Table of Contents and Snapshot Summary (PDF)

Chapter 2 - Production & Construction (PDF)

All three of the Project’s original oilfields have now been brought online.

The startup of the third field increased the total output from the Project, making it possible to boost average daily production to 205,000 barrels as of the end of the third quarter. A new single day record of 220,000 barrels was also achieved during the quarter, moving the Project closer to the planned maximum average production level of 225,000 barrels per day.

The first 50 million barrels of Chadian crude oil have now been shipped to world markets through the marine terminal at Kribi, Cameroon. As the third quarter of 2004 closed, the Project completed its 55th export tanker shipment.

Chapter 3 - Reportable EMP Situations (PDF)

Field monitors recorded a total of seven Environmental Management Plan noncompliance situations in the third quarter of 2004. Three of the seven situations were categorized as Level II non-compliances and the rest were classified as Level I situations, the lowest level of non-compliance. One minor spill was also recorded.

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

Chapter 4 - Safety (PDF)

The Project maintained its generally good workplace safety trends during the third quarter of 2004.

- There were no serious recordable on-the-job injuries.

- Trends for minor injuries and first aid cases were downward compared to previous quarters.

- The total number of traffic accidents also declined, largely due to the driver safety initiatives described in the previous Quarterly Report.

An additional contributing factor to these positive safety performance trends was the ongoing demobilization of the Project’s total work force as the major construction phase nears a conclusion.

Chapter 5 - Consultation & Communication (PDF)

The Project conducted nearly 190 public consultation sessions in the third quarter, reaching over 6,800 people. Consultation activities covered the Project’s Area Specific Oil Spill Response Plans and discussions with residents who live in areas being considered for potential new oilfield development in southern Chad.

Chapter 6 - Compensation (PDF)

Total individual land use compensation paid by the Project in Chad and *Cameroon has reached over 8.4 billion FCFA ($12.9 million) in cash and inkind payments. Over 160 million FCFA ($246 thousand) was added to the total in the third quarter of 2004.

- In Chad, individual compensation distributed in the quarter totaled nearly 143 million FCFA ($220 thousand).

- In Cameroon, individual compensation paid in the quarter was over 17 million FCFA ($27 thousand).

Chapter 7 - EMP Monitoring & Management Program (PDF)

Activities in support of Environmental Management Plan compliance this quarter ranged from the preservation of cultural sites and artifacts to the monitoring of groundwater in the Project area, and the recycling of waste. (For additional information on the Project’s EMP monitoring program, see the section on Reportable EMP Situations.)

Chapter 8 - Local Employment (PDF)

Employment levels began dropping sharply in Chad during the third quarter as work neared completion on the original three oilfields Project. Overall employment fell by over 14% during the quarter and demobilization of most construction workers on the original Project should be nearly complete by the end of the year.

- Overall Project employment fell by over 14%. The total number of Project workers at the end of the third quarter of 2004 fell below 3,700 people, the lowest level since early 2001 when construction began.

- Total employment in Chad fell by over 560 workers to just over 2,800 people as the final construction phase demobilization began to take effect.

- Employment in Cameroon fell only slightly to just about 850 people, roughly at the stable level reached at the beginning of the year.

Chapter 9 - Local Business Development (PDF)

Overall Project purchases of goods and services from local suppliers has been generally stable for a full year, generally hovering around 30 billion FCFA ($47 million) per quarter.

- Project spending with Cameroonian businesses was up 36% in the third quarter to 11.6 billion FCFA ($17.8 million).

- In Chad, the Project’s local business spending fell slightly to 19.2 billion FCFA ($29.5 million).

Chapter 10 - Worker Health (PDF)

The project has achieved a dramatic reduction in malaria rates for the third year in a row based on statistics as the rainy season began drawing to a close at the end of the third quarter. In addition to its extensive malaria prevention program, Project clinics provided over 11,600 worker medical consultations during the quarter.

Chapter 11 - Community Health (PDF)

The Project continued its efforts this quarter to assist local communities with some of their severe endemic health challenges, including cholera and HIV/AIDS. In addition, planning has started for a major series of Community Health Outreach Program initiatives in both Chad and Cameroon.

Chapter 12 - Context: Marketing Chad’s Oil (PDF)

The Project has now shipped over 50 million barrels of Chadian crude oil to market and the results so far have been positive due to the timing of Chad’s entry into the world oil market. World market conditions have driven crude oil prices to unusually high levels, beginning in the fourth quarter of 2003 when the first oil was shipped and continuing into the fourth quarter of 2004.

- Total revenue for Chad so far has been higher than anticipated by some revenue estimates during the Project’s planning phase. (For more information on total Project oil shipments and revenue, see the section on Construction & Commissioning.)

- However, based on the fundamental quality characteristics of the Chadian “Doba Blend” crude oil, it is clear that oil from the Project will not be bringing in the very top prices garnered by lighter competing crude oils such as the widely reported benchmark pricing for the high quality Brent crude.

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