First oil shipment reaches international market

Cameroon and Chad, two of the world's poorest countries, began to sell oil on Friday as the first shipment of 950,000 barrels of crude from their joint pipeline reached the international oil market. The event marked the culmination of a project that started in 1996 when Chad and its southern bilingual neighbour, Cameroon, signed a treaty to construct a 1,070 km long oil pipeline that runs from southern Chad to Cameroon's ports. The Chad-Cameroon Petroleum Development and Pipeline Project is expected to generate an annual income of US $80 million for Chad and $20 million for Cameroon over the next 25 years, the World Bank said in June when oil production started. According to the Bank, the oil money should in the short-term increase government revenues by as much as 50 percent in Chad where per capita income among the country's eight million people is $200 and illiteracy is over 50 percent. "The Chad-Cameroon project represents an unparalleled opportunity for creating a much brighter future for Chad. At present, the country cannot afford to provide the minimum public services necessary for ensuring a decent life for its people," the Bank said. Cameroon too counts on reaping benefits to alleviate similar socio-economic ills that have plagued Chad. At its peak, the pipeline will produce 250,000 barrels per day, about one tenth of the production of West African oil giant Nigeria. The pipeline was developed by an international consortium in which ExxonMobile holds 40 percent of the stakes, Malaysia's Petronas 35 percent and ChevronTexaco 25 percent. The World Bank has invested close to $93 million in the $3.7 billion-project and others including the European Investment Bank and the US Export-Import Bank have invested in it. Human rights groups and environmentalists have however raised an alarm over the potential for misappropriation of funds, saying should that happen then the poor may not benefit from the oil money. They also warn of possible environmental degradation. According to the United Nations 2002 Human Development Index, Chad ranks 166 out of 173 countries while Cameroon was 135th on the index.