Loan agreed to guarantee US exports for Chad-Cameroon oil line

The transaction has been referred to the US Congress for a statutory review period; the sponsors of the project are ExxonMobil , Chevron , and Petronas . Exxon Mobil is the project manager, to be assisted during pipeline construction by Stanhope Management , a subsidiary of Fluor Daniel.

Willbros Engineers will undertake pipeline installation for the 1,050-km, 225,000brl/d pipeline, while Kellogg Brown & Root will construct the pump stations and other facilities, and IWL Communications will build a telecommunications system to support the project. The pipeline will serve three oilfields (Miandoum, Bolobo, and Kome) which hare being developed in Chad as a separate project that is being financed by sponsor equity.

In compliance with US Congressional mandates, Ex-Im Bank has evaluated the environmental effects of the project, and has determined it to be in agreement with the Bank’s environmental objectives. The bank, with the project sponsors and participants, has been to great lengths to identify and provide mitigation for the protection of the natural and human environment in the project areas: this includes evaluating numerous pipeline routes before selecting the one with significantly-reduced environmental and social impacts. The selected route parallels, as far as possible, already-degraded and disturbed areas such as railways, roads, and areas already largely impacted by human activities. The route avoids sensitive areas in the Mbere Rift Valley and the Deng Deng Forest, and the Atlantic Littoral Forest crossing has received special study and mitigation efforts.

The pipeline project includes a revenue-management programme which is intended to govern the use and distribution of oil revenues by the Government of Chad to decrease poverty and ensure that benefits from the project reach citizens, especially those living near the oilfield area. Royalties will be deposited in an offshore escrow account and dedicated primarily to poverty-relief programmes.

The Ex-Im Bank is an independent US government agency that assists in financing the export of US goods and services to developing markets around the world, through export credit insurance, working capital loan guarantees, and direct loans.

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