Chevron and India’s ONGC interested in oil blocks in Sao Tome and Principe’s EEZ

20 April 2010

New York, United States, 20 April – US oil company Chevron Texaco and India’s Oil and Natural Gas Company (ONGC) are expected to take part in the auction of oil blocks in the exclusive economic zone of Sao tome and Principe, said the director of the west African archipelago’s Oil Agency.

Speaking to Portuguese news agency Lusa last week, Luís Prazeres said that the two oil companies were those that showed most interest at a meeting held in Houston, Texas last week, and had requested the technical specifications for the blocks that are up for auction.

The Houston event, which was organised by British consultancy PGS Marine, was attended by over 15 companies in the sector, including US company Conoco Philips and Scandinavian company Maersk.

The international auction of oil blocks was launched in London at the beginning of March, is open until 15 September and will be followed by an evaluation of the proposals, signing up of the companies and negotiation of the contracts with the companies.

The licensing process relates to seven of the 19 blocks identified in the archipelago’s EEZ, blocks 1,2,3 and 6 of Zone A and blocks 7, 8 and 13 of Zone B.

Initially the process was being followed by China’s Sinopec but, according to Prazeres, there has so far been no specific statement of interest.

The next public presentation of the auction is due to take place at an oil sector conference in June, in Ghana. (macauhub)