COTCO, 10 Years of Forging Cooperation, Advancing Development

Operating the Chad-Cameroon Oil Pipeline has accelerated socio-economic development in the two countries and solidified bilateral ties.

As the Cameroon Oil Transportation Company - S.A. (COTCO), counts its achievements in ten years of operation of the Chad-Cameroon Pipeline, which consists in transporting Chadian crude oil through Cameroon to the international market, records show that relations between the two countries has been solidified and socio-economic development given a boost.

History of the Project

Records show that from inception of the project, it was clear that Cameroon was an indispensable partner for the exportation of Chad's oil to world markets. It was in October 2000 that the long years of research, study, planning and public consultation showed signs of fruition. This was with the collaboration between Chad, Cameroon and a consortium of companies: Esso, Petronas and Chevron.

A financial input from the World Bank facilitated the two countries to becoming equity partners in the project. Massive construction took off and three years after, the first Chadian crude oil completed its 1,070 km journey through the export pipeline and arrived at the maritime terminal near Kribi, Cameroon. On October 3, 2003, the first export tanker left the Komé-Kribi 1 terminal with the first shipment of oil.

Participatory Development

The project held almost 5,000 public consultations in Chad and Cameroon before and during construction. These consultations were the initial steps on the long path of collaboration with the many people and organisations. For instance, the project worked closely with the Bagyeli/Bakola people of the southern part of Cameroon and in 11 cases, the original pipeline route was moved away from settlements at the request of the affected population.

Preserving Cameroon's Ancient Heritage

In digging the two-metre deep trench for the 1,070 km pipeline from Komé to Kribi, the project created one of the longest archeological study transects in history. The effort uncovered over 470 sites, dating back to the Stone and Iron Ages. The findings from this study were published in a book, "Komé-Kribi: Rescue Archeology along the Chad-Cameroon Oil Pipeline, 1999-2004."

Pipeline Operations Proper

Information from COTCO indicates that the pipeline alone is not sufficient to transport crude oil. Along the route, the project constructed massive pump station complexes to push the oil through the pipeline. These include the Pump Station 1 at the Komé oilfield and Pump Stations 2 and 3 in Dompta and Belabo in Cameroon.

A pressure reducing System in Kribi and a Floating Storage and Offloading Vessel, moored 12 km off the coastline are other major components of the Export Transportation System (ETS). Valves, corrosion prevention systems, fibre optic cable and dozens of other components support the integrity of the ETS and provide mechanisms to control the flow of oil.

Veritable Sustainable Partnership

The Chad-Cameroon Pipeline Project starts in one Central African country and traverses another, necessitating close collaboration by both nations. Today, COTCO works closely with the Cameroon Pipeline Steering Committee, an inter-ministerial body formed by government to serve as an interface between the project, the government and the public.

Currently, COTCO is working in synergy with the government of Cameroon to modify two sections of the pipeline in support of the Lom-Pangar Hydropower project in the East Region. This is meant to facilitate business growth and the overall development in the country by significantly increasing its electricity power generation capacity.

Economic Impact

Ten years after oil first travelled through the Chad-Cameroon pipeline, over 1,100 Cameroonians worked for COTCO, representing over 95 % of the total workforce. Today, the project's onshore pipeline transportation system is now operated entirely by Cameroonians. At the end of 2012, the Cameroon portion of the project had generated almost 400 million dollars (about FCFA 190.9 billion) in revenue for government through transit taxes, corporate taxes, customs duties and other taxes and income related to pipeline ownership.

In addition to generating billions of FCFA for the State, the project has also produced a number of additional benefits for both countries. During construction, 600 km of existing roads and pathways in Chad and Cameroon were converted into wide, laterite-paved roadways suitable for auto and truck usage.

One of such improvement was the construction of a modern concrete bridge crossing over the Mbéré river, which created a new international connection between Chad and Cameroon. At the end of 2012, the project's purchases of goods and services from Cameroonian suppliers amounted to about FCFA 550 billion.

What Future?

New sources of crude oil will soon be flowing through the Chad/Cameroon pipeline export system thanks to successful negotiations between pipeline owners of the two countries. It will allow Chad to unlock more of its oil resources while providing the new operators with access to an existing gateway to international markets. Cameroon will benefit from ongoing and increasing revenue streams as the additional volumes of crude oil are transported.