Table of Contents and Snapshot Summary (PDF)

Chapter 2 - Production & Construction (PDF)

The production team continued work aimed at enhancing daily output from the oilfields during the first half of the year.

- A total of 47 production wells were added to the inventory, bringing the total to 326 production wells.

- Twenty-five of the new wells were included in the new Moundouli oilfield which began producing at the end of the first quarter.

- Looking to the future, Chad has approved the concession and environmental plans for another new field, Maikeri, with a potential 20 more new wells in 2007.

Chapter 3 - Context: Chad's Pipeline (PDF)

In the first half of 2006, the project shipped 26.7 million barrels of Chadian crude oil to world markets. Average daily production so far in 2006 has been just over 154 thousand barrels per day.

- Chad has received more than $648 million in various types of payments from Consortium members since the project began, about $223 million being paid in the first half of 2006.

- Of that amount, royalties on crude oil shipments generated $138 million paid to Chad in the first half of 2006, a total of $536 million in royalties since the project began.

Chapter 4 - Reportable EMP Situations (PDF)

Project environmental monitors recorded a total of 23 Environmental Management Plan noncompliance situations in the first two quarters of 2006. Four small spills occurred during this reporting period.

- Eleven of the non-compliance situations were recorded in the first quarter and 12 in the second quarter.

- All but three of the non-compliances were categorized as Level I situations, the most minor level of non-compliance.

Chapter 5 - Safety (PDF)

Safety performance continues at a good level. The cumulative recordable incident rate for all project groups held steady at 0.44 incidents per 200,000 work hours.

- Four lost time incidents took place in the first half of 2006. A total of 29 restricted work and medical treatment cases were recorded in the same period.

- The drilling group closed the second quarter with a record of 19.5 million hours worked without a lost time incident, a perfect record since drilling began in late 2000.

- Work started on a million dollar expansion of the project’s electronic driver monitoring system, allowing safety advisors and managers to check driver safety performance by constantly recording speed and other safety factors.

Chapter 6 - Consultation & Communication (PDF)

During the first half of 2006, the project held nearly 725 public consultation sessions, reaching more than 10,800 people in Chad and Cameroon.

In Cameroon the social statement program continued addressing issues raised through a consultation effort in collaboration with NGOs and Cameroon’s project monitoring committee.

- At the Lom River pipeline crossing, the project opened up a channel in the rocks to improve canoe access for fishermen from local villages.

- A study has begun into the performance of more than 60 water wells along the pipeline right of way to determine what corrections might be needed. The wells were given to villages by the project’s community compensation program.

Chapter 7 - Compensation (PDF)

Total individual land use compensation paid by the project over the last four quarters totaled over 1.1 billion FCFA ($1.7 million) in cash and in-kind payments.

- A total of almost 10.4 billion FCFA ($16 million) in individual compensation has been disbursed since the project began.

- In Chad, individual land user compensation stabilized at a level of around 200 million FCFA in the first and second quarters of 2006.

- In Cameroon, compensation has been at minimal levels since primary construction was completed in late 2002.

Chapter 8 - Update: Land Use in the Oilfield Development Area (PDF)

Major progress has been made in clearing the reclamation backlog for temporary use land in the Oilfield Development Area. Nearly 90% of the temporary use land in the Oilfield Development Area (the original three fields area) has now been reclaimed.

- A study has been launched into Oilfield Development Area land use, including an analysis of the effectiveness of the compensation and resettlement program defined in the Environmental Management Plan.

- Within months of putting the Moundouli oilfield online, nearly all the temporary use land for the new oilfield had already been reclaimed and returned to its traditional land users.

Chapter 9 - EMP Monitoring & Management Program (PDF)

An artificial reef has been built off the coast of Kribi to provide new fish habitat and satisfy concerns of area fishermen who worried that the marine terminal might affect their fishing.

The first phase of a major road paving campaign has nearly been completed. The road dust control plan calls for continuing the paving work for several more years.

Chapter 10 - Local Employment (PDF)

Overall employment levels for the project fell somewhat in the first half of 2006 as construction was completed on the new Moundouli oilfield in Chad.

- Total project direct employment in Chad at the end of the second quarter fell to about 6,500 people, a drop of about 800. Chadians made up about 83% of the workforce in Chad.

- Total project direct employment in Cameroon at the end of the second quarter increased to nearly 1,300, a gain of 200. Cameroonians made up about 92% of the workforce in Cameroon.

- In Chad, hiring was underway for up to 40 permanent positions with the project. A total of 4,600 Chadians applied for the positions and about 10% of them were invited to testing.

Chapter 11 - Local Business Development (PDF)

Project purchases of goods and services from local suppliers totaled nearly 113 billion FCFA ($172.8 million) for the twelve months ending with the second quarter of 2006. That spending level represents a 7% increase over the spending for the 2005 calendar year.

- In Chad, spending in the twelve month period totaled 83.4 billion FCFA ($128.3 million), bringing project spending to date in Chad to 479.7 billion FCFA ($738.0 million).

- In Cameroon, spending in the twelve month period totaled 29.3 billion FCFA ($44.5 million), bringing project spending to date in Cameroon to 360.2 billion FCFA ($553.6 million).

Chapter 12 - Worker Health (PDF)

The high malaria-risk rainy season was just beginning throughout the project area near the end of the second quarter.

- Workers for the project’s operations in Cameroon continue to compile a nearly perfect record for malaria prevention – more than 3.5 years without a recordable malaria case.

- At mid-year, workers in Chad had gone more than 110 days without a recordable malaria case, sustaining a low malaria infection rate of 0.62 recordable cases per 200,000 working hours for non-immune personnel.

Chapter 13 - Community Health (PDF)

Work on three Africa Health Initiatives continued to make progress during the first half of 2006.

- Clinic upgrades have nearly been completed in two villages in the oilfield area in southern Chad. One clinic has already been upgraded. A total of five will be renovated.

- A campaign to reduce endemic cholera has completed its work and no cholera cases have been recorded for nine months in three of the four targeted quartiers in Douala.

- The social marketing scheme to distribute mosquito nets in Cameroon has met objectives for opening up distribution points but distribution of nets has been lower than hoped.

Chapter 14 - Five Years Later: Cameroon’s Environmental Foundation (PDF)

Chapter 15 - Context: Chad’s New Revenue Source (PDF)

Significantly increased oil revenue payments to Chad from a major new stream of oil revenue should enhance Chad’s poverty relief efforts.

- The new revenue stream opened up as some Consortium members began paying a 60% corporate income tax under the terms of the 1988 Convention agreement for development of Chad’s oil resources.

- At the same time, the Government of Chad has resolved its dispute with the World Bank and agreed to greatly expand its spending to alleviate poverty. Chad has committed to devote 70% of all the country’s revenues - not just oil royalties and taxes - to poverty relief.

Chapter 16 - Update: Chad’s Revenue Management Plan (PDF)

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