US company Kosmos Energy has acquired the rights that US company ERHC Energy held in block 11 of the Exclusive Economic Zone of São Tomé and Príncipe, said Monday in São Tomé the executive director of the National Oil Agency.
In a statement signed by Director Orlando Sousa Pontes, the National Oil Agency said, “ERHC transferred to Kosmos Energy 100 percent of the rights, interests, responsibilities and obligations under the production sharing contract in Block 11 of the Exclusive Economic Zone of São Tome and Príncipe.”
The statement said that Kosmos Energy has become the operator of this block with an 85 percent stake while the National Oil Agency holds the remaining 15 percent on behalf of the São Tomé State.
Signed in July 2014, the production sharing contract exempted ERHC Energy from paying a signing bonus as it had the right of first refusal following an agreement with the São Tomé state in May 1997.
Block 11 of the Exclusive Economic Zone of São Tomé and Príncipe has an average depth of 2,900 metres and covers an area of 8,941 square kilometres, where ERHC Energy had announced it planned to spend about US$100 million on exploration activities.
Kosmos Energy is an independent oil and gas exploration and production company headquartered in Dallas, Texas.
In addition to the exclusive area, São Tomé and Príncipe also has a joint exploration zone with Nigeria, under the terms of a political treaty signed in February 2011 establishing 60 percent of revenue for Nigeria and 40 percent for São Tomé. (macauhub/ST)