ChevronTexaco announces oil strike in Sao Tome bloc 1

29 May 2006

Sao Tome, Sao Tome and Principe, 29 May – ChevronTexaco said Saturday it had struck oil in a bloc located in the joint exploration area between Sao Tome and Principe and Nigeria, according to a representative of the US oil company in Sao Tome.

The director-general of ChevronTexaco, Tim Parsons, said that the strike was the result of the first drilling started over two months ago in bloc 1, known as Obô (forest), located at a depth of 1,720 meters.

Saying that, “reservoirs of hydrocarbons were found in the drilled well,” Parsons declined to comment on daily production of oil, saying it was necessary to carry out an evaluation and interpretation of the drill area.

“At the moment it is too early to say if ChevronTexaco and its partners have made a commercial discovery,” he said.

Parsons also spoke of the need to drill a second well to conclude “research” about the capacity of the bloc, located almost 300 kilometers of the northern coast of Sao Tome .

Drilling work, which began on March 15, had cost ChevronTexaco around US$37 million, Parsons said.

With a 51 percent stake in the bloc, ChevronTexaco is partnering Exxon Mobil, with a 40 percent stake, and Dangote Energy Resource, a Nigerian and Norwegian consortium with a 9 percent stake in the project.

Bloc 1, which was licensed in 2003 cost ChevronTexaco and its partners US$123 million in signing bonuses.

Signed in February 2001, the joint oil exploration treaty between Sao Tome and Principe and Nigeria granted 60 percent of revenue to Nigeria and the remainder to Sao Tome. (macauhub)