Too early to give dates for first barrels of oil from Sao Tome and Principe, Chevron says

12 February 2007

Sao Tome, Sao Tome and Principe, 12 Feb – The head of US oil company Chevron in Sao Tome and Principe said Friday in Sao Tome it was too early to estimate dates for production of the first barrels of oil from the reserves found of the coast of the archipelago.

“Until we can be certain that the amount of oil is commercially-viable, it is too soon to speculate about a date for the first barrels,” Tim Parsons told newspaper Jornal de Sao Tome e Principe.

For now, according to Parsons, the reserves found in the structure tested in the first exploratory well (Obo-1) and in bloc 1, “are not enough to justify economic development on their own.”

Parsons added that his oil company would only comment on the situation after the results of drilling in adjacent concessions arrived and an analysis of whether it was worth carrying out further test drills.

Parsons said, however, he was happy with the approval, in 2004, by the Sao Tome government of the law on Oil Revenue Management, drawn up with the aim of regulating payment, management, use and supervision of any revenue related to oil.

Sao Tome and Principe has already auctioned off six of the nine blocks in its joint exploration area with Nigeria, which will keep 60 percent of revenue from the blocs, while Sao Tome is granted 40 percent. (macauhub)