Sao Tome and Principe: Start of drilling for oil exploration by Addax delayed until the end of 2009

26 December 2008

Sao Tome, Sao Tome and Principe, 26 Dec – Swiss oil company Addax Petroleum announced it would begin drilling for oil in blocks 2, 3 and 4 of the joint development area (JDA) between Sao Tome and Principe and Nigeria.

Addax explained the delay, of about a year, by noting the stalemate in the results for prospecting block 1 of the JDA by Chevron and the abrupt fall in oil prices over the last few months on the international market.

Addax partners China’s Sinopec in the exploration of three oil blocks.

The two companies announced that they planned to invest US$73.8 million in oil prospecting in the JDA between Sao Tome and Principe and Nigeria.

Jeff Schrull, a representative of both companies recently said that prospecting work would take until 2013.

The joint exploration treaty signed between Sao Tome and Principe and Nigeria in February 2001, states that Nigeria receives 60 percent of revenues while 40 percent goes to Sao Tome. (macauhub)