Sao Tome, Sao Tome and Principe, 14 March – Sao Tome and Principe and Nigeria have budgeted US$13 million for 2007 for the joint administrative structure for oil exploration, which is an annual increase of 44 percent, the Minister of Oil said in Sao Tome Tuesday.
Manuel Deus Lima told journalists that the decision had been made just over two days ago in the capital of Sao Tome and Principe at the end of a joint ministerial meeting for oil exploration between the two countries.
Set up in 2002, the Joint Authority is an organ that is responsible for administrating the Joint Development Area and for managing oil resources, under the political direction of the Joint Ministerial Council, at the basis of the February 2001 treaty which established that Nigeria receives 60 percent of revenues while 40 percent goes to Sao Tome.
Deus Lima said that for 2007, Nigeria would contribute around US$7 million, Sao Tome and Principe US$3 million and the joint authority itself would contribute US$3 million.
In 2006 the Joint Exploration Authority spent US$9 million in administrative and management services for exploration.
The Joint Authority is led by a Board of Directors made up of four executive directors, two of which are Nigerian and two from Sao Tome, nominated by their respective heads of state.
Five days ago, the joint authority signed a drilling contract for two oil blocs with China’s Sinopec and Switzerland’s Addax Petroleum, following the companies being granted the concession, which netted US$161 million for Nigeria and Sao Tome. (macauhub)