Table of Contents and Snapshot Summary (PDF)

Chapter 2 - Production & Construction (PDF)

The project devoted major resources during the past year to a comprehensive effort to maintain and eventually increase daily crude oil production levels.

- The Consortium spent $232 million during 2005 in additional development funds on the effort to further develop Chad's oil.

- To date the project has invested $4.7 billion in capital expenditures in its efforts to fully realize the promise of Chad’s oil deposits.

Efforts to increase oil production capacity have included two new oilfields in 2005.

- Construction of the new 25 well Moundouli oilfield was ahead of schedule at year’s end and it should produce its first oil from a few initial wells in March of 2006 if all goes to plan.

- The smaller Nya oilfield began producing crude oil at mid-year, adding four wells to the project’s production capacity, located adjacent to the original Miandoum oilfield.

Exploration for new production opportunities continues.

- Major exploration efforts have shifted to the Sahr and East Doseo area where access roads, well pads, and worker construction camps have opened the way for test drilling.

- Earlier exploration drilling in the Maikeri-Poutouguem area has proven the commercial feasibility of a potential new oilfield which could add as many as 17 new producing wells.

- Engineers are assessing the feasibility of a potential additional new development based on test well results at Timbré.

To fully extract the oil deposits in the three original oilfields, the project has been applying a variety of techniques to improve performance at the Komé, Miandoum, and Bolobo fields.

- An infill program will make the oilfield more dense, with as many as 450 wells, about 50% more than anticipated during the original design phase.

- In addition, a total of 115 wellwork procedures were conducted in 2005 to help improve the flow of crude oil from existing wells.

As of the end of 2005, the project had shipped over 133 million barrels of Chadian crude oil to world markets.

- A total of 143 export tanker shipments have been completed since the first sale of oil in late 2003. Average daily production for the year 2005 was just over 170,000 barrels per day.

- More than $420 million in royalties, dividends and share premiums had been paid to the government of Chad by the end of 2005, with $241 million of the total being paid in 2005.

- The payments were deposited in escrow in a London bank as required by Chad’s Revenue Management Plan.

Progress continues on new headquarters buildings in Chad and Cameroon.

- Plans have been approved for the new offices for COTCO, in Douala, Cameroon. Ground breaking will take place in the first quarter of 2006.

- Project offices have started moving into the new headquarters building in N’Djaména, Chad, now that two years of construction work have been completed.

Chapter 3 - Reportable EMP Situations (PDF)

Field monitors recorded a total of 27 Environmental Management Plan non-compliance situations were recorded in the second half of 2005.

- All but four of the 27 non-compliances were Level I situations, the lowest level of noncompliance.

- Four minor spills occurred during the two quarters of this reporting period.

- For 2005, 49 non-compliance situations were recorded, 10 of them Level II noncompliances.

Chapter 4 - Safety (PDF)

Project workers achieved a nearly two year record of no major workplace injuries. The successful accident-free run was broken a few days before the end of the year by a vehicle accident.

- Up until that time, the combined project teams had logged a total of 39.8 million hours of work without a major accident.

- The cumulative recordable incident rate for all project groups stands at 0.42 incidents per 200,000 work hours. The rate held steady in 2005 and includes over 152 million work hours since project construction began in 2000.

- The injury accident rate for project vehicles continues about one-third the rate of injury accidents on the highways of the United States.

Chapter 5 - Consultation & Communication (PDF)

The project held nearly 1,200 public consultation sessions in 2005, reaching more than 25,000 people in Chad and Cameroon.

- Much of the project’s consultation work was focused in the East Doseo area, east of Sahr, in support of the exploration program in the somewhat remote area.

- In Cameroon, the project launched a new annual Social Statement process which establishes a framework of working through NGOs to identify and resolve outstanding issues. The first year’s Social Statement has been completed.

Chapter 6 - Compensation (PDF)

Individual land use compensation paid by the project in 2005 totaled over 1.6 billion FCFA ($2.5 million) in cash and in-kind payments.

- A total of 10.1 billion FCFA ($15.5 million) in individual compensation has been disbursed since the project began.

- Major compensation activity during 2005 was concentrated in the Moundouli area for construction of that new oilfield and in the East Doseo exploration area.

Chapter 7 - Update: Land Use, Reclamation & Return in the Oilfield Area (PDF)

The project moved to complete its land reclamation and return program in the Oilfield Development Area in 2005. To date, about 25% of the temporary construction use land has been reclaimed and returned.

- During 2005, a total of 64 oil well pads were reclaimed with topsoil, reducing their size by 30%. A total of 32 borrow pits were reclaimed. Old airstrip land was also reclaimed.

- A post-construction study will examine the implementation and effectiveness of the project’s compensation and resettlement program in the oilfield area.

Chapter 8 - EMP Monitoring & Management Program(PDF)

In an initiative to significantly reduce dust conditions during the dry season, the project plans to roughly quadruple the amount of road paving in the oilfield area over the next few years. Initial work in 2006 will focus on the project’s heavily traveled main “spine” road.

The fishing communities in the Kribi region of Cameroon have approved the project’s plans for constructing an artificial reef to promote fishing in the area. The reef will be constructed by linking recycle tires into sea bottom modules that will provide fish habitat.

Chapter 9 - Local Employment (PDF)

A study of employment levels has shown that the project’s direct employment of Chadians is much higher than originally believed.

- Based on the study, total direct employment by the project in Chad at the end of 2005 was over 7,300 people, with Chadians making up 83% of the workforce.

- The employment study also revealed that the project has invested over $55 million in training Chadian workers since 2001.

- Total direct employment by the project in Cameroon at the end of 2005 was nearly 1,100, with Cameroonians making up 90% of the workforce.

- More than 59% of the Chadians and Cameroonians working for the project held skilled, semi-skilled or supervisory positions at the end of 2005.

- Wages paid to Chadian and Cameroonian workers in 2005 totaled nearly 21.8 billion FCFA ($33.5 million).

Chapter 10 - Local Business Development(PDF)

Project purchases of goods and services from local suppliers totaled 105 billion FCFA ($161.5 million) during 2005.

- Spending for 2005 was comparable to the previous year, declining approximately 5% from the 2004 level.

- Since construction commenced, the project has purchased over 727 billion FCFA (over $1.1 billion) in goods and services from Chadian and Cameroonian businesses.

Chapter 11 - Worker Health (PDF)

The project’s aggressive malaria prevention program has continued to make strides throughout 2005 with another significant improvement in the infection rate for workers.

- In Cameroon, the project has achieved another year with no recordable malaria cases – reaching a record of 1,087 days without a recordable case by year’s end.

- In Chad, 23 malaria cases were recorded, 22 of them among the non-immune population and one in the semi-immune population. Sadly, an expatriate member of the drilling team from Morocco who contracted malaria succumbed to the disease in November.

- As a result of the malaria control program, the project-wide infection rate has dropped from 11.44 cases per 200,000 work hours in 2002, to a rate of 1.19 in 2005.

Chapter 12 - Community Health (PDF)

Africa Health Initiative campaigns made dramatic steps forward in Chad and Cameroon during the second half of 2005.

- In Chad, construction for the renovation of the Komé village clinic has been completed. Africa Health Initiative funding has been expanded to fund renovations at two additional clinics for the coming year.

- In Douala, Cameroon, field work is underway in four impoverished neighborhoods that are struck by cholera each year during the rainy season. Among other efforts, neighborhoods have been organized into work parties to improve sanitation and safety of drinking water.

- Throughout Cameroon, an Africa Health Initiative grant for malaria prevention has funded a social marketing program that opened up 1,000 new distribution points for bed nets. The program distributed 45,000 nets in the last four months of 2005.

- Nearly 150 oil revenue-funded projects have been budgeted to date and about 40% of them have been completed.

- About two-thirds of the funding has gone to infrastructure projects such as roads and bridges that help Chadian citizens gain access to markets, schools, and medical care.

Chapter 13 - Update: Chad's Revenue Management Plan (PDF)

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