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Kobi, you have some good thoughts but I keep wondering if ERHC mgmt doesn't care about the shareholders because CEO Emeka Offor and his clan have accumulated over 51% of the outstanding shares. Thus, we, the minority shareholders, really have no power unless we all dump our shares. However, I doubt many long term holders like myself are going to do that.
Just a thought..........
ND9
Nigeria lures Asian buyers with oil drilling auctions
Published: Saturday, 20 May, 2006, 12:42 PM Doha Time
LAGOS: Nigeria opened an auction for oil drilling rights yesterday hoping to attract billions of dollars into infrastructure development from mostly Asian investors in a public sale that raised questions about transparency.
The government offered a total of 17 blocks, mostly in deep water areas near huge oil discoveries, to 10 companies and gave them all first right of refusal over at least one area each in return for commitments to invest more than $20bn.
Chinese and Indian companies dominated the bidders’ list, promising investments in oil refining, power generation and railways in the impoverished African oil giant.
But several unknown Nigerian companies were also set to receive major drilling rights and analysts questioned the transparency of the process, coming at a time of heightened political uncertainty with landmark elections due next year.
“In the same way that President Olusegun Obasanjo had a long hard look at the deals made at the tail end of the previous military administration, there is every reason to think that a new government next year would look at these if there is any controversy associated with this process,” said Anthony Goldman, an independent risk analyst.
Many of the blocks offered yesterday were unused portions of earlier licences which were relinquished by major oil companies, some of which have seen billion-barrel oil finds.
The first few results showed state-run China National Petroleum Corp walking away with four licences for a total of $16mn in signature bonuses. The Chinese government has committed to investing $2bn in Nigeria’s 110,000bpd refinery in the northern state of Kaduna.
India’s ONGC exercised its right of first refusal over a hotly contested block 209, near where ExxonMobil found the giant Erha oilfield, and matched a bid of $75mn.
ONGC in consortium with Mittal Steel has agreed to spend $6bn on building a new 180,000bpd refinery, 2,000mw of power generation, and a railway running East-West across Nigeria. – Reuters
Nigeria sees $20 bln investment from 17 oil blocks
Fri May 19, 2006 9:08 AM GMT
By Tom Ashby
LAGOS (Reuters) - Nigeria will auction 17 oil drilling licensing areas to buyers including Indian, Chinese and British companies in return for about $20 billion investment in refining, power and other projects, authorities said on Thursday.
The auction due to take place on Friday is unlikely to see much competitive bidding because the 10 qualified bidders have been given the right of first refusal over all 17 blocks, with a reserve price.
But industry interest is high because most of the licences are in deep water zones where billion-barrel discoveries have been made. Major oil companies were forced to relinquish many of them under the terms of earlier licensing rounds.
"We have said that only those who commit to build refineries in Nigeria to stop us importing products would be qualified," Tony Chukwueke, director of the Department of Petroleum Resources, told Reuters, adding that he expected $500 million in bids to secure the licenses, on top of promised investments.
The government is also using the licensing to address civil unrest in the Niger Delta by reserving one block for a collection of "youth groups" -- a local term for militants -- who would reinvest any of their profits into local development.
"That is resource control," said Chukwueke, referring to the assignment of onshore block 233 to a new company called Niger Delta United Oil Co. in the states of Bayelsa and Delta.
Militant attacks on the oil industry in Delta state have cut Nigerian oil output by a quarter.
"It is targeted at youth emancipation. The state governments have a share but the controlling powers will be all these youths who create trouble, we are seeing if we can get them together."
"They will be asset owners and they have to bring in a reputable operator," he added.
INDIA, CHINA
An Indian consortium made up of ONGC and Mittal Steel will have first right of refusal over three blocks, including part of block 209 where ExxonMobil discovered the giant Erha field.
In return, the consortium will commit to invest $6 billion in a new 180,000 barrel per day refinery, 2,000 megawatts of power and an east-west railway, Chukwueke said.
Global Steel, also of India, has rights over block 281 in return for commitments to build a $1.8 billion compressed natural gas plant.
State-run China National Petroleum Corp has rights over four blocks in return for $2 billion investment in reconditioning the Kaduna refinery.
Nigerian Agip Oil Co, a unit of Italy's ENI, has kept rights to block 211, which it originally won a decade ago, in return for commitments to invest $600 million in power.
ONGC Videsh has part of block 218, where Statoil has discovered both oil and gas, as compensation for its loss of a share in two highly prospective blocks it lost due to a dispute with Korea in a licensing round last year.
BG Group and Sahara Energy have rights over the relinquished section of block 213, where Chevron found part of the giant Bonga southwest oilfield, in return for $2.5 billion invested in gas gathering.
Taiwanese CPC has rights over part of block 219, where Shell discovered the Bolia oilfield, in return for a power plant.
Chukwueke said he was hoping to avoid a repeat of last year's licensing round, where many bidders failed to pay up, by demanding a 25 percent down payment.
© Reuters 2006. All Rights Reserved.
Nigeria sees $20 bln investment from 17 oil blocks
Fri May 19, 2006 9:08 AM GMT
By Tom Ashby
LAGOS (Reuters) - Nigeria will auction 17 oil drilling licensing areas to buyers including Indian, Chinese and British companies in return for about $20 billion investment in refining, power and other projects, authorities said on Thursday.
The auction due to take place on Friday is unlikely to see much competitive bidding because the 10 qualified bidders have been given the right of first refusal over all 17 blocks, with a reserve price.
But industry interest is high because most of the licences are in deep water zones where billion-barrel discoveries have been made. Major oil companies were forced to relinquish many of them under the terms of earlier licensing rounds.
"We have said that only those who commit to build refineries in Nigeria to stop us importing products would be qualified," Tony Chukwueke, director of the Department of Petroleum Resources, told Reuters, adding that he expected $500 million in bids to secure the licenses, on top of promised investments.
The government is also using the licensing to address civil unrest in the Niger Delta by reserving one block for a collection of "youth groups" -- a local term for militants -- who would reinvest any of their profits into local development.
"That is resource control," said Chukwueke, referring to the assignment of onshore block 233 to a new company called Niger Delta United Oil Co. in the states of Bayelsa and Delta.
Militant attacks on the oil industry in Delta state have cut Nigerian oil output by a quarter.
"It is targeted at youth emancipation. The state governments have a share but the controlling powers will be all these youths who create trouble, we are seeing if we can get them together."
"They will be asset owners and they have to bring in a reputable operator," he added.
INDIA, CHINA
An Indian consortium made up of ONGC and Mittal Steel will have first right of refusal over three blocks, including part of block 209 where ExxonMobil discovered the giant Erha field.
In return, the consortium will commit to invest $6 billion in a new 180,000 barrel per day refinery, 2,000 megawatts of power and an east-west railway, Chukwueke said.
Global Steel, also of India, has rights over block 281 in return for commitments to build a $1.8 billion compressed natural gas plant.
State-run China National Petroleum Corp has rights over four blocks in return for $2 billion investment in reconditioning the Kaduna refinery.
Nigerian Agip Oil Co, a unit of Italy's ENI, has kept rights to block 211, which it originally won a decade ago, in return for commitments to invest $600 million in power.
ONGC Videsh has part of block 218, where Statoil has discovered both oil and gas, as compensation for its loss of a share in two highly prospective blocks it lost due to a dispute with Korea in a licensing round last year.
BG Group and Sahara Energy have rights over the relinquished section of block 213, where Chevron found part of the giant Bonga southwest oilfield, in return for $2.5 billion invested in gas gathering.
Taiwanese CPC has rights over part of block 219, where Shell discovered the Bolia oilfield, in return for a power plant.
Chukwueke said he was hoping to avoid a repeat of last year's licensing round, where many bidders failed to pay up, by demanding a 25 percent down payment.
© Reuters 2006. All Rights Reserved.
Balance, no apology necessary. I was just trying to say that now, the Chinese will have to find oil elsewhere. That might be a good thing for us (ERHC).
thanks,
ND9
Liverpool company buys major African free port May 17 2006
By Sophie Freeman Business Staff, Daily Post
ONE of the main free ports in West Africa has been bought by Liverpool-based Lonrho Africa.
Luba Freeport, in Equatorial Guinea, acts as a major centre for the burgeoning oil and gas industries in the Gulf of Guinea.
Lonrho Africa, which is based at Castle Street in the city's business district, said the deal was "in line with the company's strategy of re-establishing itself as a major investor on the African continent".
The firm, which until recently had several business interests in Africa, has mainly concentrated on hotels on the continent, particularly in Kenya.
David Lenegas, chief executive and chairman of Lonhro Africa, said: "Luba Freeport is being established as a 'one stop shop' for oil logistics in one of the fastest-growing oil producing areas in the world.
"As development of the oil industry continues throughout the Gulf of Guinea and West Africa, more and more companies will be on the lookout for logistical support for their oil industry requirements.
"Luba Freeport will be providing a substantial boost to the local economies whilst at the same time offering a modern world-class facility for its clients.
"This investment in the Luba Freeport development project is an exciting opportunity for Lonhro Africa and is in line with the company's strategy of re-establishing itself as a major investor on the African continent."
Lonhro has acquired 63% of the port's issued share capital for $2m. The balance of the share capital will be held by the Equatorial Guinea government.
As part of the deal, Lonrho will also acquire secured debt of around $11.3m from a major client of Luba Freeport.
In a letter sent to Lonhro, the Equatorial Guinea Prime Minister gave an assurance of the government's continuing support to the company and said the tax-free port was of "vital importance".
Lonrho Africa will assume control of the Luba Freeport board and David Lenigas becomes its chairman.
Lonrho was advised on the deal by Liverpool-based lawyer David Cadwallader.
Sinopec bidding for $3B Russian asset -
Sinopec, Rosneft join forces for TNK-BP unit-sources
Fri May 19, 2006 6:37 AM ET
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By Charlie Zhu and Chen Aizhu
SINGAPORE/BEIJING, May 19 (Reuters) - Sinopec Group has teamed up with Russian state oil firm Rosneft in a joint multi-billion dollar bid for TNK-BP's (TNBPI.RTS: Quote, Profile, Research) oil unit Udmurtneft, raising the Chinese firm's chances of winning the asset, people familiar with the bid said on Friday.
Three industry sources told Reuters that China's number two oil group, whose full name is China Petrochemical Corp., had already filed a joint bid with Rosneft in the face of strong competition from other bidders.
"We are fairly confident. To get things done in Russia you need a heavyweight local partner," said a Beijing-based industry official familiar with the matter.
Sinopec's bid for oil producer Udmurtneft (UDMN.RTS: Quote, Profile, Research), valued by some at around $3 billion, marks another major attempt by oil-thirsty China to get into Russia's vast oil and gas sector after a string of failures.
Sinopec's partnership with Rosneft for the asset would mean the pair would have a much higher likelihood of winning the auction than Sinopec would on its own, although the result remains uncertain, sources said.
Russia's Interfax news agency reported earlier this month that TNK-BP, which is half-owned by oil major BP (BP.L: Quote, Profile, Research), had attracted four binding bids, including Sinopec, Hungary's MOL (MOLB.BU: Quote, Profile, Research), Russia's gas monopoly Gazprom's (GAZPq.L: Quote, Profile, Research) oil unit Sibneft and India's Oil and Natural Gas Corp. (ONGC) (ONGC.BO: Quote, Profile, Research).
India's ONGC is bidding in alliance with Russian mid-size gas producer Itera.
Sources close to the situation told Reuters that Sibneft appeared to be the most formidable contender because of the political clout of its parent company.
Gazprom has already suggested that TNK-BP could give it Udmurtneft in order to smooth the path of other deals.
China National Petroleum Corp. (CNPC), the country's dominant oil and gas producer, abandoned its own plan to find a Russian bid partner for Udmurtneft earlier this year and expects Russian companies to win it.
The Beijing-based source said he expected TNK-BP to pick the winning bidder within several weeks.
Udmurtneft, which started operations in 1969, produces 120,000 barrels of oil per day and has reserves equivalent to around 1 billion barrels but it is located far from TNK-BP's core West Siberian field.
Deutsche Bank (DBKGn.DE: Quote, Profile, Research) and UBS (UBSN.VX: Quote, Profile, Research) are running the Udmurtneft auction.
© Reuters 2006. All Rights Reserved.
Balance, "as we lose access elsewhere"....
I'm going to assume that when you said "we", you meant the United States. Not only did we lose out but the Chinese had a big stake in Ecuador per your article and a similiar one I found (I post a piece below).
thanks,
ND9
CALGARY, Alberta, May 19 (Reuters) - EnCana Corp . may have to refund up to 20 percent of the $1.42 billion a Chinese joint venture paid for its Ecuador holdings after the government of the South American country seized some of the properties, EnCana said on Friday.
Calgary-based EnCana, Canada's biggest petroleum explorer, said Andes Petroleum Co. could be able to claim up to $284 million. Andes is led by PetroChina Co. parent CNPC.
Analysis: U.S. eyes the promise of Libya's oil
By Jason Motlagh
UPI Correspondent
Published May 18, 2006
WASHINGTON -- Washington's decision to lift all remaining sanctions and normalize relations with Libya should boost the Saharan nation's capacity to produce crude oil but will have a minimal effect on short-term U.S. energy demands, experts say.
U.S. Secretary of State Condoleezza Rice's Monday announcement now permits Libya access to new technologies to expand production capacity. American companies that had been banned from working in the country until two years ago are vying for drilling and exploration contracts, though an overnight windfall is not expected.
"Libya for several years has sought new investment to facilitate greater production but it will take at least several years to bring the fruit to market," Jerry Taylor, an energy specialist at the libertarian CATO Institute told United Press International.
Outdated technologies, coupled with OPEC production constraints, are responsible for Libya's diminished output over the past two and a half decades, Taylor said.
A glut of oil on the market until recently compelled the 10-member Organization of Petroleum Exporting Countries to keep Libyan output down, he said, but as global insecurities have pushed oil prices to around $70 a barrel, "the idea is to produce as much oil as possible."
The United States ended a broad trade embargo and restored low-key diplomatic ties with Libya in 2004 after Tripoli pledged not to pursue weapons of mass destruction. The latest development scraps a law mandating U.S. companies secure a license from the Treasury Department to do business with Tripoli.
Libya produces about 1.6 million barrels of crude oil per day and has not pumped above 2 million bpd since the 1979 energy crisis. But the government of long-time pariah Moammar Gadhafi has set a target output of 2 million bpd by 2008 and more than 3 million bpd in 2015.
David Goldwyn, executive director of the U.S.-Libya Business Association, called the benchmark "very ambitious" but feasible within a few extra years now that "all political impediments have been removed."
Gadhafi seeks about $30 billion in foreign investment to advance his desert nation to the booming production levels of the 1970s.
According to the U.S. Energy Information Administration, enhanced recovery technologies and new drilling techniques should ramp up production capacity at major oil fields, including Libya's largest, El-Bouri, which produces some 60,000 bpd, or half its 1995 output.
Despite heavy competition from European firms, a handful of U.S. oil companies are competing for contracts to drill and provide production improving technologies. They include ConocoPhillips, Marathon Oil Corp., and Amerada Hess Corp.
Libya's reliability also remains a concern for some observers.
"Although U.S. oil interests probably welcome the developments in Libya, betting on stability has been problematic of late," Taylor said, citing Venezuela and Colombia as examples where formerly steady supply lines have been rattled by state and insurgent machinations.
Tripoli's removal from the U.S. State Department list of state sponsors of terrorism comes nearly two decades after it was implicated in the 1988 bombing of a Pan Am flight over Lockerbie, Scotland that killed 270 people.
Still, surging energy demands in Asia and volatile climates in the Middle East and Latin America have prompted the Bush administration to take a long view, designating African oil a "strategic national interest." U.S. energy officials hope the Gulf of Guinea region, anchored by Nigeria, will meet a quarter of energy demands by 2010, and American companies are prowling the continent for new prospects.
Libya is an ideal supplier for its light sweet crude, which is easily refined into gasoline, accessibility to U.S. tankers and safe distance from Middle East turmoil.
Experts say the promise of undiscovered reserves that far exceed Libya's proven 39 billion barrels hold the chief appeal to foreign companies jockeying for exploration contracts.
Goldwyn said Libya is vastly "underexplored and underdeveloped," pointing out that its proven reserves alone are already equal to those of heavyweight suppliers Nigeria and Kazakhstan. Less than half of the country's land mass has been surveyed for oil. Libya, for its part, is partial to U.S. companies for their reputation for infrastructural development and training of indigenous personnel, according to Goldwyn.
In January, U.S.-based Occidental, ChevronTexaco and Amerada Hess were awarded exploration contracts, along with companies from Australia, Algeria, Brazil, India and Indonesia.
"The West's ability to extract oil is light years beyond the Middle East," Taylor said. "Libya is probably capable of doing a lot more."
XOM Nigeria workers threaten to go on strike...
Article focus not on this subject but if you go down to middle of article, that's what it says... ND9
********************************************************
Nigeria: Exxon Mobil Strikes Oil Off Nigeria
This Day (Lagos)
May 18, 2006
Posted to the web May 18, 2006
Samuel Famakinwa With Agency Reports
Lagos
ExxonMobil's subsidiary, Esso Exploration and Production Nigeria Deepwater West, Ltd (Esso), yesterday announced it has drilled an oil discovery in Oil Prospecting Licence (OPL) 214, approximately 70 miles (113 kilometers) offshore Nigeria.
The Uge-1 discovery well was drilled in 4,144 feet (1,263 meters) of water to a total depth of 16,831 feet (5,130 meters) and encountered more than 300 net feet (100 meters) of oil.
The Uge-1 represents the first discovery on the OPL 214 licence and the structure is located approximately 90 miles (145 km) south-southeast of the Erha deepwater development.
The company said studies and data analyses are under way to fully evaluate the discovery and development options for the Uge well, which was drilled by Trans ocean's drill ship Deepwater Pathfinder.
Esso is the operator of OPL 214 with a 20 per cent working interest while other working-interest owners are Chevron Nigeria Deepwater B Limited at 20 per cent, Phillips Deepwater Expl-ration (Nigeria) Limited (a subsidiary of Conoc-oPhillips) at 20 per cent and Oxy Nigeria Exploration and Production Limited (a subsidiary of Occidental Petr-oleum Corporation) at 20 per cent.
Others are Nigerian Petroleum Development Company (NNPC), at 15 per cent, Sasol Exploration and Production Nigeria Limited at five per cent. NNPC is the concessionaire.
Generally, a working interest entitles the owner to a share of the oil revenue from the site in exchange for picking up the costs of exploration, development and operation.
ExxonMobil is a leader in the discovery and development of deepwater hydrocarbon resources in West Africa, where it has interests in 17 blocks totaling more than 10 million gross acres.
The company has a leading position in nearly all the major exploration and production areas in the world and the industry's strongest portfolio of proprietary geo-science and engineering technology.
Meanwhile, ExxonMobil's senior employees in Nigeria have threatened to go on strike unless the management agrees to their demand for a pay rise.
"We gave the management a seven-day notice with effect from last Friday (May 12) to review our remuneration or they will be faced with an industrial action that will paralyse the company's operations," the Petroleum and Gas Senior Staff Association of Nigeria (PENGASSAN) said.
A spokesman for the company confirmed the strike warning and said ExxonMobil was in talks with the workers to avert industrial action. "There is nothing to worry about. The company is negotiating with the union to resolve the matter," Paul Arinze said.
ExxonMobil is the second largest oil operator in Nigeria after Shell and it exports around 650,000 barrels per day of the country's overall production of 2.5 million barrels.
The strike threat risks further unnerving the world energy market, which is already jittery about the international crisis over Iran's controversial nuclear programme and unrest in the Niger Delta.
Nigeria's current oil production rate is 20 per cent below normal due to the unrest in the Delta region.
Over the past three months, militants have carried out series of attacks on Niger Delta oil facilities, forcing foreign multinationals to cut exports from Nigeria but ExxonMobil has not been directly affected by the crisis.
Africans Should Sell Oil to China
Luanda, May 18 (Prensa Latina) African Development Bank president Donald Kaberuka (Rwanda) asked African countries to sell their oil to China under favorable conditions Thursday.
Going to Ougadougu, capital of Burkina Faso, where the ADB annual meeting will take place starting Friday, Kaberuka said China is a nation that has kept a positive attitude and has cooperated with Africa in the last years.
ADB is convinced that the perspectives for an economic exchange each time stronger between Africa and China are possible in a near future, he said.
Kaberuka reminded the main idea for African oil-producing countries is using fuel for the welfare of their populations, and for their economic development.
hr/tac/rcg
African Development Bank to meet in China in 2007
18 May 2006 20:41:20 GMT
Source: Reuters
OUAGADOUGOU, May 18 (Reuters) - The African Development Bank agreed on Thursday to hold its 2007 annual meeting in Shanghai, reflecting stronger economic ties with China which buys a growing share of Africa's commodities output.
China is an increasingly important customer for oil, metals and other raw materials produced by the African continent as the world's most populous economy expands rapidly.
"Enhancing solidarity and cooperation with African countries has always been a priority of China's foreign policy," Jin Qi, director-general of China's central bank, said in a speech accepting China's new presidency of the bank's board of governors.
At the conclusion of its annual meeting in Burkina Faso on Thursday, the bank's governors chose Shanghai as the venue for the bank's 2007 meetings. Annual meetings have periodically been held outside the continent in the past.
"China is a member of the bank and China has the right, like any other member of the bank, to invite the bank to hold its assemblies. Economic ties between Africa and China are growing," out-going President Donald Kaberuka told a news conference.
Chinese, and to a lesser extent Indian, demand for African exports like oil, copper, aluminium and other materials have driven commoditis markets towards record highs, bringing an unexpected windfall to some African countries.
But some Western critics say Beijing's growing influence through allocation of trade and aid is undermining efforts to promote human rights, democracy and good governance in a continent plagued by corruption and war.
Chevron finds more oil off Nigeria
Posted Thu, 18 May 2006
Nigeria
Lagos - US energy group Chevron reported on Wednesday an exploration success at a new oilfield off Nigeria to increase exports from Africa's biggest crude producer.
"Chevron Nigeria Deepwater B Limited and its partners have drilled the first oil discovery in Oil Prospecting License (OPL) 214, approximately 113km offshore Nigeria," the company said.
"The Uge-1 discovery well was drilled in 1 263m of water to a total depth of 5 130m and encountered more than 100m of oil," it said.
Chevron International Exploration and Production President John Watson welcomed the discovery.
"The discovery is a further demonstration of how we are achieving superior success from a focused and high-impact exploration programme," he said.
Chevron is a major oil operator in Nigeria, accounting for around one-third of the country's daily exports of 2.5 million barrels.
Since January, attacks by separatist militants on rigs and pipelines in the Niger Delta swamps have cut production by 20 percent. Nigeria, however, hopes to boost output to four million barrels in the next few years by developing new oilfields in the Gulf of Guinea. -AFP
Meeting between Chinese and Portuguese-speaking ministers due in September in Macau [ 2006-05-18 ]
Macau, China, 18 May - Macau will host on September 25 and 26 the second ministerial meeting of the Forum for Economic and Trade Cooperation between China and Portuguese-speaking Countries, officials said Wednesday.
According to a statement from the Forum’s permanent office, the ministerial meeting will be attended by members of China’s Ministry of Trade, ministers and other authorities from the trade and economy areas of the Portuguese-speaking countries, as well as representatives from several international organizations, institutions for promoting trade and business people from participating countries.
As well as Macau and the Chinese mainland the Forum will be attended by representatives from Portugal, Brazil, Angola, Mozambique, Guinea Bissau, Cape Verde and East Timor.
Sao Tome and Principe, despite its diplomatic relations with Taiwan to the exclusion of Beijing, was invited to the first Forum in 2003 but did not attend and has not taken part in activities over the last three years.
The boost to economic and trade cooperation between China and the Portuguese-speaking countries has had results in terms of trade as results published by the Forum show.
According to official figures, in 2005 the value of bilateral trade between China and Portuguese-speaking countries totaled US$23.19 billion, or an increase of 26.9 percent against 2004 and for the first time passing the US$20 billion mark.
China sold goods to the value of US$6.22 billion to Portuguese-speaking countries and bought goods totaling US$16.97 billion.
At the end of 2005, the accumulated value of investment by China in Portuguese-speaking countries had reached US$95.15 million while contracted and actual investments by Brazil and Portugal in China respectively totaled US$544 million and US$229 million. (macauhub)
New Addax website w/ picture of ERHE staff.....
1.) New website: http://www.addaxpetroleum.com./home
2.) Picture of Addax and ERHE staff: http://www.addaxpetroleum.com./press_room/latest_events
Chevron finds crude oil in Nigeria
Posted on Wed, May. 17, 2006
EAST BAY BIZ BUZZ
San Ramon-based Chevron Corp. (CVX) said its subsidiary and partners have discovered crude oil in an exploration block 70 miles off Nigeria's coast. Chevron Nigeria Deepwater B Ltd. and its partners found more than 300 net feet of oil after drilling a well in 4,144 feet of water to a total depth of 16,831 feet.
Partners include subsidiaries of Exxon Mobil Corp. through its Esso subsidiary, ConocoPhillips, Occidental Petroleum Corp. and Nigeria Petroleum Development Co.
Sao Tome and Principe government launches measures to contain public spending
May 16, 2006, 18 hours, 8 minutes and 57 seconds ago.
By ANDnetwork .com
The government of Sao Tome and Principe has launched a set of measures to reduce public spending and boost the general state budget (OGE), due to the archipelago’s fragile financial state.
The announcement was made Friday in a government statement read out by Justice Minister, Justino Veigas, after a Cabinet Meeting headed by President Fradique de Menezes.
The measures taken including suspending the project for refurbishment of the country's central bank, which had been valued at some US$8 million.
“The cabinet suspended the work in order to look at it more closely as the figures projected are not compatible with containment efforts, which is required by the whole country,” said the government spokesman.
Veigas added that the “entire process” of selling State vehicles over the last six months had been suspended in order to revalue the acquisition processes and bring more funds to the state's coffers, and investigate claims that there have been illegal sales of state vehicles.
Without giving figures, Veigas said that a proposal put forward by the Minister for Planning and Finance to boost the state budget by US$15 million had been approved. The extra funds are from the sale of oil blocs in the joint exploration area with Nigeria, he said.
Local and regional elections are scheduled for July 9 and presidential elections are due on July 30, according to Sao Tome’s electoral calendar.
Amongst priority actions, as well as issues relating to the “illegal” occupation of apartments and boosting measures against the resurgence of a cholera epidemic, the government of Prime Minister Tomé Vera Cruz has scheduled a “special” cabinet meeting to discuss the country’s power supply “problem.”
The government has also said it is urgent to finish work on a new public market in the Sao Tome capital, valued at US$2 million, invested by the Taiwanese authorities as part of a bilateral cooperation agreement.
This was the first cabinet meeting headed by President Menezes with members of the new government which took office less than three weeks ago.
Source : Macauhub
Oil firms 'must give more'
14/05/2006 16:25 PM
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Malabo - Oil companies operating in the west African state of Equatorial Guinea, one of the continent's biggest oil producers, must give the state more of their increased revenue from higher prices, the prime minister was quoted Saturday as saying.
"The increase of a barrel of oil on world markets has generated major profits for the world's main oil companies generally and those operating in Equatorial Guinea in particular," said Miguel Abia Biteo Borico, quoted by national radio.
The increase in crude prices must "mean sharing with the state the huge profits currently enjoyed by these companies," he said, addressing representatives of major oil companies here on Friday.
Abia Biteo gave his minister of mines and energy and the oil companies until the end of June to define and set up "mechanisms to reach accord on allocating sums to the state of Equatorial Guinea."
Equatorial Guinea is the third largest oil producer of sub-Saharan Africa after Nigeria and Angola. Major companies operating here include ExxonMobil, Marathon Oil, Chevron-Texaco, Amerada Hess-Triton and Vanco.
Petrodollars represent 90% of state budget resources and have created two-digit economic growth since the 1990s, but the population has seen little of the benefits of this, according to an annual report by the United Nations Development Programme.
Bolivia announced this month it was nationalising its energy industry, a move that has worried foreign energy producers in the country.
Left-wing Bolivian President Evo Morales shocked an EU-Latin American summit in Vienna on Thursday by saying his government would not compensate foreign firms for assets they might lose after Bolivia nationalised oil and gas resources.
World oil prices fell on Friday after the International Energy Agency lowered its forecast for global oil demand this year and foreign hostages were freed in major crude producer Nigeria.
New York's main contract, light sweet crude for delivery in June, dropped $1.42 to $72.04 per barrel in closing deals.
In London, Brent North Sea crude for June delivery lost $1.11 to close at $72.32.
US Military Plans Joint Exercise in West Africa
By Gilbert da Costa
Abuja
13 May 2006
Senior military officers from the United States and officials of the Economic Community of West African States (ECOWAS) have been meeting in Abuja, Nigeria to draw up details for a joint military exercise, called a multilateral command post exercise.
The goal of the command post exercise is to enhance the peacekeeping and intervention capacity of the standby military force in West Africa, one of the world's poorest and most unstable regions.
The United States is hoping to improve the operational efficiency and competence of the nations in West Africa so they can respond more quickly to situations that require military intervention.
One of the U.S. officials at the Abuja meeting, Scott Fisher, who is a political-military adviser at the State Department, provides an insight into the training program, scheduled for Accra, Ghana.
"It will involve a subordinate battalion responding to a force commander and his staff and they will be in receipt of a mandate, in this case from ECOWAS, that would say we have this sort of issue here and that will be the scenario and we provide you the military, the mandate from the political masters in West Africa to take this course of action," he said.
The U.S. military curently enjoys cooperation with a number of countries in West Africa, and Africa's growing oil industry, concentrated in West Africa's Gulf of Guinea, has also led to an increased U.S. military presence in the region.
Fisher says the U.S. intentions go beyond safeguarding its energy interests in the region.
"We understand in the United States, and I think everybody in Africa understands, that in the absence of security, you cannot get the other benefits that you seek: economic development, good governance and better health situation," he added. "All of that is dependent upon the security situation. So there is really a longer term issue that is not only focused on the Gulf of Guinea and energy. This is focused on how does West Africa become a partner in a different number of ways with the world community."
The Economic Community of West African States created a standby military force in 2004 to intervene in any situation that could threaten the security of the region. However, because of a lack of resources, the force is yet to become operational.
China’s April oil import drop stirs demand concerns
Posted online: Saturday, May 13, 2006 at 0037 hours IST
BEIJING, MAY 12: China’s imports of crude oil slipped for the first time this year in April, official data showed on Friday, with a 1.8 percent fall from a year earlier that may dent hopes of firmer demand growth.
Refinery losses and anticipation of government economic tightening were likely partly responsible for the turnaround, analysts said, but imports in April 2005 hit a then-record near 3.0 million barrels per day (bpd), giving a high base for comparison.
In April 2006 China received 12.03 million tonnes of crude, or 2.93 million bpd, the General Administration of Customs said on its website. This was slightly below 3.0 million bpd hit in March, but above February levels. It did not give a percentage change for the month alone, which was calculated from the accumulated figures. Beijing keeps tight control over prices of gasoline and diesel, worried that costlier fuel could spark inflation or unrest.
—Reuters
China looks to S. America for oil imports
Fu Chenghao
2006-05-13
CHINA'S crude oil import sources are becoming more diversified, with an increasing amount from Venezuela and other South American countries to ensure its energy security.
Gordon Kwan, head of China oil and gas research at CLSA Ltd, said yesterday that Venezuela could account for over 10 percent of China's total imports by the end of this year. The Middle East now accounts for half of China's oil imports.
According to data from the General Administration of Customs released yesterday, China's crude oil imports rose 17.3 percent to 49.15 million tons in the first four months of this year.
The country imported 12.03 million tons of crude oil in April.
The customs didn't provide the breakdown of import origin, however.
"China is aiming to boost Venezuelan oil imports 20-fold to 300,000 barrels per day, from 12,000 bpd back in 2004," Kwan said in a research note. "This appears to be a win-win for China's refiners like Sinopec, PetroChina, and Venezuela's state-owned oil company PDVSA."
While China diversifies its crude oil import sources, Venezuela can also vary its oil export customer base, half of which are geared to the United States now.
On Wednesday, news media reported PDVSA, or Petroleos de Venezuela SA, South America's largest oil company, has placed a US$1.3 billion order for 18 vessels with two Chinese shipbuilders, China State Shipbuilding Corp and China Shipbuilding Industry Corp, to help boost shipments to the growing Asian markets.
"Chinese companies are joining in more oil and gas projects in Peru, Venezuela and Ecuador," said Deng Zhenghong, a scholar at Sinopec.
Maybe EO and Brandhuber don't care what we think. Maybe they have a plan to sell only their Chrome Oil shares to some other company. They make lots of money and we, the common shareholder, get nothing.
That's the scenario that worries me most. What is to prevent that scenario from playing out?
thanks,
ND9
Sao Tome government moves ahead with new port and airport, despite financial difficulties [ 2006-05-11 ]
Sao Tome, Sao Tome and Principe, 11 May – The new government of Sao tome and Principe has said it will go ahead with the construction of a new deepwater port on the archipelago and the new airport, despite acknowledging that the country’s current financial situation is a difficult one.
The minister of Public Works, Delfim Neves, told Sao Tome daily newspaper Tela Non that the government was concluding the project for the deepwater port, which is expected to be the biggest public work ever carried out on the archipelago, to begin, “within a few weeks " the international promotion of the port, in search of investors.
After the promotion, he said, the government will go ahead with an international public tender for the work, which has an estimated cost of US$76 million.
Neves also said the government would launch an international promotion campaign for the other large public work that the archipelago has in mind, Sao Tome’s new international airport.
Within a month, he said, the refurbishment work on the road linking Sao Tome and the Cruzeiro area, the dilapidated state of which has led to electoral boycotts by the local population.
Neves acknowledged that his Ministry’s situation was “difficult” and that the public works and infrastructure sector “is completely unorganized” and “requires a lot of courage and political will.”
Amongst the initiatives underway, using donors such as Libya, which was visited by Sao Tome’s president last week, is a request made to Angola to extend the deadline for payment of a US$5 million debt, which should be paid off in the next few months. (macauhub)
Sao Tome’s inflation exceeds projection for whole year [ 2006-05-12 ]
Sao Tome, Sao Tome and Principe, 12 May – Sao Tome’s inflation rate has already exceeded the 13 percent mark, which was the government projection for the whole of 2006, the country’s Finance Minister, Maria Tebus Torres has said.
The country’s elections, Torres told local daily Tela Non, made “people stop working during the campaign,” leading to “a lack of some products,” and thus, “the little that there was increased in price.”
To make the situation worse, she added, during the electoral period there was an abnormal entry into circulation of US dollars, used in the campaigns of several political parties.
"The previous Government agreed a year-end inflation rate of 13 percent with the International Monetary Fund (IMF) (…) and at this moment we stand at more than 13 percent,” said the deputy prime minister and minister for planning and finance..
The situation may worsen over the next few months as local, regional and presidential elections are due to be held.
Meanwhile, Torres said, the government had received a fuel price increase proposal from state fuel company Empresa Nacional de Combustíveis (ENCO), which she called “drastic.”
The proposal will now be negotiated with ENCO in order, Torres said, “to make it as gentle as possible on the population.”
Wednesday Torres said that the archipelago’s debt pardon from the World Bank and the IMF was in doubt due to the “careless” financial management of the previous government.
The pardon was expected to take effect next month when Sao tome entered the final phase of the Highly Indebted Poor Countries (HIPC) program, but so far this objective "is 99 percent spoiled,” she said. (macauhub)
WFP offers Sao Tome 5 mln dollars for food programs
UPDATED: 08:41, May 12, 2006
World Food Program (WFP) of the United Nations plans to spend some 5 million U.S. dollars over the next five years to aid Sao Tome and Principe through meal programs in the islands' schools and health clinics.
According to a report reaching here on Thursday, the WFP representative in Sao Tome Nicaise Kponou announced the new initiative after a meeting with Prime Minister Tome Vera Cruz.
During the past five years, the WFP had spent some 4 million U.S. dollars in food programs for Sao Tome and Principe children under the age of five and pregnant women.
In another development, Public Works Minister Delfim Neves said the government was considering opening the archipelago's post office to private capital.
The postal system, which has 50 employees, was "technically bankrupt," Neves said, adding that the government was thinking of bringing in private sector partners.
Source: Xinhua
World Bank lifts China growth forecast to 9.5%
Thursday, May 11, 2006
2006/5/11
BEIJING, AFP
The World Bank on Wednesday upgraded its 2006 growth forecast for China to 9.5 percent as it cautioned that more measures needed to be taken to cool and rebalance the economy.
In its quarterly report on China, the bank said it had revised up its 2006 forecast from 9.2 percent to 9.5 percent after faster-than-expected growth at the start of the year.
China's economy grew 10.2 percent in the first quarter, taking many analysts by surprise, after expanding 9.9 percent for all of 2005.
"Much of the growth surprise stemmed from stronger exports whereas domestic demand grew in line with expectations," the World Bank report said.
"Investment continued to power ahead, though, partly due to an uptick in credit growth, with more new lending going into real estate development."
The report said that inflation should remain "subdued" while the current account surplus may rise again this year.
With the economy continuing to expand at near double-digit pace, the World Bank warned China that a range of measures need to be taken to avoid overheating.
"More policy action is needed to keep credit and investment growth in check, mitigate external imbalances and to entrench the rebalancing of growth patterns," it said.
The bank also urged China to allow its currency to appreciate faster, saying a stronger yuan would help "reduce current account surpluses and rebalance growth towards consumption.
"A stronger real exchange rate would encourage investment in non-tradable sectors such as services rather than in tradables (manufacturing). "This would therefore contribute to the desired rebalancing of the economy and lower current account surpluses."
Despite enormous pressure from the United States to loosen controls on the yuan and allow it strengthen dramatically, China has held firm on its "gradualist" approach to currency reform. The United States has argued that the yuan is up to 40 percent undervalued, making Chinese exports cheaper on global markets.
The World Bank's chief economist for China, Bert Hofman, said a faster approach to yuan reform would also help offset foreign exchange inflows following China's 0.27 percentage point rise in the benchmark lending rate last month.
Aside from the yuan, the World Bank said China could take many other measures to ease its reliance on massive investment and rising exports.
"Increasing domestic consumption and reducing the saving-investment surplus can be achieved by shifting government spending from investment to health, education and the social safety net," Louis Kuijs, the main author of the report, said.
Kuijs also urged faster reforms in the financial sector and improving corporate governance.
The government has already taken some measures this year to prevent the economy from overheating, including the interest rate rise on April 27 that the central bank said was implemented to ensure "sustainable" economic growth.
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Nigeria: China to Build Free Trade Zone
Business in Africa (Johannesburg)
May 10, 2006
Posted to the web May 10, 2006
Lagos
China has plans to invest $267mn to establish a free trade zone in Lagos, said a Chinese official.
Chen Xiaoxing, head of a visiting Chinese delegation, said the Chinese government has approved plans to establish the Lekki Free Trade Zone (FTZ).
China has never build a FTZ outside of its territory.
The funds made avaialbe would be used to build power plants, roads and workshops to manufacture goods.
The first phase is expected to take two years to complete.
Chen said: "China will contribute its experience to develop Nigeria's economy.
"China has signed a $2.5mn soft loan agreement with Nigeria to help her develop her infrastructure."
China is often said to produce inferior goods, but Chen assured that "the goods that will be produced at the FTZ will be of international standard because the zone will be an international location for manufacturers who would be regulated by the International Standard Organisation's (ISO) rules and regulations".
Chen added that the FTZ would create about 3000 jobs during its first phase and would be inaugurated on Thursday.
Twenty Chinese businessmen, who have already shown interest, would be in attendance.
Chevron Insider Sales Lifted by Oil
By NICOLAS BRULLIARD
May 10, 2006; Page C10
Chevron Corp. Chairman and Chief Executive David J. O'Reilly and other company executives recently reported selling company shares valued at a combined $45.6 million as heady gas prices kept the stock near record highs.
Six Chevron executives, also including Vice Chairman Peter J. Robertson and Chief Financial Officer Stephen J. Crowe, exercised stock options and sold a total of 734,800 company shares last week, according to filings with the Securities and Exchange Commission.
The stock sales took place at a time when oil companies' profits and compensation have received increasing scrutiny, as lawmakers struggle to limit the impact of soaring gas prices on consumers.
Ben Silverman, research director at InsiderScore.com, said the stock sales appear to follow a typical pattern at Chevron, where insiders exercise options after several years and sell the acquired shares. He said the sales are to be expected, given the stock's recent run-up. "It's certainly not a surprising move to see executives in this sector booking some profits now," he said.
Mr. O'Reilly on Friday reported exercising 487,200 stock options, with exercise prices ranging from $39.56 to $44.94 a share, and selling the acquired shares for $30.3 million.
After paying almost $21 million to exercise the options, he was left with $9.3 million in proceeds, according to SEC filings reported by data provider Washington Service.
Chevron spokesman Donald Campbell said a trading window opened after the San Ramon, Calif., energy company's April 28 earnings release, allowing the executives to exercise options and sell stock.
"The potential expiration of some of those options may have been one of the issues here," Mr. Campbell said.
Mr. O'Reilly's options were set to expire over the next 3½ years, with the first expiration set for October 2007. The expiration dates for the other executives' options ranged from July 2007 to June 2011.
After Friday's transactions, Mr. O'Reilly owns 24,994 Chevron shares directly and an additional 65,522 in his 401(k) plan. According to Chevron's latest proxy, Mr. O'Reilly held 1.95 million exercisable options and 885,001 unvested options at the end of last year.
This is Mr. O'Reilly's first sale of Chevron stock since Aug. 31, 2004, when he reported the sale of a split-adjusted 34,800 shares.
Mr. O'Reilly and the other executives sold their shares at prices around $62 apiece, days after Chevron reported a 49% increase in first-quarter earnings.
Given the history of option exercises and sales by Chevron insiders, Mr. Silverman warned against reading broader implications for the stock's outlook into the recent transactions.
"An optimist might look at it and say 'perhaps this is a sign that oil prices will moderate,' " Mr. Silverman said. But he added, "You'd have to be a real optimist, considering what's going on with oil prices right now."
Chevron shares rose 1.5%, or 90 cents, to $62.91 in 4 p.m. composite trading on the New York Stock Exchange.
Write to Nicolas Brulliard at nicolas.brulliard@djn.com
Nigeria records another stride in offshore oil exploration
• Tuesday, May 9, 2006
Nigeria has successfully recorded another giant stride in offshore oil exploration. The latest in its exploratIon success is its deepwater Bonga North Oil and Gas prospect, Offshore Nigeria.
Bonga North 2Xwell, according to sources is located North of the Bonga main field. It was spudded on October 25, 2005 and drilled in 1,019 meters (3,343 feet) of water.
But the exploration well reached a total depth of 4,135 meters (13,600 feet) in December 2005 and penetrated about 90 meters (300 feet) of hydrocarbon bearing sands in several intervals.
The exploration success in Bonga North Offshore is coming on the heels of the commencement of Erha deepwater production, the second deepwater oil project in Nigeria.
Already, Shell Nigeria Exploration and Production Company (SNEPCo) that operates the OML 118 Oil block has formally announced the discovery in Offshore Exploration. SNEPCo holds 55% equity interest’ and other co-ventures include Esso Exploration Production Nigeria (Deepwater) Limited - 20%, Nigeria Agip Exploration Limited - 12.5% and Elf Petroleum Nigeria Limited 12.5 percent.
Managing Director of SNEPCo, Chima Ibeneche expressed happiness with what he called “yet another exploration success in deepwater Nigeria’.
He said the discovery has reinforced the trend of Shell’s exploration efforts in the challenging environment, adding that, “we are proud of our contribution towards the realization of Nigeria’s oil and gas potentials”.
The Tide learnt that the latest discovery when combined with the Bonga North 1XST discovery, recorded during the first quarter of 2004 would strengthen the hydrocarbon resource potential of this sector of the greater Bonga area.
Meanwhile, Nigeria’s crude oil reserves are expected to increase by about 500,000 this year, up from the December 2005 figure of 35 billion barrels. The group Managing Director of Nigerian National Petroleum. Corporation (NNPC), Mr. Funsho Kupolokun said at a lecture he delivered at the Baker Institute Energy forum, Rice University, USA, that the Nigeria’s crude oil reserves at 35 billion in 2005 was higher than the 1996 figure of 28 billion.
He noted that gas reserves have also increased by about 19 trillion cubic feet using the same period, bringing the total reserves to about 184cf with Nigeria Yanking Seventh In the World gas reserves profile
China Seeing Fourth Wave of Overseas M&A
2006-05-10 11:31:31 CRIENGLISH.com
The Boston Consulting Group (BCG) published the latest research report and pointed out that China is starting an overseas merger and acquisition (M&A) wave worldwide.
This report conducted an in-depth analysis of 776 M&A cases that were initiated by 13 fast-growing economies including South Africa, India, Malaysia, Brazil, Mexico, Turkey, Russia and China and targeted developed nations from 2000 to 2004. It shows that although China takes up 30 percent of the total GDP of global fast-growing economies, its enterprises only took part in 82 overseas M&A cases, constituting only 11 percent of these 13 countries' overall offshore M&A. China's M&A strength far lags behind that of India and South Africa.
At the same time, 62 percent of Chinese companies' M&A cases targeted Asia, with Kazakhstan, Hong Kong, Indonesia and South Korea being the largest destinations. The remaining nations were the US, Australia and other nations in South America, North America and Oceania. To date, Chinese enterprises were involved in few big M&A cases abroad, with the average transaction volume reaching between 180 million and 280 million US dollars. Only four M&A transactions had a value of more than 1 billion US dollars each.
It is learnt that since 1986, China has started four overseas M&A waves. The first wave lasted around a decade and focused on offshore investment. The second took place during the 1996-1999 period and was triggered by Hong Kong's return to China; enterprises began to switch their attention to overseas expansion. Starting in 2000, the third M&A wave highlighted domestic expansion and Chinese companies bought shares of joint ventures held by their foreign partners one after another since most of these joint-venture contracts expired at that time.
According to BCG Senior Vice President and Director David Michael, the current M&A wave of Chinese firms overlaps the third to a certain degree, since it surfaced at the end of 2001 when China was about to enter the World Trade Organization. Different from the past, offshore expansion has won a dominant role and mining, energy as well as technology and communication have become the most popular industries that practice M&A.
David Michael pointed out that compared with their western competitors, Chinese purchasers encounter more difficulties in winning M&A battles due to an underlying reason -- politics. Most people in western countries are not prepared for Chinese enterprises' overseas expansion, so they will feel uncomfortable when their domestic natural resources are purchased by companies from another nation with a distinct regime from their own. In addition, they worry that if the buyers are the low-cost Chinese firms instead of western ones, existing employees are more likely to be dismissed.
Michael explained that compared to M&A players from other nations, Chinese enterprises actually have fewer employment reductions because they have relatively less degree of the productive duplication than their rivals from the west.
This report believes that despite the failure of some Chinese companies' recent overseas M&A transactions, offshore M&A has become a trend of Chinese companies' development and will grow stronger with time.
(Source: Chinanews.cn)
Militants in Nigeria's oil-rich region declare ceasefire
LAGOS, May 8, 2006 (Xinhua via COMTEX) -- Militants in oil-rich Niger Delta, south Nigeria, have declared a three-month ceasefire, saying that they are ready to hold negotiations with the government.
In a statement made available here on Monday, Vice-Chairman of the Ijaw Youth Council David Reje said the group was "ready to lay down arms and give the federal government-backed Center for Niger Delta Development a chance to work for the development of the region."
Reje, who signed the statement on behalf of the Movement for the Emancipation of the Niger Delta (MEND), said the group had decided to give the government a chance to prove its commitment to peace and development in the region.
Reje said the MEND's decision to ceasefire for three months was not out of fear or cowardice, but to show its resolve to make things better for the region and its people.
According to the statement, the group has conveyed its ceasefire decision to the Rivers state government and the state government officials will meet with MEND leaders on Tuesday.
Two weeks ago, the MEND announced it took responsibility for a car blast in oil-rich Warri, which killed three people and seriously wounded seven others.
In recent times, the rebel group has announced several times that it would take different tactics to gain greater local control of the areas' oil wealth.
Despite its huge oil wealth, the Niger Delta is afflicted by sabotage, kidnappings and other forms of violence as villagers there accuse oil firms of not doing anything to develop the impoverished area.
Nigeria is the largest oil producer in Africa or the sixth largest oil exporter in the world with a daily crude output of some 2.5 million bpd.
However, the past four months of militant attacks on oil facilities and kidnapping of oil workers in the Niger Delta region have cut the oil output by 630,000 barrels per day, or a quarter.
Outstanding Shares: 990,029,016 as of 2005-11-02
Estimated Market Cap: Not Available
Authorized Shares: 1,000,000,000 as of 2005-11-02
Float: 681,081,962 as of 2005-11-02
Number of Shareholders of Record: 1,338 as of 2005-11-02
http://www.pinksheets.com/quote/company_profile.jsp?symbol=IDCN
Jefferson ERHC/Jeter US export/import Bank connection???
Not sure about this but interesting.... coincidence maybe.... the first article below, last line, mentions that Congressman Jefferson was meeting directly with high-level Nigerian officials to promote the iGate agreement and helping smooth the deal with the U.S. Export-Import Bank.
Now read ERHC's BOD Jeter's biography below. He is Chairman of the Advisory Committee on Africa, US Export - Import Bank
I don't know if this means anything. I'm just trying to read articles and piece together this puzzle. Every time I think we've turned the corner, something bad happens and I start to questioning this investment. However, still long on ERHC.
ND9
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Executive Pleads Guilty to Bribing Congressman's Family
By Ralph Vartabedian, Times Staff Writer
May 4, 2006
The chief executive of a high-tech company in Kentucky pleaded guilty Wednesday to paying more than $400,000 in bribes to the family of Rep. William J. Jefferson (D-La.), a prominent Africa trade expert in the House who remains under investigation for allegedly taking the payoffs.
Vernon L. Jackson of Louisville entered the guilty plea in U.S. District Court in Alexandria, Va., the same courthouse where a former Jefferson aide pleaded guilty in January to participating in the scheme.
Jefferson hasn't been charged and maintains his innocence.
But according to the plea agreements of Jackson and former staff aide Brett M. Pfeffer, the congressman helped arrange U.S. government contracts and set up an Internet service venture in Nigeria. In exchange, Jackson, 53, said he agreed to pay Jefferson's wife and daughters $7,500 per month and 5% of his company's sales over $5 million. Jackson is chief executive and owner of iGate, a small company based in Louisville.
Federal law enforcement officials said Jefferson could be indicted as early as next month, and that others were likely to be snared in the investigation. Federal agents raided Jefferson's home and office in August, reportedly seizing a large amount of cash kept in the freezer.
The agents also obtained a search warrant against the vice president of Nigeria, who owns a mansion in Potomac, Md., where he lives with a wife who holds U.S. citizenship, according to law enforcement sources. Vice President Alhaji Atiku Abubakar was allegedly involved in the Nigerian Internet deal. Abubakar is currently in Nigeria, law enforcement officials said.
Jefferson, 59, a Harvard Law School graduate elected to the House in 1990, is co-chairman of the Congressional Africa Trade and Investment Caucus. His office released a statement Wednesday proclaiming his innocence.
"I was surprised and disappointed to learn of Vernon Jackson's guilty plea and of his characterization of our relationship," Jefferson's statement said. "As I have previously stated, I have never over all the years of my public service accepted payment from anyone for the performance of any act or duty for which I have been elected. I am … innocent in the matter to which Vernon Jackson has [pleaded] guilty."
Michael S. Nachmanoff, a public defender representing Jackson, declined to comment.
The plea agreement refers to a Representative A, but prior court records and law enforcement officials make it clear that person is Jefferson.
The alleged payments from Jackson to Jefferson's family were said to have gone through a shell company, not named in the plea agreement but believed to be ANJ Group LLC, set up in Louisiana. More than $400,000 in checks and wire transfers were made from Jackson to Jefferson from February 2001 to September 2004, according to a statement of facts in the plea agreement.
The profit-sharing arrangement held the potential for millions of dollars to flow to the company if the Nigerian deal was successful, law enforcement officials said. The plea agreement indicates that in July 2003, Jackson agreed to increase Jefferson's share of iGate profits from the African deal to 35% from 5%.
The Nigerian deal involved Netlink Digital Television, which sought to deploy Internet technology throughout Nigeria. Netlink signed a deal to invest $45 million in the venture and actually paid $6.5 million to iGate.
According to Jackson's plea agreement, Jefferson's role involved meeting directly with high-level Nigerian officials to promote the iGate agreement and helping smooth the deal with the U.S. Export-Import Bank.
**************************************
ERHC Appoints Non-Executive Directors
Houston, April 25, 2005- ERHC Energy Inc. ("ERHC" or the Company") (OTCBB:ERHE -
News) announced today the appointment of Howard F. Jeter and Andrew C. Uzoigwe
as non-executive directors.
Howard F. Jeter retired with the rank of Career Minister from the State
Department in 2003 after a 27-year career in the Foreign Service. Ambassador
Jeter is the immediate past US Ambassador to Nigeria. He also served as Deputy
Assistant Secretary of State for African Affairs, State Department Director for
West Africa, President Clinton's Special Envoy for Liberia, and Ambassador to
Botswana. Ambassador Jeter was Deputy Chief of Mission and later Charge
d'Affaires in Lesotho and Namibia. He also had multi-year assignments in
Tanzania and Mozambique
Ambassador Jeter has been the recipient of numerous awards, including the
Presidential Meritorious Service Award, Superior Honor Awards, and several
Performance Awards. He received the Bennie Trailblazer Award from Morehouse
College and the International Peace and Justice Award from the Rainbow
Coalition. Ambassador Jeter is a member of the Council on Foreign Relations, the
American Foreign Service Association, and Phi Beta Kappa.
He earned his Bachelor of Arts Degree, with Honors, from Morehouse College and
Masters Degrees in International Relations, Comparative Politics, and African
Studies from Columbia University and UCLA.
He is currently the Executive Vice President of GoodWorks International, an
international consulting and business advisory group, Chairman of the Advisory
Committee on Africa, US Export - Import Bank and a board member of Africare and
Africa Action.
Nigeria: Bush Commends Obasanjo On Darfur Peace Deal
May 7, 2006, 4 hours, 35 minutes and 57 seconds ago.
By Andnetwork .com
United States Pre-sident George Bush yesterday commended President Olusegun Obasanjo for his successful handling of the peace talks that led to the conclusion of a peace deal for Sudan's Darfur region in Abuja.
President Bush gave the commendation in a telephone call to President Obasanjo earlier today.
A statement by thr President's Senior Sp-ecial Assistant (Media), Mrs. Oluremi Oyo said, "in the course of their conversation, President Obasanjo and his American counterpart also discussed plans for the implementation of the peace agreement signed between the Sudanese Government and the main rebel group in the Darfur region".
Oyo also stated that "the government of the Netherlands has also commended President Obasanjo for showing "strong commitment and leadership" in the negotiations that led to the signing of the peace agreement.
The country's Ambas-sador-at-Large for Af-rica, Mrs. Van Ardenne said at an audience with the Pres-ident today in Abuja that the Nethe-rlands would assist in every possible way to ensure the successful implementation of the Darfur Peace Agreement.
Ardenne praised President Obasanjo and Nigeria for hosting the Sudanese peace talks since 2004 and for successfully handling the negotiations that were concluded yesterday.
Responding, President Obasanjo said the international community needed to do more to ensure sustained peace and development in the Darfur region.
Also yesterday, Oyo said President Obasanjo received a letter of commendation from Liberian President, Mrs. Ellen Johnson-Sirleaf over the Darfur peace deal.
In the letter, which was delivered by a delegation led by the Liberian Minister of Defence, Mr. Brownie Samukai, Mrs. Johnson-Sirleaf thanked Nigeria once again for its role in the restoration of peace and democratic governance to her country.
She asked for continued Nigerian support and assistance, especially in the areas of defence and security.
Source: ThisDay
Obasanjo's greed for power 'risks civil unrest' in Nigeria
By David Blair, Africa Correspondent
(Filed: 06/05/2006)
Nigeria's leader was yesterday accused of risking chaos in Africa's most populous and oil-rich country as he began rewriting the constitution in order to retain power.
President Olusegun Obasanjo, a favourite of western governments and key ally of Tony Blair's campaign to aid Africa, is pushing the national assembly to extend his rule.
He proposed 102 constitutional amendments, including a measure allowing him to serve three terms instead of the present maximum of two.
If passed, this would save Mr Obasanjo, 69, from stepping down next year and allow him to seek re-election after eight years in power.
Critics say this crucial change would destroy the credibility of term limits in African constitutions and plunge Nigeria into crisis.
Ethnic and religious rivalry threatens the very future of the giant country of 130 million people. A bitter struggle for power and resources is being waged between the Muslim north, the Christian south-west, the oil-rich Niger Delta and the homeland of the Ibo tribe in the south-east.
Nigeria's unity can only be guaranteed if power rotates between these groups. If Mr Obasanjo, a Christian from the Yoruba tribe of the south-west, stays in office, this delicate balance could be upset, with disastrous consequences.
"This is a very grave threat to the stability of the country," said Clement Nwankwo, a human rights lawyer and co-founder of Nigeria's Civil Liberties Organisation.
"There will be a crisis if he succeeds. The Niger Delta situation will escalate, the tension between north and south will become almost uncontrollable and it could lead to a very serious civil crisis. No one can tell what the long-term consequences will be."
Turmoil in Nigeria would have global repercussions. It has 35 billion barrels of proven oil reserves - more than anywhere else in sub-Saharan Africa. The 2.5 million barrels exported every day are critical to the international oil market.
A guerrilla campaign against oil installations in the Niger Delta - where most of the reserves are found - has inflated world oil prices. If Mr Obasanjo manages to extend his rule, critics say the chaos will only worsen.
Some legislators have said that the government has offered inducements to ensure the "third term" amendments are passed.
Mr Nwankwo said: "We're not underestimating the amount of money that has been set aside for this project."
Executive Pleads Guilty to Bribing Congressman's Family
By Ralph Vartabedian, Times Staff Writer
May 4, 2006
The chief executive of a high-tech company in Kentucky pleaded guilty Wednesday to paying more than $400,000 in bribes to the family of Rep. William J. Jefferson (D-La.), a prominent Africa trade expert in the House who remains under investigation for allegedly taking the payoffs.
Vernon L. Jackson of Louisville entered the guilty plea in U.S. District Court in Alexandria, Va., the same courthouse where a former Jefferson aide pleaded guilty in January to participating in the scheme.
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Jefferson hasn't been charged and maintains his innocence.
But according to the plea agreements of Jackson and former staff aide Brett M. Pfeffer, the congressman helped arrange U.S. government contracts and set up an Internet service venture in Nigeria. In exchange, Jackson, 53, said he agreed to pay Jefferson's wife and daughters $7,500 per month and 5% of his company's sales over $5 million. Jackson is chief executive and owner of iGate, a small company based in Louisville.
Federal law enforcement officials said Jefferson could be indicted as early as next month, and that others were likely to be snared in the investigation. Federal agents raided Jefferson's home and office in August, reportedly seizing a large amount of cash kept in the freezer.
The agents also obtained a search warrant against the vice president of Nigeria, who owns a mansion in Potomac, Md., where he lives with a wife who holds U.S. citizenship, according to law enforcement sources. Vice President Alhaji Atiku Abubakar was allegedly involved in the Nigerian Internet deal. Abubakar is currently in Nigeria, law enforcement officials said.
Jefferson, 59, a Harvard Law School graduate elected to the House in 1990, is co-chairman of the Congressional Africa Trade and Investment Caucus. His office released a statement Wednesday proclaiming his innocence.
"I was surprised and disappointed to learn of Vernon Jackson's guilty plea and of his characterization of our relationship," Jefferson's statement said. "As I have previously stated, I have never over all the years of my public service accepted payment from anyone for the performance of any act or duty for which I have been elected. I am … innocent in the matter to which Vernon Jackson has [pleaded] guilty."
Michael S. Nachmanoff, a public defender representing Jackson, declined to comment.
The plea agreement refers to a Representative A, but prior court records and law enforcement officials make it clear that person is Jefferson.
The alleged payments from Jackson to Jefferson's family were said to have gone through a shell company, not named in the plea agreement but believed to be ANJ Group LLC, set up in Louisiana. More than $400,000 in checks and wire transfers were made from Jackson to Jefferson from February 2001 to September 2004, according to a statement of facts in the plea agreement.
The profit-sharing arrangement held the potential for millions of dollars to flow to the company if the Nigerian deal was successful, law enforcement officials said. The plea agreement indicates that in July 2003, Jackson agreed to increase Jefferson's share of iGate profits from the African deal to 35% from 5%.
The Nigerian deal involved Netlink Digital Television, which sought to deploy Internet technology throughout Nigeria. Netlink signed a deal to invest $45 million in the venture and actually paid $6.5 million to iGate.
According to Jackson's plea agreement, Jefferson's role involved meeting directly with high-level Nigerian officials to promote the iGate agreement and helping smooth the deal with the U.S. Export-Import Bank.
Here's article on Congressman and Nigeria
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Executive Pleads Guilty to Bribing Congressman's Family
By Ralph Vartabedian, Times Staff Writer
May 4, 2006
The chief executive of a high-tech company in Kentucky pleaded guilty Wednesday to paying more than $400,000 in bribes to the family of Rep. William J. Jefferson (D-La.), a prominent Africa trade expert in the House who remains under investigation for allegedly taking the payoffs.
Vernon L. Jackson of Louisville entered the guilty plea in U.S. District Court in Alexandria, Va., the same courthouse where a former Jefferson aide pleaded guilty in January to participating in the scheme.
Jefferson hasn't been charged and maintains his innocence.
But according to the plea agreements of Jackson and former staff aide Brett M. Pfeffer, the congressman helped arrange U.S. government contracts and set up an Internet service venture in Nigeria. In exchange, Jackson, 53, said he agreed to pay Jefferson's wife and daughters $7,500 per month and 5% of his company's sales over $5 million. Jackson is chief executive and owner of iGate, a small company based in Louisville.
Federal law enforcement officials said Jefferson could be indicted as early as next month, and that others were likely to be snared in the investigation. Federal agents raided Jefferson's home and office in August, reportedly seizing a large amount of cash kept in the freezer.
The agents also obtained a search warrant against the vice president of Nigeria, who owns a mansion in Potomac, Md., where he lives with a wife who holds U.S. citizenship, according to law enforcement sources. Vice President Alhaji Atiku Abubakar was allegedly involved in the Nigerian Internet deal. Abubakar is currently in Nigeria, law enforcement officials said.
Jefferson, 59, a Harvard Law School graduate elected to the House in 1990, is co-chairman of the Congressional Africa Trade and Investment Caucus. His office released a statement Wednesday proclaiming his innocence.
"I was surprised and disappointed to learn of Vernon Jackson's guilty plea and of his characterization of our relationship," Jefferson's statement said. "As I have previously stated, I have never over all the years of my public service accepted payment from anyone for the performance of any act or duty for which I have been elected. I am … innocent in the matter to which Vernon Jackson has [pleaded] guilty."
Michael S. Nachmanoff, a public defender representing Jackson, declined to comment.
The plea agreement refers to a Representative A, but prior court records and law enforcement officials make it clear that person is Jefferson.
The alleged payments from Jackson to Jefferson's family were said to have gone through a shell company, not named in the plea agreement but believed to be ANJ Group LLC, set up in Louisiana. More than $400,000 in checks and wire transfers were made from Jackson to Jefferson from February 2001 to September 2004, according to a statement of facts in the plea agreement.
The profit-sharing arrangement held the potential for millions of dollars to flow to the company if the Nigerian deal was successful, law enforcement officials said. The plea agreement indicates that in July 2003, Jackson agreed to increase Jefferson's share of iGate profits from the African deal to 35% from 5%.
The Nigerian deal involved Netlink Digital Television, which sought to deploy Internet technology throughout Nigeria. Netlink signed a deal to invest $45 million in the venture and actually paid $6.5 million to iGate.
According to Jackson's plea agreement, Jefferson's role involved meeting directly with high-level Nigerian officials to promote the iGate agreement and helping smooth the deal with the U.S. Export-Import Bank.
Nigeria and China to Establish Air Link
Chinese trade delegates welcome Nigerian investment
Email Article Print Article Ibrahim Garba (ibrahim)
Published on 2006-05-04 15:27 (KST)
Nigeria and China plan to establish an air link between the two countries to boost socio-economic activities and open up investment.
Nigeria's aviation minister, Babalola Borishade, made the announcement in Abuja today when he received a delegation of Chinese businessmen led by the president of the Nigeria China Chamber of Commerce, Elvis Emecheta.
Borishade disclosed that the move to secure a flight route was a directive from President Olusegun Obasanjo, who instructed his minister to strengthen Sino-Nigeria relationships through cooperation in various sectors.
"Already, a proposal for the bilateral air service agreement (BASA) between both countries has been sent to China," Borishade said.
The leader of the delegation and deputy governor of China's Henan Province, Jia Lian Chao, said the flight route would also facilitate trade, especially with Henan Province, which has a population of about 97 million.
The province's population is the largest in China and it is strategically located for business and investment opportunities, said the deputy governor.
He urged Nigeria to intensify efforts in ensuring that direct schedule flights between Nigeria and Henan Province see the light of day.
Nigeria: Sao Tome president to ask for aid
Thu. May 04, 2006 09:05 am.
Kizza Hajarah
(SomaliNet) Nigeria is to host the president of Sao Tome this week. He will be in Nigeria to ask for aid in order to improve the livelihood of the people in Sao Tome.
President Fradique de Menezes's visit to Nigeria will also ensure the services of loans the country borrowed from Nigeria. He expects to get an extension of the payment period of US$15million loan that it borrowed from Nigeria. This loan was meant for shared oil revenues.
"I know that they have a fund that was created a few months ago, totaling US$5 billion, for projects in sub-Saharan Africa. We hope that the government and consequently the Sao Tome people may benefit from that aid," he said.
Menezes will be accompanied to Nigeria by the Deputy Prime Minister and Finance minister, Maria dos Santos Torres. They will be in Nigeria for five days. He is expected to visit Nigeria's capital, Abuja and to meet Nigeria's president, Olusengun Obasanjo.
Nigeria: G-8 - Why Obasanjo is Not Invited
May 4, 2006, 16 hours, 49 minutes and 1 second ago.
By Andnetwork .com
Fresh facts emerged yesterday on why President Olusegun Obasanjo has not been invited for this year’s meeting of eight industrialized nations (G8) holding between July 15 and 17 in St. Petersburg, Russia.
Diplomatic sources in Moscow and Washington yesterday confirmed to THISDAY that Obasanjo’s much touted third term ambition was responsible for the decision of the world leaders to ostracise him.
Nigeria was said to have actually sent a diplomatic note to the Russian President, Vladimir Putin, in March asking details of preparations. The letter which was passed through the embassy in Lagos, according to sources, was immediately translated to Russian and dispatched to Putin.
“Up till now, no response has come from Russia” said an official.
The decision to shut the door against Nigeria, according to diplomatic sources in Washing-ton, was taken by all the members of the G8 “and not Russia alone.”
The source added that President George Bush and British Prime Minister Tony Blair were particularly "in the picture so it was not just Russia’s sole decision”.
Recently, Putin and the United States President, George W. Bush were said to have spoken at length on the phone on several international issues chief among which was the next G8 meeting. Though details of their conversation were not disclosed, informed sources told THISDAY that consultations and dialogues usually take place between host country and other G-8 members over the agenda of the meeting and world leaders to extend invitations to.
Asked if the reason for the rebuff of Obasanjo from the elite gathering was the third term, “yes, but like I said the decision was not taken by Russia alone” said a top Russian Foreign Ministry official who spoke with THISDAY last night from Moscow.
Should the rebuff stays, Obasanjo whose main credential is his international clout may have to review his position on the third term issue.
Members of the G-8 are US, Japan, United Kingdom, Germany, Italy, France, Canada and Russia.
Sources also confirmed that the South African president, Thabo Mbeki and few other African leaders including the current African Union Chairman, Denis Sassou Nguesso and the Commission head, Alpha Oumar Konare have received their invitations.
When contacted last night for comments, the Russian embassy’s spokesman, Igor Popov, said he could not confirm if indeed Obasanjo will not be allowed to attend this year’s summit. He, however, disclosed that the embassy in Lagos was yet to be notified of the President’s invitation.
Asked how such invitations are usually channeled, Popov said it is sent by “special official messaging system, usually through the embassy and we will send it to the president. So far, no such letter of invitation has been sent."
Russia is the current president of the G8 and Putin according to diplomatic sources may not make Africa a priority as was the case in the last summit held in Gleneagles last year chaired by the UK.
It is the duty of the presiding country to draw up the agenda for the summit. As such, the British Prime minister, Tony Blair used the opportunity last year to bring to the attention of the world leaders the problems plaguing the continent and the need for the rich nations to help the poor ones. Achieving that analysts said was something close to Blair’s heart.
But this year’s summit which is expected to build on the gains of Gleneagles may not place Africa’s problems on the table.
Russian president was recently quoted as saying “Russia as the presiding country regards it as its duty to give a fresh impetus to efforts to find solutions to key international problems in energy, education and healthcare”.
Russia is therefore not willing to single out Africa for any preferential treatment.
Nigeria’s likely exclusion from the next G8 meeting is seen in diplomatic circles as the first real blow from the international community on the present administration as the country has since 2002 featured prominently at G8 meetings in Canada, France, US and UK.
South Africa’s Mbeki is said to be seen by the G8 leaders as the true African leader in view of his own decision not to use any means available to him to elongate his term in office.