Sao Tome prime minister wants to boost joint oil exploration with Nigeria

16 September 2010

Sao Tome, Sao Tome and Principe, 16 Sept – Sao Tome and Principe plans to boost the process of joint oil exploration with Nigeria, the new Prime Minister of Sao Tome, Patrice Trovoada said Wednesday in Sao Tome.

The head of the Sao Tome government made the statements just before leaving for Abuja, the federal capital of Nigeria, where he is due to have talks with the Nigerian authorities on the oil exploration process in the joint zone.

Trovoada, who became prime minister following the legislative elections of August 1, said he wanted to discuss with Nigeria the need to reduce the expenditure of the Joint development Authority (JDA) estimated at around US$13 million per year.

Signed in February 2001, the joint exploration treaty sets out that Nigeria receives 60 percent of revenues while 40 percent goes to Sao Tome and Principe.

The Sao Tome oil mission to Nigeria is taking place a week after Trovoada extended the deadline for a further 60 days on the first auction of seven oil blocks located in the Sao Tome and Principe Exclusive Economic Zone (EEZ) by two months.

The auction, which was initially due to end on 15 September, will now be open until 15 November in order to allow a greater number of companies to take part. (macauhub)