Sao Tome and Principe nets US$2 million from oil contract signing bonus

17 October 2011

Sao Tome, Sao Tome and Principe, 17 Oct – Sao Tome and Principe has netted US$2 million from the signing bonus of a contract to share oil production with Nigerian company Oranto Petroleum, the National Oil Agency (ANP) said Friday in Sao Tome.

In a statement sent to Macauhub in Sao Tome, the chairman of ANP, Luís dos Prazeres, said that the production sharing contract was signed Thursday with the Nigerian company, which is the designated operator of block 3 of the Exclusive Economic Zone (EEZ) of Sao Tome and Principe.

The contract, which is valid for 28 years, outlines that the first eight years will be used for surveying and drawing up three-dimensional seismic surveys, test wells and other tests, for funding social projects as well as encouraging the involvement of local companies.

Last May, the Sao Tome and Principe government granted exploration rights for block 3 to Nigeria’s Oranto Petroleum following the first oil block auction for the Sao Tome EEZ.

As well as Oranto Petroleum, the first auction for the Sao Tome EEZ also involved Sao Tome company OG Engineering, British company Afex Global and Nigeria’s Ouvert Energy, which were not chosen.

The block granted to Oranto has an area of 4,228 square kilometres and is located in exploration zone A of the Sao Tome and Principe.

Oranto Petroleum is a Nigerian company that has been operating since 1991 and is actively involved in several oil blocks in the Gulf of Guinea and West Africa.

As well as its EEZ Sao Tome and Principe also has a joint oil exploration area with Nigeria, based on a contract signed in February, 2001. (macauhub)