Chapters 1-4 (PDF)

Production oil well drilling has now commenced following last quarter's trial runs and exploration drilling.

- Three of the five drilling and completion rigs have gone into operation and the others are scheduled to begin work by the end of the next quarter.

- More than three-fourths of the initial 75 approved drill pads and their access roads have been constructed.

Most concrete foundations have been poured for the oilfield central facility.

Slightly more than one-fifth of the 1,070 kilometers of the pipeline has been welded and buried in the trench.

- Pipeline construction progress has averaged about two kilometers of pipeline welded per work day.

- The three pipe factories in France and Germany have now completed their pipe manufacturing work.

- Vegetation has started to grow back on the reclaimed pipeline right of way near Kribi, where pipeline construction began last quarter.

The Project moved nearly 1,500 truck loads and almost 2,000 railcar loads of freight this quarter.

- After a year of construction, the long-awaited new permanent bridge has been pushed into place across the M'béré River. The concrete bridge completes an all-weather route between the two host countries, reducing by 200 kilometers the overall distance by road from Moundou (2nd largest city in Chad) to a railhead at Ngaoundal, Cameroon.

- Work has started to repair where necessary the road from N'Djaména to Komé. This will clear the way for special heavy load trucks to deliver the massive electrical generators and turbines that will provide power to the oilfield. These heavy pieces of equipment will be flown to Chad in special freight aircraft. A beneficial by-product of this road repair work will be a somewhat improved road connection between N'Djaména and the south.

Work has now been underway for one full quarter to refit the Companion, the tanker that will serve as the Project's Floating Storage and Offloading vessel at the marine terminal.

- The vessel will be renamed the Komé-Kribi 1.

- Sandblasting and coating of the main deck is well under way.

- Inspection and refurbishment has begun on the cargo tanks.

- Valves, pipes and pumps are being removed or opened up so that they can be cleaned, repaired, and upgraded as required.

Contractor and Project field monitors recorded a total of 56 non-compliance situations this quarter, about the same number as was recorded in the previous quarter. There have been no critical (Level III) non-compliance situations recorded to date.

A total of nine reportable spills were recorded this quarter. No major spills occurred, with the largest being 1,000 liters in size. Two-thirds of the spills were 200 liters or less in volume.

The Project's overall worker safety record continues to be very good.

- The recordable incident rate accumulated by the Project since 1995 is 0.61.

- One lost time incident was recorded. A bus transporting pipeline construction workers along the right of way collided with a truck loaded with pipe. One of the bus passengers suffered a broken leg and was flown to Douala for treatment.

Several work units and individual prime contractor companies have compiled notable worker safety records.

- Contractor Sogea-Satom compiled 8 million hours without a lost time incident.

- The field facilities construction unit passed 3 million work hours without a lost time incident.

- Contractor David Terrassement achieved 2 million hours since its last lost time incident.

Chapters 5-7 (PDF)

Project consultation rose sharply compared to the previous quarter. More than 34,000 people participated in nearly 850 consultation sessions.

- Considerable consultation was carried out in support of the regional and community compensation program in Cameroon.

- Consultation also remained active regarding individual land use compensation in the oilfield area where various facilities have now been precisely located.

As of the end of the first quarter of 2002, the Project has paid over 5.2 billion FCFA ($8 million) in cash and in-kind compensation to individual land users, with over 490 million FCFA ($800 thousand) added to the total this quarter.

- The regional and community compensation program in Cameroon has advanced through the first two of four information provision and consultation steps.

- A contract has been signed with an NGO that will help the Project implement its community compensation program in Chad. GTZ, a German government-sponsored development agency, will select and train several local NGOs to assist in the execution of the program.

- The Project has developed an improved agriculture option to meet a surprisingly high demand for that option from households eligible for resettlement in the oilfield development area. A partnership for implementing the improved agriculture program has been established with an NGO that has specialized expertise in this field.

The Project commissioned the Wildlife Conservation Society's Cameroon Biodiversity Program to conduct a study of the primates that inhabit the forests around Bélabo, with a particular focus on gorillas. That study has now been completed and has validated a decision made prior to construction to move the pipeline out of the main portion of the Deng Deng forest.

Tests have been underway to identify ways to reduce road dust caused by the increased traffic in some areas.

Chapters 8-10 (PDF)

Project hiring of citizens of both Chad and Cameroon continued to climb this quarter.

- The Project-wide end-of-quarter employment total of 10,805 is more than 50% higher than the originally anticipated total of 7,000 workers.

- As of the end of the quarter, approximately 88% of the Project's workers were citizens of the host countries, up slightly from the end of the previous quarter.

Work stoppages that took place at several locations this quarter have all been resolved.

- False rumors were dispelled at Bam and at Komé where demonstrators blocked camp gates out of concern that the Project might not be meeting local hiring commitments.

- Negotiations in Cameroon resulted in improved pay and other resolutions to end work stoppages involving the pipeline construction and logistics contractors.

Project expenditures with Chadian and Cameroonian suppliers of goods and services totaled 51.6 billion FCFA ($79.3 million) in the first quarter of 2002, an increase of 43% over the previous quarter.

- In Chad, Project spending with local businesses jumped sharply, increasing 74% to 24.6 billion FCFA ($37.8 million) due largely to the post-rainy season increase in the pace of construction of central oilfield facilities.

- In Cameroon, Project spending with local businesses rose 23% versus the previous quarter to 27.0 billion FCFA ($41.5 million).

Nearly 1,300 training sessions were held during the quarter, including new worker safety, health, environment, and orientation sessions, classes in construction trade crafts, and high level skills training for trades such as welding.

Chapters 11-16 (PDF)

The Project's archaeological teams continue to find ancient iron smelting furnaces during pre-construction surveys and excavations.

- The number of iron smelting sites leads to a conclusion that there must have been considerable iron tool making activity in the region.

- Radiocarbon dating results suggest that some of the smelter sites date back as much as 3,000 years.

Project-operated clinics provided over 20,000 patient consultations to workers during the first quarter of 2002.

- An independent health and sanitation assessment identified various issues relating to catering, the medical preparation of expatriates before their arrival in country, and camp santitation practices.

- Action plans were prepared and presented to each of the Project's prime contractors in a series of meetings. Contractor response was immediate and all of the issues have been or are in the process of being resolved.

After months of preparation, the field work began this quarter for the Roll Back Malaria program in Chad.

- Two Chadian NGOs were contracted and trained to help implement the various village-level aspects of the Roll Back Malaria program.

- The first village malaria education sessions have taken place, and the distribution of anti-malaria bed nets to villagers has commenced.

The quantity of non-hazardous waste managed by the Project in the first quarter of 2002 tripled versus the previous quarter as post-rainy season construction activity accelerated along the pipeline route and in the oilfield area. Over 40% of the non-hazardous waste was recycled to villages or sent to approved recycling facilities.

The Management Board of the Foundation for Environment and Development in Cameroon (FEDEC) took steps in the first quarter of 2002 to begin its on-the-ground work.

- Contract offers were made and accepted for the positions of Foundation Administrator and Community Development Facilitator.

- A Fund Investment Manager was selected. A Swiss banking company will invest and manage the Foundation's endowment.

- The proposal of the Wildlife Conservation Society has been accepted in principal to play a key role in the work to be undertaken in the new Mbam and Djerem national park.

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