Sao Tome and Principe government may review oil exploration agreement with Nigeria

27 March 2014

The government of Sao Tome and Principe is available to review the agreement it has with Nigeria that set up joint oil exploration, Prime Minister Gabriel Costa said Wednesday in Sao Tome.

The Prime Minister noted that there were some difficulties in the process and said he would consider renegotiating the agreement to set up the Joint Development Authority, which will manage oil exploration, according to Portuguese news agency Lusa.

In response to a statement by Nigeria’s Foreign affairs Minister, Mohammed Nuruddeen, who said the agreement was frustrating and considered it might be dismantled, Costa said that he was available to discuss “whatever is necessary in relation to the agreement” with the Nigerian government.

The agreement was signed in February 2001 based on an optimistic forecast of US$100 million in revenues per year. According to the agreement any revenues would be split 60% for Nigeria and 40% for Sao Tome and Principe. (macauhub)