareofthepopulation.NgohDieudonn,
AssistantChief,MbamboVillage
76
CommunityInvestment
GUINEBORHOSPITAL:PROJECTSHIPSTHREECONTAINERSOFMEDICALSUPPLIESFROMU.S.
Builtin2010bythenonprofitorganization,CuttingEdgeFoundation,GuineborHospitalrelies
ondonationsmanyofwhichcomefromtheUnitedStatesforcriticalmedicalsuppliesand
equipment.Toreducethefoundationsshippingcostsandsimplifythelogisticsoftransporting
large quantities of medical equipment and supplies from the United States, EEPCI made a
commitment to fund and facilitate the shipping of two containers of supplies each year
exclusivelyforthehospital.Todate,theprojecthasshippedthreecontainerstothehospital.
With1,000newpatientseach
month,thelineforpatientsin
needofthequalitymedical
careprovidedbyatGuinebor
Hospitalisalongone(left).
EEPCIhasalreadytransported
three40footcontainersof
surgicalandmedical
equipmentsuchasECGandX
raymachines,medicalfurniture
andwheelchairs.
Thecostofshippingisonething;thelogisticcapacitywasequallyimportant,andEEPCI
organizeditallrighttoourhospitalcompound.Shipping,customs,roadtransportthrough
CameroonandthecranetofinallyliftthemintoplacealldoneasagifttothepeopleofChad.
Allthesethingswillreallymakeadifferencetothewaythatweareabletodelivercare.Sowhy
notsay,Hallelujah,PraiseGod.Dr.MarkHotchkin,GuineborHospital
77
CommunityInvestment
SCHOOLCOMPETITION:COTCOAWARDSTOPHIGHSCHOOLSTUDENTSWITHSCHOOLSUPPLIES
COTCOawarded72ofthetopstudentsattheLyceClassiquedeBelabosecondaryschoolwith
prizes to reward them for their strong academic performances and encourage more of the
sameinthefuture.Theprizes,whichwereawardedduringalargeceremonytothetopthree
students in each of the schools 24 classes, included vouchers with which the students could
purchasetextbooksandotherschoolsuppliesintimefortheupcomingschoolyear.
AsfarasIknowthisis
thefirstandonlytime
thatIhaveseena
companydothisin
Cameroon.Bian
Salomon),Lyce
ClassiquedeBelabo
TheprizethatIgotfromCOTCOwasvery
helpfultobuysomeofmybooksforthisyear.
Itwasnicetoreceivetheawardduringthebig
ceremony,andIammotivatedtocomefirstin
myclassagain.Ienjoylearningthingslike
physicsandmathematicalfunctions,because
sinceIfoundoutwhattheydoatNASA,Iwant
tobeanaeronauticalengineerataplacelike
that.SoIwanttocontinuemystudiesabroad
andthenworkasanaeronauticalengineerat
atopengineeringinstitution.Tchelong
KwayebFranckCarl,Student,15,Grade
Terminal,PremiereCClass
78
CommunityInvestment
THEWOMENOFCOTCO:INSPIRINGYOUNGWOMENTOPROFESSIONALSUCCESS
Female employees from COTCO recently volunteered to deliver valuable health and career
advicetoyoungwomenwhoarebeginningtothinkaboutthenextstepsintheirlives.Allofthe
women who participated are members of the volunteer organization formed and funded by
some of COTCOs female employees, The Association des Femmes de COTCO (ASFEC). The
association focuses its efforts on helping underprivileged women and children through
donations,education,mentoringandscholarshipinitiativesthroughouttheyear.
WhentheassociationmetwiththeentirecoedstudentbodyatDoualasrenownedsecondary
school,LyceBilinguedeNewBell,akeyobjectivewasforthefemalestudentstohearthese
important messages coming from women. After discussing risks and prevention strategies
relatedtoHIV/AIDS,thewomenshiftedtheirfocustocareersforyoungwomen.Theirgoalwas
toshowbyexampleandanecdotethatitispossibleforwomentoholdleadershippositionsat
major companies like COTCO, and also to provide information about developing career goals
andmappingpotentialpathwaysforyoungwomentosucceed.
OurfirstfocuswiththisvisitistohelpstudentspreventAIDS,
becauseitissuchabigprobleminCameroon.Additionally,we
reallywantedstudentstoseesuccessfulrolemodelsandhelpthem
understandpathwaystosuccess.Andweuseourselvesasexamples
thattheycanlearnfromwhatschoolswewentto,whatdegrees
weearnedandanyotherchoicesthatcouldserveasuseful
examplesforthechildren.BrigitteMbongo,Aviation
Coordinator,Member,ASFEC
Seeingmultipleladiesfromonecompanyshowsitisnotoutofthe
ordinaryforwomentohelpruncompanies.So,wedlovetohave
encounterslikethismultiplied,becausethismessageissoimportant,
andourchildrenneedmoreinformationasearlyaspossiblesothey
canthinkabouthowtomakechoicestoachievetheirgoals.Eson
NdumbepseNonog(Madame)Victorine,Principal,LyceBilingue
deNewBell
InMayIwillgraduateandIhopetogetacareerinlogistics.There
seemtobealotofopportunitiesinthatfieldbecauseallcompanies
needlogisticspeople.Imtakingextraclassesnowtohelpmewiththe
nextsteptowardsacareerinlogistics.Itwasnicethatmanyofthe
ladiesinASFECwereformerstudentshere.Sotheyreallyshowedus
thatwecanfollowtheirpathandbesuccessfulfromthisschool.
MiyonTakafoMartine,student,20
79
13
HostCountryRevenue
Theprojecthasgeneratedover$10billioninrevenuesforChadsinceoilbegantoflowin2003,
much of which the country continues to invest in Chads economic, social and cultural
development sectors. 2012 marked another milestone for Chads petroleum industry as the
country completed its firstever direct sales of crude on the international market through a
royaltyinkindarrangementwiththeproject.
CHADSOILREVENUE:IMPROVINGFOODSAFETY
Major construction has just been completed on the new headquarters for Chads Center for
Food Quality Control, just one of the countrys latest investments of projectgenerated oil
revenue. With its sophisticated laboratory equipment to conduct biological and chemical
testingoffoodproducts,thecentersgoalsaretwofold:1)protectChadiansbymanagingthe
riskoffoodborneillnesses;and2)benefitChadfinanciallybyfacilitatingexportsandtrading,
therebydiversifyingChadsrevenuesources.
Thisistheverydefinitionoftheresponsibleapplicationofoil
revenueastheworkthatwedoherewillhelpprovidesafeand
healthyfoodforthebenefitofallChadians.Ourlaboratory
facilitieswillallowustobecomeaqualitycontrolhubfor
surroundingcountries,andwillhelpChadgenerateadditional
income.Withoutoilrevenue,therewouldbenoactivitylikethis
inChad.Dr.AbakarMahamatNousMallaye,Director
General,CentredeControledeQualitedeDenreesAlimentaires
(CECOQDA)
81
HostCountryRevenue
CHADSOILREVENUE:HELPINGCHADCOLLECT,PROTECTANDSHAREITSHISTORY
Visitors from around the world can now come to NDjamena to study Toumai, the fossilized
skulloftheoldestknownmemberofthehumanfamily,whichwasfoundinnorthernChadin
2001.DubbedHopeofLifeinthelocallanguage,thissevenmillionyearoldfossilisondisplay
atChadsNationalMuseuminNDjamena,completedin2010withthehelpofoilrevenue.The
museumhelpsfulfillChadsMinistryofCulturesmissiontocollect,restoreandconserveChads
artifactsandculturalheritageforfuturegenerations.
Our missionistobringChads
culturalhistorytothepeople.
Studentscanvisitusanytimeto
seeandlearn.Thismuseumisthe
onlysitelikeitinChad,andthe
onlyoneintheworldthatcontains
sevenmillionyearsofhistory.
NarayamNdissedibayeGeneral
Director,NationalMuseum
The National Museum is open to all visitors, free of charge, and features an impressive
collectionofcultural,historicandprehistoricobjects.Perhapsmostimportantly,Chadnowhas
a facility that can protect and proudly display Toumai, which experts agree will have a
significantimpactonthestudyofhumanorigins.
82
HostCountryRevenue
ChadsOilRevenuethrough2012(millionsofU.S.dollars1)
Q12012
Q22012
Q32012
Q42012
12Month
Total
Project
toDate
RoyaltiesonCrude
OilSales2
108
49
157
2,708
RoyaltiesinKind2
N/A
N/A
272
272
IncomeRelatedto
PipelineOwnership
69
CorporateIncome
Tax3
340
381
264
322
1,307
6,643
Fees,Permits,
Duties,Etc.4
18
12
15
15
60
500
ProjectTotal
466
442
279
337
1,524
10,231
1. Rounded to nearest whole number. 2. Historically, this reflects cash payment royalties paid by all Consortium members However, the
GovernmentofChadinformedEssooftheirwillingnesstotakeroyaltiesinkindonDecember22,2009.RoyaltiesincashceasedasofMay1,
2012andtheGovernmentofChadsfirstliftingtookplaceonJuly11,2012.Asaresult,effectiveMay1,2012GovernmentofChadrevenueisno
longerreflectedinRoyaltiesonCrudeOilSales.RoyaltiesinKindareestimatedonanannualbasis.3.Corporateincometaxamountincludes
paymentsmadebyConsortiummembersandTOTCO.4.ProjecttoDatehasbeenrestatedtoexcludeamountspreviouslyreportedforservices
providedbygovernmentrunentities,suchasutilities,hospitals,andtelecommunicationservices.
DobaBasinCrudeOilMarketPrice(bymonthinU.S.dollarsperbarrel)
AveragePrice:$84.43
Global oil prices in recent years have been higher than expected, significantly increasing
revenuetoChad.Althoughpriceshavebeenvolatileattimes,since2008thepriceperbarrel
hasaveragedover$80,morethandoublethepricewhenoilexportsfirststartedin2004.
83
HostCountryRevenue
CONTEXT:HOWCHADEARNSITSREVENUE
Chadsoilprojectrevenueincludesfourmainstreamsofmoney:
1. RoyaltiesonSalesofOil:ChadreceivesaroyaltypaidbyConsortiummembersonthe
gross sales revenue from crude oil after deducting the cost of transporting the oil to
marketthroughtheexportpipeline:
The royalty on oil from the three original oilfields covered by the 1998
conventionis12.5%.The1998conventionalsoincludestheMoundouliandNya
satellitefields.
The royalty on oil from Maikeri and Timbr, oilfields covered by the 2004
convention,is14.25%.
The Government of Chad informed Esso of their willingness to take royaltyinkind on

December 22, 2009. As a result, royalty in cash ceased as of May 1, 2012 and the
GovernmentofChadsfirstliftingtookplaceonJuly11,2012.
2. CorporateIncomeTax:In2006,Consortiummembersalsobeganpayingincometaxon
netprofitsfromtheoriginalthreefields.Thesepaymentsstartedamajornewsourceof
revenue for Chad. This new revenue source commenced several years earlier than
expecteda major benefit to the impoverished country. The early start stems mainly
fromtwomajorfactors:
The historically high prices for oil around the world over the last several years
increased total revenues to levels higher than estimated during the projects
planningphase.
The higher Brent crude price is triggering a 60% corporate income tax on the
original three fields as provided in the 1988 Convention (and a 55% tax on
MaikeriandTimbrand50%taxonNyaandMoundouli).
Bylaw,thestandardtaxratepaidbycorporationsinChadis40%,muchlessthanthe
60%currentlybeingpaidbytheConsortiumonoilfromtheoriginalthreeoilfields.Thus,
the oil project currently has a much higher corporate income tax rate structure than
otherbusinessesoperatinginChad.
3. Income Related to Pipeline Ownership: Chad owns a percentage of both pipeline
companies, TOTCO and COTCO, and thus shares in the profits from fees these two
companieschargetodeliverChadsDobacrudeoiltomarket.
4. Permits, Duties & Taxes: Various other sources also add to Chads income, including
permits,duties,employeetaxes,workpermitsandotherfees.
84
HostCountryRevenue
CONTEXT:CHADSFUTUREREVENUESMAYFLUCTUATESIGNIFICANTLY
Asnotedearlierinthischapter,highworldwideoilpricesofthelastseveralyearshaveyielded
major benefits for Chad. However, there is no way to forecast with certainty the future
volatility of the market or whether future prices will go up or down. In addition to world oil
marketprices,atleasttwootherfactorswillhaveapotentialinfluenceonChadsrevenue:
Calculationsofthecorporateincometaxontheoilsaleprofitsdependondepreciationofcapital
expendituresfornewfacilitiesandimprovementsovertime,assetoutintheoilconventions.
Despitetheprojectsinvestmentsinmaintainingproduction,extractingoilfromChadsoilfields
hasbeenchallenging.Similartootheroilfieldsaroundtheworld,outputdeclinesastheoilfields
mature.
For more on the projects investments in maintaining production levels from the oilfields see
thechapteronProduction&Construction.Foranillustratedexplanationofthetechnicalissues
thathinderextractionofChadsoilandthestepstakenbytheprojecttodealwiththoseissues
seethesectiononChadsChallengingGeologyinProjectUpdateReport#24.
CONTEXT:WORLDBANKGROUPROLEINCHAD
InSeptember,2008,theChadianGovernmentpaidoffitsloansfromtwoofthefiveinstitutions
that make up the World Bank Group, the International Bank for Reconstruction and
Development(IBRD)andtheInternationalDevelopmentAssociation(IDA).Inturn,theIBRDand
IDA are no longer involved in the export pipeline project. The IBRD/IDA loans had partially
fundedChadsequitypositioninthetwopipelineoperatingcompanies.
TheWorldBankGroupremainsinvolvedinChadthroughtheInternationalFinanceCorporation
(IFC).TheIFCfacilitatedhundredsofmillionsofdollarsincommercialfinancingfortheproject
anddirectlyloanedtensofmillionsofdollarstothetwopipelinecompanies.
Thecontractsfortheseloansrequireongoingcompliancewithandmonitoringoftheprojects
Environmental Management Plan performance. The project paid off its loan in late December
2012andisevaluatingkeyareaswhereexternalmonitoringshouldstillbecontinued.
The IFCs environmental staff continues its work, including trips to Chad for ongoing
collaborationwithprojectstaffontheLandUseMitigationActionPlan.Formoreinformation,
pleaseseethesectionontheLandUseManagementActionPlan.
The IFC independent monitoring body, the External Compliance Monitoring Group (ECMG),
continuesitswork.
ChadsRevenueManagementPlanremainsinplaceeventhoughtheIBRDandIDAareno
longerinvolvedintheproject.
A loan by the European Investment Bank to Chad includes the Revenue Management Plan
requirements.Thatloanisstillineffect.
ChadianlawimplementingtheRevenueManagementPlancontinuesinforce.
85
HostCountryRevenue
CAMEROONSPIPELINEREVENUE
Cameroon obtains its project revenue primarily through transit fees from the export pipeline
system that intakes Chads oil at the Mbre river where the Chadian portion of the pipeline
ends.TheCameroonianportionoftheexportpipelinesystemthentransportsChadsoiltothe
MarineTerminallocatedoffshorefromtheseasidetownofKribi.AlthoughCameroonhasno
ownershipshareofChadsoil,itdoeshaveanownershipshareinthepipelinesystem.(Noneof
Cameroons own offshore oil wells contribute oil to the export pipeline.) Thus, Cameroons
revenuecomesfromfourincomestreams.
1. TransitFee:Whentheprojectagreementswerefirstnegotiated,Cameroonnegotiatedafixed
rate per barrel transit fee in order to have a secured flow of income rather than being at the
mercy of sometimes volatile oil prices. The transit fee belongs 100% to Cameroon and is not
sharedwiththeotherpipelinepartners.
2. CorporateIncomeTax:AsforanyothercorporationinCameroon,thepipelinecompanyCOTCO
paysincometaxestothegovernmentofCameroon.
3. Custom Duties and Other Taxes: Whenever the project brings goods into the country it must
paycustomsdutiesinadditiontoavarietyofothertaxesandpermitfees.
4. Income Related to Pipeline Ownership: As a part owner of the export system pipeline,
Cameroonreceivesaproportionalshareofthepipelinecompanyprofits.
CameroonsOilRevenueThrough2012(millionsofU.S.dollars1)
2004
2005
2006
2007
2008
2009
2010
2011
2012
Project
toDate
TransitFees
24
27
23
22
20
18
18
17
15
186
IncomeTax
10
10
42
Customs
Dutiesand
Othertaxes
10
33
Income
Relatedto
Pipeline
Ownership
16
15
14
14
13
10
108
ProjectTotal
40
44
41
38
36
38
44
42
42
368
1. Roundedtonearestwholenumber
86

Chad Export Project Year End Report 2012 Highlights

Transféré par

Informations du document

Description originale:

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Chad Export Project Year End Report 2012 Highlights

Transféré par

Droits d'auteur :

Formats disponibles

Chad Export Project

Project Update No. 33

This report has been prepared by Esso Exploration and

Oilfield development and production in Chad is conducted by Esso Exploration and

Pipeline activities in Cameroon are conducted by the Cameroon Oil Transportation

Oil Field Development Area

Chad/Cameroon Development Project

LevelI LevelII LevelIII

Could give rise to a serious impact

Only when we have verified the pipelines depth

Q12012 Q22012 Q32012 Q42012

Q12012 Q22012 Q32012 Q42012

Q12012 Q22012 Q32012 Q42012

Avoiding or minimizing resettlement of households through project redesign and by

Q12012 Q22012 Q32012 Q42012

Almost 80% of the Chadians and Cameroonians working

Q12012 Q22012 Q32012 Q42012

The Government of Chad informed Esso of their willingness to take royaltyinkind on

Vous aimerez peut-être aussi