São Tomé and Príncipe receives US$2 million for oil agreement with Galp and Kosmos

28 October 2015

São Tomé and Príncipe has raised US$2 million in oil bonuses as a result of an agreement signed with Portugal’s Galp Energia in partnership with US-based Kosmos Energy, aimed at offshore oil exploration in the archipelago, the National Oil Agency of São Tomé, ANP-STP announced Tuesday.

In a statement signed by director Orlando Sousa Pontes, the National Oil Agency noted that “Galp Energia and Kosmos Energy will pay a signing bonus in the amount of US$2 million, to be deposited in the National Oil Account within 30 days of the entry into force of the agreement signed Monday by the parties.”

The statement said that through this agreement, Galp Energia will be operator of block 6 of the exclusive economic zone of São Tomé with a 45 percent share, Kosmos Energy will have 45 percent and the National Oil Agency representing the government will hold the remaining 10 percent.

The contract between the National Oil Agency and Galp Energia, for a period of 28 years, establishes the initial eight years for research and the remaining 20 for development and production.

Block 6, located in the sea off ​​São Tomé and Príncipe has an average depth of 2,500 metres and covers an area of ​​5,024 square kilometres.

Galp Energia is a Portuguese company focused on oil and gas exploration and production, mainly in Brazil and Mozambique, and its partner, Kosmos Energy is an independent oil and gas exploration and production company headquartered in Dallas, Texas.

This agreement reached Monday by Galp Energia and the National Oil Agency is the result of the negotiations following the tender announced in January 2014 by the oil authorities of São Tomé and Príncipe. (macauhub/ST)