Guinea Bissau’s government approves licenses for oil operations

16 June 2006

Bissau, Guinea Bissau, 16 June – The government of Guinea Bissau approved Thursday the attribution of four licenses for “oil operations” in Guinean waters, without specifying which companies are involved, according to a statement from a Cabinet Meeting.

In the document the government said it had granted licenses for bloc 2, Blocs 4A and 5A and Bloc 7 of Guinea’s offshore oil area.

The licenses aim to continue research activities for oil and gas reserves, according to the government although no actual locations for prospecting were given.

It ahs been estimated for several years that the Guinea Bissau coast is rich in oil, and there are already some oil platforms researching in the country’s waters.

In 1994, the then presidents of Guinea Bissau, João Bernardo “Nino” Vieira, and Senegal, Abdou Diouf, signed an exploration agreement for their respective offshore areas.

Under the terms of that agreement, 85 percent of oil resources would be attributed to Senegal and Guinea Bissau would receive the remaining 15 percent.

In April 2000 the two countries signed an addendum to the agreement, boosting Guinea Bissau’s share in the agreement to 20 percent. (macauhub)