Commercial value of hydrocarbons found in the Nigeria/Sao Tome joint area is still unknown

22 August 2012

The companies that are prospecting for oil in the Nigeria/Sao Tome and Principe joint development zone (JDZ) have yet to announce if the hydrocarbons found there have a commercial value, said Olegário Tiny, the executive director of non-oil resources of the Joint Authority said.

“At all the wells so far drilled in the Joint Zone hydrocarbons have been found – either gas or oil – but the current question is if these deposits do or do not have a commercial value,” Tiny told the Portuguese News Network.

Around a month ago, operations ended for test wells in Block 1 of the JDZ, in which French company Total is the main operator and the results confirmed previous findings.

“From the results obtained it was also concluded that it could be of interest to both sides to study the block in greater depth because existing potential points to the possibility of better results than those achieved so far,” he added.

The companies are working in several blocks but the biggest hopes are pinned on Block 1, also known as “Obô,” which is linked to another block on the Nigerian side – Block 246 – which is also being explored by Total.

The French oil company thus acquired the stake owned by US group Chevron in Block 1, in order to create synergies between the two blocks to achieve better results. (macauhub)