Exxonmobil Chad-Cameroon Pipeline Project
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Exxonmobil and the chad-cameroon pipelineRequired elements of the paper:Title Page: Include the team number and all team member names. (we can insert at when we make final document)Executive Summary: Findings most relevant to the decision maker, issues addressed, conclusions, recommendations, and their reasons.Statement of the Problem: Purpose and clear-cut objectives of your study. What problem(s) or question(s) did you set out to solve? What were the key issues raised?Background: Describe the business scenario that led up to the problem in that case. What are the internal and external contributing factors? Who are the stakeholders? What information is important to solving the case (industry trends, governmental influences, etc.)? Make sure to properly cite any external research that you include. Methodology: What you decided to do and how you did it. How did you gather the information (via experiment, survey, observation, or other data collection method)? What strategy or strategies that you learned in class did you apply to solve this case and why is it a good fit? This section should detail exactly how you came to your conclusions. Results: The summary and presentation of the results and why are they correct. This may include tables, graphs, charts, photographs, diagrams and other visual and/or verbal summaries.Conclusions and Recommendations: What you learned about the problem(s) or question(s) you set out to solve. Here I expect some repetition of the executive summery but with more details and justification of the recommendations.Appendix: Include any additional supporting material that supports your solution. References: Properly cite all research used to solve the case. At the very least you must list the case itself but also include any external research that you may do. Executive Summary:Exxonmobil Company BackgroundChad and Cameroon Chad and Cameroon are the two countries evolved in this petroleum development and pipeline project. Chad is a central African country bordered by Cameroon to the southwest. In the late 20th century, Chad and Cameroon are identified as two of the poorest countries in the world, facing numerous problems such as the lack of safe drinking water, rampant disease and limited access to electricity. The governments in both countries are corrupt and retained notorious record for their human rights. While Chad is struggling with internal conflict and turmoil between the south and the north, Cameroon is permeated by spreading fraud in its elections. Exxon spent 30 years to develop the oil fields at Doba in southern Chad to produce and transport oil. Due to the fact that Chad was landlocked, the Exxon Consortium signed an agreement with neighboring Cameroon to build an underground pipeline to carry the crude oil to a shipping terminal.
By the 1990s, the World Bank was focusing on stimulating the economic development throughout the world, especially in poorer countries. The bank took an interest in this petroleum development and pipeline project in 1993 and commissioned the governments of Chad and Cameroon to analyze the pipeline’s effect and produce an environmental assessment plan. This Environmental Assessment Report not only identified potential environmental and social costs to both Chad and Cameroon but also reported that the impacts of the pipeline project would transform the economy of Chad and Cameroon and bring large benefits to reduce the poverty in these two countries. Project IntroductionIt was widely known that the oil resources were abundant in Chad since the Republic of Chad began their mass oil exploration work in 1975. After the Chad’s 1979 civil war, Exxon consortium signed a 30-year oil concession agreement with Chad in 1988. The project was planning on building a pipeline to ship and sell the oil to western countries. Since Chad is a landlocked country, Exxon consortium also signed an agreement with Chad’s neighborhood country Cameroon to build a 1,070 kilometer(approximately 600 miles) underground pipeline.Pros and Cons In order to decide if it is suitable to stick to the project plan, we use the classic SWOT matrix, in other words strengths, weaknesses, opportunities, and threats, to make a trade off. Strengths1.Promising financial returns. 2. Experience of managing risks of environmental issues.3.First runner in the market. Weakness1.Conflict in EM, different company values for these two companies.2.No previous experience working in poor countries. Opportunities1.Best chance to get its reputation back.2.Support from the local governments.3.Funded by the Word Bank and other private investors. Threats1.Withdrawal of its partners.2. Environmental issues.3.Human right problems.4. Instability of the regime of local government