Chad-Cameroon pipeline

The Chad–Cameroon Petroleum Development and Pipeline Project is a controversial project to develop the production capacity of oilfields near Doba in southern Chad, and to create a 1,070-kilometre (660 mi) pipeline to transport the oil to a floating storage and offloading vessel (FSO), anchored off the coast of Cameroon, near the city of Kribi. It is operated by ExxonMobil (40%) and also sponsored by partners forming the consortium, Petronas (35%) and Chevron (25%). The governments of Chad and Cameroon also have a combined 3% stake in the project. The project was launched on October 18, 2000, and completed in June 2003 (the official inauguration took place in October of the same year).

It was largely funded by multilateral and bilateral credit financing provided by Western governments. The International Finance Corporation, the private-sector arm of the World Bank, provided $100 million of debt-based financing, and France's export credit agency COFACE and the U.S. Export-Import Bank each provided $200 million; private lenders coordinated by the IFC provided an additional $100 million.

The original consortium of oil companies involved in the pipeline project were Exxon, Royal Dutch Shell, and Elf Aquitaine. Negotiations started in 1988, with Chad and a consortium of oil companies signing a 30-year oil concession in the southern Chad region of Doba. In 1999, Royal Dutch Shell and Elf Aquitaine dropped the project due to controversies surrounding the project and volatile oil prices. As a result, Exxon opened the project up for bid to a select few corporations and in April 2000, Petronas of Malaysia and Chevron acquired stakes in the project. Exxon then enlisted the support of the World Bank to raise support within the international community. The World Bank agreed on the condition that certain environmental and social standards were enforced both in Chad and Cameroon, and that the revenues be put towards improving social and economic conditions.

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