Sao Tome and Principe: Six new wells drilled by 2009 in joint exploration area with Nigeria

29 April 2008

Abuja, Nigeria, 29 April – The president of the Joint Development Area (JDA) between Sao Tome and Principe and Nigeria, Jorge dos Santos, said Monday in Abuja that oil prospecting in four of the blocs on which a concession has already been granted will go ahead in 2009 when six new wells will be drilled.

Dos Santos, who was speaking at a ceremony at Abuja University, said that efforts were being made to set up offshore platforms to drill those wells.

Of the six blocs with concessions granted in the JDA, four already have production sharing contracts signed: Bloc 1 (operated by US company Chevron), 2 (Sinopec), 3 (Anadarko) and 4 (Addax).

Addax, which is partnered with China’s Sinopec, recently said that surveying in blocs 2,3 and 4 is expected to begin by the end of the year, with the drilling of 10 wells.

The Swiss-based oil company at the beginning of the year bought US oil company Exxon’s stake in bloc 1, becoming its second-largest shareholder, with 40 percent.

Bloc 1 was the first to be drilled, at the Obo-1 well, where traces of hydrocarbons were found in 2006.

Dos Santos added that the two tenders for granting oil licenses would provide the two countries with US$400 million, mainly in signing bonuses. (macauhub)