Sao Tome and Principe: Nigeria and Sao Tome to debate oil exploration

8 July 2008

Sao Tome, Sao Tome and Principe, 8 July – Sao Tome and Principe and Nigeria have started a meeting with a view to concluding the first auction of six oil blocs in the joint development area, the chairman of the joint authority, Jorge Santos said Monday in Sao Tome.

As well as analysing the contract proposal for sharing production of two blocs, which have yet to be granted, Santos said that the Joint Ministerial Council would also analyse a proposal for granting a contract for seismic surveys to Norwegian oil company, Petroleum Geo-Service (PGS).

Contracting PGS has the aim of carrying out a new seismic survey of the common area, located in deep waters, with a view to launching a new round of tenders for three blocs, scheduled for October 2009.

The oil companies, namely Addax Petroleum, Andarko, Chevron-Texaco and Sinopec hold exploration concession on the four blocs in the area, following the signing of production sharing contracts with the Joint Ministerial Council, the decision-making body that includes four ministers from each country.

Signed in February 2001, the joint exploration treaty states that Nigeria receives 60 percent of revenues while 40 percent goes to Sao Tome. (macauhub)