Table of Contents and Snapshot Summary (PDF)

Chapter 2 - Construction, Commissioning & Production (PDF).

The Project has made its first sale of crude oil to world markets, marking the formal beginning of the Project’s production phase.

- In mid-September, the first Chadian crude oil completed its 1,070 kilometer journey through the export pipeline and arrived at the marine terminal near Kribi, Cameroon.

- As the quarter was ending, an export tanker arrived and began loading crude oil from the Floating Storage and Offloading vessel.

- On 3 October, the export tanker sailed away from the marine terminal, loaded with nearly one million barrels of crude oil.

To commemorate the historic achievement of first oil production, the Consortium and the Republic of Chad held an inauguration ceremony at the central oilfield facility near Komé. High level delegations from seven countries attended, including four African heads of state. To climax the ceremony, Chadian President Idriss Déby opened a symbolic valve sending crude oil on its way to the marine terminal in Cameroon.

Work continues on schedule to bring the Project up to full production status.

- So far, 90 of approximately 250 planned oil wells have been drilled. Since drilling in the Miandoum oilfield has been nearly completed, drilling crews are now focusing on the Komé field.

- Most of the facilities construction work has been completed and efforts are now concentrated on the remaining components of the central oilfield facility and infrastructure to support the development and operation of the oilfields.

Chapter 3 - Reportable EMP Situations (PDF)

The number of EMP non-compliance situations recorded during the third quarter was the lowest since construction began three years ago.

- Only two Level I non-compliance situations were recorded in the quarter, along with one minor spill on land.

- The primary reason for the small number of non-compliance situations is the fact that most of the Project’s construction work has been completed.

Chapter 4 - Safety (PDF)

The Project’s overall on-the-job safety record continues to be very good, with a Recordable Incident Rate of 0.42 per 200,000 hours worked.

- Workers for facilities construction contractor TCC have achieved 40 million continuous hours on the job without a lost time incident.

- At the end of the quarter, oil well drilling and servicing contractors Pride Forasol and Schlumberger were approaching nine million continuous hours without a lost time incident.

Chapter 5 - Consultation & Communication (PDF)

The Project conducted 169 public information and consultation sessions in the third quarter, reaching over 4,800 people.

- In Chad, consultation focused on community safety and helping demobilized construction workers adjust to the Project’s shift to significantly lower levels of employment for the production phase.

- In Cameroon, key consultation themes have been finalizing compensation claims and helping communities eligible for the Project's community and regional compensation program make their choices of micro-development projects.

Chapter 6 - Compensation (PDF)

Since the Project’s compensation program began, approximately 7.6 billion FCFA ($11.7 million) in cash and in-kind payments has been distributed to individual land users.

- In Chad, individual compensation distributed in the third quarter totaled over 70 million FCFA ($108 thousand).

- In Cameroon, individual compensation paid in the third quarter was nearly 106 million FCFA ($163 thousand).

Regional and community compensation programs are well into their implementation phases in both host countries.

- In Chad, construction is almost complete on six community school buildings, and contracts are in the bidding process for the construction of additional schools, water wells, and other community facilities.

- In Cameroon, the construction of micro-development projects is well advanced, with most categories of the regional and community compensation program being at least 80% completed.

As of the end of the quarter, only 33 households have been physically resettled in Chad as a result of the Project's land needs.

- Project efforts to reduce resettlement impacts have included two training programs as alternatives to physically moving households to different communities.

- A total of 70 households have chosen either the off-farm or the improved agriculture training option in lieu of traditional resettlement.

Chapter 7 - EMP Monitoring & Management Program (PDF)

The U. S. State Department presented the Project with its Excellence Award, an acknowledgment of the Project’s transparency and its efforts to foster local economic and social development. \

The Project’s water monitoring program is now fully in place. The final component of the eight-point program was put into operation this quarter with the implementation of waste water discharge monitoring on board the Floating Storage and Offloading vessel.

Ceremonies have been held to commemorate Esso Chad's two latest education donations. A second, six classroom building was donated to the Bessao school and a roof and classroom equipment were donated to the Doba School for the Deaf.

Chapter 8 - Local Employment (PDF)

Demobilization of construction phase workers continued in the third quarter. Total direct Project employment at the close of the quarter had dropped to just over 6,000 workers, less than half the figure one year ago.

- The total work force in Cameroon has now dropped below 1,000 people, with the pipeline construction work force being totally demobilized.

- In Chad, the total number of Project workers dropped by 15% and demobilization was beginning among workers constructing the central oilfield facilities.

- Total wages paid to Chadian and Cameroonian workers in the third quarter of 2003 totaled over 4.7 billion FCFA ($7.3 million).

Chapter 9 - Local Business Development (PDF)

Chapter 10 - Worker Health (PDF)

Overall Project spending with local businesses this quarter continued a downward trend that corresponds to the impending completion of the construction phase. Total expenditures with local suppliers in the third quarter of 2003 were 36.3 billion FCFA ($55.8 million), down by about 25% compared to the previous quarter.

- In Chad, Project spending with local businesses dropped by 30% this quarter to 21.9 billion FCFA ($33.7 million).

- In Cameroon, Project spending with local businesses dropped by 16% this quarter to 14.4 billion FCFA ($22.1 million).

- Since construction started, the Project has purchased over 481 billion FCFA ($741 million) in goods and services from Chadian and Cameroonian businesses.

Chapter 11 - Community Health (PDF)

After many months of preparation, Project-supported Roll Back Malaria field programs have started in Cameroon. A total of 9,000 anti-mosquito bed nets were distributed in two of the five targeted communities, Dompta and Kribi. Anti-malaria education programs were also conducted in both locations.

Chapter 12 - Environmental Foundation (PDF)

The Management Board of FEDEC, the Foundation for Environment and Development in Cameroon, have held their ninth meeting.

- The Board received progress reports on the organization’s biodiversity programs being undertaken by two international conservation NGOs in two new national parks in Cameroon.

FEDEC has collaborated with COTCO to help improve housing for the Bagyeli/Bakola people. Under the auspices of the Indigenous Peoples Program, the Foundation has been providing expertise and field support to the Project’s regional and community compensation program in Bagyeli/Bakola settlements.

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