Sinopec to start prospecting in Nigeria-Sao Tome and Principe Joint Development Zone

23 June 2009

Lagos, Nigeria, 23 June – China Petrochemical and Chemical Corporation (Sinopec) plans to start drilling the first prospecting wells in the Nigeria-Sao Tome and Principe Joint Development Zone (JDZ) in July, according to financial news agency Bloomberg.

Citing staff from the JDZ who said the delay had been due to there being on available oil rigs for rental on the market, the agency said that Sinopec now planned to move on to prospecting in Block 2.

“The trans-oceanic deepwater rig SEDCO-702 is due to arrive at Block 2 around 1 July, and drilling should start immediately,” one of the officials said.

Both a staff member from Sinopec and JDZ staff declined to speculate ab

The Nigeria-Sao Tome and Principe JDZ was set up by the two countries in 2001, the respective treaty was defined and a polygon outlined covering around 36,000 square kilometres in which the two Exclusive Economic Zones overlap, creating a bi-national area for exploration of natural resources.

The treaty outlines that Nigeria will take a 60 percent share of revenues, Starting with the “sign up bonus” of blocks and the remaining 40 percent will go to Sao Tome and Principe, and total reserves are estimated at 12 billion barrels. (macauhub)