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Sao Tome Clears Way for PSCs
Energy Intelligence
http://www.energyintel.com/DocumentDetail.asp?document_id=165439
Sao Tome and Principe's Parliamentary Commission on Petroleum Affairs has said that a probe into the controversial second licensing round in the Joint Development Zone (JDZ) shared with Nigeria should not hinder the completion of production sharing contracts (PSCs).
"For us, what was most important was to see the status of the [awards] dossier, the negotiations and see with the government how one could most quickly move forward with the [PSCs] that are underway," the head of the commission, Carlos Neves, told local Tela Non newspaper. "We took care to make public that all questions raised in the wake of the report had nothing to do with our relationship with Nigeria, which is a friendly country with whom we want to maintain the best relations. This has more to do with internal issues of our country," Neves said.
The investigation by the country's attorney general concluded that the second licensing round was "seriously flawed" and failed to meet minimum acceptable standards (OD Dec.13,p4). Winners were announced in June, but no contracts have been signed so far, and two US independents, Devon Energy and Noble, have since withdrawn. The report cited "serious procedural deficiencies and political manipulation." Observers say the PSCs could be signed as early as Jan. 11.
Sao Tome's prime minister, Maria do Carmo Silveira, has meanwhile returned the report to Parliament for further study. "We still don't have a definitive position [on the report]. We are carefully analyzing the situation and we will later make our position public."
thx Mark and Art - all coming together
Pioneer Engaged in JDZ
I had asked them for any updates as they have been very quiet on the JDZ front
"Pioneer is still engaged in JDZ discussions."
Chris Paulsen
Investor Relations
Pioneer Natural Resources
Good Recap today in VANGUARD
http://allafrica.com/stories/200601030170.html
it appears the tide maybe turning our way !!
Nightdaytrader that story is 4 years old I fail to see the relevence except YOU'D think everyone respects oil
I hope to see soon STPs respect for $$$$$$
when PSCs are shortly signed
so PSC BL 3 Set for JAN. 16th any word on the rest yet?
assuming the JDA was accurate when they told Mark 4 were done
can we assume the rest will follow in short order
http://www.freetranslation.com/
In relation the perspectives for the near year económico Eugénio you Will Sound is enough optimist. The governor of the Central Bank detached the possibility of the pardon of the foreign debt of the predicted country for the first semester, the result of the first drilling of the block an it be deed in near Janeiro and finally the access of the country the initiative Millenium Challange Acount as catalizadores of that optimism!
STP is optimistic for 2006 - mentions JDZ OIL
GOOD PERSPECTIVES OPEN FOR THE ECONOMY OF S.T.P IN 2006
30.12.2005-J.Vitrina-(S. Tomé) THE year económico of 2005 was satisfactory for S. Tomé and Prince. This despite of the inflation accumulated to have reached 17,2 percent. The swing económico was presented this Thursday by the governor of the central bank in a lecture that elapsed in the hotel Miramar, in the presence of the users económicos national. According to the document presented the activity económica was less dynamic than 2004. The growth of the rough internal product also did not exceed to last year due to dry prolonged that the country knew.
Facts that allied the diminution of the public investments and the situation económica international unfavorable translated by the increase of the price of the oil, of the increased successive one of the rate of interest of the FED, of the valorization of the American dollar, of the diminution of the price of the cocoa and of the natural catastrophes influenced negatively the performance macroeconómico national.
In the however having in count those constraints the year was considered of satisfactory since the performance económico with a rough internal product in the order of the 3,8 percent caused to approval of the country in the last test of evaluation with the International Monetary Bottom, FMI and the World Bank. This despite of the inflation to have reached 17,2 percent.
In relation the perspectives for the near year económico Eugénio you Will Sound is enough optimist. The governor of the Central Bank detached the possibility of the pardon of the foreign debt of the predicted country for the first semester, the result of the first drilling of the block an it be deed in near Janeiro and finally the access of the country the initiative Millenium Challange Acount as catalizadores of that optimism!
actually I do i.e. the last time he called and was told a JDA PR was coming w/in 24hrs the PR came out
wheather or not circumstances change behind the scenes is the true WILD CARD
My Bet is Early JANUARY !!!! here is why
the JDA source said 4 PSCs WERE ALREDY DONE
CVX starts the JDZ Drill Program in JAN and as a related story indicated a poor drill result COULD result in Opertors stepping back from the PSCs to offer less $$$$
IF NOT ALREADY SIGNED
But then again, there are 14 Billion Barrels perhaps they could delay and demand BIGGER SIG Bonuses If Chevron finds a GUSHER
LOL
XCHIP this stock has traded for 5 years with no revenue, few employees, big losses and HUGE O/S -
this is no surprise to anyone here
the PPS has been steady over the past few year at this current range with a few run ups to $.90
the MAORITY of Shares as again reported are owned by Few groups -
There is NO Pumping by the Company, or anyone here
some here may feel the PPS is undervalued vs. the potential for a GIANT OIL/GAS find
some here may feel the ADDAX deal of 25% carry Free interest + $18 Million is worth several more pennys from where we are now
some here may feel the Press to come when 5 PSCs/JOAs are announced to the world may be worth several more pennys from where we are now
some here have indicated ERHC insiders wont settle until the stock is $100 / share
Roll the Dice
Buy Low Sell High
in BL 5 we have what 30 days to cough up $5 Mill or so
do we just transfer the incoming monies from BL 2,3,4
plenty leftover for a hellova Valentines gift
Homeport what do you make of the STP PM reserving comments on the PROBE issue - are they buying time so cooler heads will prevail
seems like the tone is softening and more and more leaning to speedy PSCs
Nice to see STP say they have a deep relation with Nigeria
GoG related Check out this New HDY Video
Turn on your sound, this is new.
http://video.google.com/videoplay?docid=3841401430274906357&q="Understanding+the+SCS+Conces...
gotta love repetition repetition repetition
Interpretation carried out by WesternGeco has enabled the identification of 56 prospective structures with Blocks 1 to 9 in the JDZ, of which 17 were defined
as prospects and 39 as leads. WesternGeco used reservoir parameters similar to those known from nearby fields in Nigeria and Equatorial Guinea. Combined
recoverable reserves potential of the 17 prospects was estimated by WesternGeco to be 14.4 billion barrels of oil.
XChip a poster called Nigeria again this AM to confirm
PCSs are on track and set for JAN.
confirmed by the incoming OPEC minister
confirmed by Barry Morgan
ERHC has fired back
STP President says they cant cancel
STP PM rejects probe
CVX is drilling in JAN
the STP tone is softening as the BLOG reports http://www.erhc.blogspot.com/
we are at a 2 year low on average [pps here]
my guess is some Africans are and have been selling since Awards and stonger US hands are accumulating [this is a lot of $$ for them]
after all with all the MILLIONS of shares exchanged since Awards
WHO IS BUYING them all
Cant be just us small timers on iHub
Happy New year
Buy low Sell High
Xchip Due to TAX LOSS SELLING b4 Year end many are taking losses on ER to offset gains from other securities
I know of some folks who are selling [sold already] and plan to rebuy again in JAN
this happens to most stocks in the RED around this time of year
Thanks Mark - GREAT to See Progress !!!
Homeport looks like the tone is "softening"
(AG's) report had nothing to do in relation to Nigeria, which is a friendly country with whom we want to maintain the best relations."
ERHC News Icon- is there a new story/filing?
STP News - HOMEPORT NEED HELP -- I think it reads that they will have an answer by the end of the week or about "will have results to short stretch about the matter." see below
REPORT OF THE PROCURADORIA-GENERAL one OF THE REPUBLIC GIVES REASON THE DENUNCIATIONS OF THE PARLIAMENTARY COMMISSION FOR OIL-PRODUCING MATTERS
http://www.cstome.net/vitrina/Relatorio.htm
28.12.2005-J.Vitrina-(S. Tomé) THE parliamentary commission for oil-producing matters united this Wednesday for analyze the report of the procuradoria general of the republic that aims diverse faults of procedure for the selection of the companies concessionaires of the second auction carried out in last year in the zone of joint exploitation of oil between S.Tomé and Prince and the Nigeria. Second the president of the commission Carlos Snow the results of that report is going to give reason to the alert of the own commission that called attention in the height for irregularities in the trial.
The fact led up to commission it hear the then minister of guardianship as well like diverse personalities connections the joint authority. The results of the hearing, advanced Carlos Snow already showed that the trial regarding the auction in cause was addicted. “We alert the government and we ask that the question went properly deepened before of be assumed commitments with the oil-producing companies. We said even if important era do not advance with the trial”.
But the recommendations of the parliamentary commission for oil-producing matters simply were ignored. “We were astonished with the signature of the agreement.”
However the public department did his work and detected that had serious procedural deficiencies including the concession of participations of many companies done not qualify or with lower qualifications in we will have technicians and financial.
Concluded even if the procedures occurred in financial detriment of S.Tomé and Prince and did with that the authority of joint development have stayed incapacitated up to present date of celebrate agreements with the winning companies.
By that the parliamentary commission for oil-producing matter is going to deepen now the analysis of him referred report. “Itself will have elements that justify more inquiries we are going to ask to the public department for do-lo”. Guaranteed Carlos Snow believing that will have results to short stretch about the matter.
“I am convinced that to the long one of this week we are going to have the results of this appreciation to the report of the procuradoria-general one of the republic” – concluded. José Bouças
Thx Magic for posting the ADDAX IPO Pg 59+ is all relevant
We all know the JDA fumbled the ball and pre announced the approval w/out formal JMC blessing
West Africa ExxonMobil spends N39.6b in offshore rig operations
ExxonMobil has spent over N39.60 billion ($300 million) on rig operations in Nigeria and other West African countries in 2005.
For most part of the year, the multi-national American firm took the lead in employing rigs in the region among operating companies.
From March through November, the company consistently acquired 10 rigs on contract with day rates ranging from $47,000 to $225,000 and averaging just over $110,000 per day per rig.
For nine months, ExxonMobil was spending over $1 million per day on drilling in offshore West Africa.
A source close to ChevronTexaco, another American company, hinted the company is set to take over the lead in drilling activities in offshore West Africa in 2006, as it has already got at least eight rigs contracted per month through almost the entire first half of 2006, with a peak of 10 rigs already under contract for work next February.
Aside from the majors, the source said many independent oil companies have equally been active in the region, particularly over the last 12 months, pointing out that two years ago, there were eight operators with one or two rigs working in this region.
In the second half of 2005, he said eight different companies have been drilling with two or fewer rigs, among them a few majors with a smaller presence in West Africa, such as BP and Shell, while the majority are independents.
“In fact, during 2005, the highest day rate earned by a rig working off West Africa was paid out by an independent. Nexen contracted Transocean's Deepwater Discovery, a 10,000 drillship, to drill a well offshore Equatorial Guinea at a day rate of $318,500, the highest day rate earned by any rig in 2005.
“With rigs moving back into the market and more than 60 per cent of the current fleet contracted through 2006, West Africa seems poised to experience strong growth in the size, utilization and earnings of its rig fleet,” he added.
Rig utilization offshore West Africa has reached its highest levels in more than three years, when utilization peaked at 95 per cent in April 2002. Since last February, West Africa utilization rate remained above 90 per cent, with a peak of 98 per cent in September, at which point 45 of 46 rigs were contracted.
Over the last two years, the busiest operators offshore West Africa have been Chevron, ExxonMobil, and Total, while nearly two-thirds of the rigs working in this region at any given time were contract between them.
Each of these majors consistently employed a fleet of rigs ranging from as few as four to as many as 10 rigs during any given month, while each of them averaged six to eight rigs working offshore West Africa at a given time during the period.
2006 has More Promise for ERHC !!!
Earlier this year after years many of speculation / doubt / fear, ERHC was Awarded their share in 5 of the most promising deep water blocks offshore W.Africa in the JDZ
our PPS hit $.90 for the 2nd time in 2 years only to slowly creep down to the 2-3 year average of .30
It has been rumored that African shareholders were selling as American buying groups were accumulating.
Bottom line even with all the selling [Millions of Shares] these shares were being placed on the books of stronger hands
This we may never know for certain but common sense would dictate this. Otherwise we'd be at $0.03 vs. $0.30
JDZ Awards Recap
BL 2 65% and operator w/ Pioneer
BL 3 25% w/Pioneer Anadarko as operator
BL 4 60% w/Addax
BL 5 15%
BL 6 15%
We have recently learned from the Addax IPO filing ERHC has cut a deal to receive $18 MM and 26% of BL 4 - with a FREE CARRY
What can we expect from BL 2,3, 5,6 ?
Will ERHC get similar deals ?
My guess is they will be as good as Barry Morgan earlier reported ERHC gets 18.5% in BL 2 w/ Free Carry [he also reported we got 13.5% in BL 4]
So Offor Doubled us up again
Recall we were only supposed to get 15% of BL 2,4
BUT
for some magical reason Exxon passed and we moved in BIG !!
On the negative side ERHC lost Devon, Noble and their auditor
But gained a new auditor and Addax appears to be the better deal even though they are not as well known in the US as Noble
- They are sure to make an impact on the Canadian Markets soon enough
- our share count has stabolized and with financing coming it may not be necessary for further dilution
- New Web Site
- New PR Team
- New Board Members
- new Loan agreement
- Debt Free
- Lawsuits Settled
This has not been an easy stock to own over the years due to all the uncertainty and relative poor pps performance. However I feel a comeback is due in short order.
Aside * this stock has never missied a single day of trading going back to summer of 2001
IMO WE ARE SITTING ON ONE THE BEST KEPT SECRETS ON WALL STREET
as long as our rights remain intact and we continue to get the support of the Nigerian Govt we all stand to do quite well over time. STP has time and time again tried to tamper with our preferential rights only to be turned down.
Politial instability in Africa will always be a concern, but signing PSCs and JOAs will help to releive much of the risk as the Operators take the reins and map out drill campaigns over the next years.
STP Prez. Menezes has said re. ERHC "this is the deal we made, and we must live by it" and re PSCs "we cannot Cancel Alone"
The Incoming OPEC Chairman has said ERHC and the JDZ PSC.s will go forward and be signed" regardless of the Political cries of STP.
The JDA official says not to pay attention to the BS in STP
Chevron starts drilling in a few weeks, they have studied the 2d and 3d maps for years and have better than a 50% chance of hitting a major commercial discovery.
This will help to increase exposure and importance of the JDZ
The importance of African Oil is more and more valuable to the US economy every day as Global Oil demand increases and supplies shrink
The trend going forward may not be so rosy for US Drillers in Africa as more locals and foreign drillers are stepping up leaving less and less for the US Majors.
However somehow I envision ERHC as a major force with proven oil, clean balance sheets and most of all happy shareholders
I wish everyone a Happy Holiday Season
Best Wishes to all of you Longs and your Families
Here's Hoping 2006 will be ERHC's Year
Long and Strong
"It will have absolutely no impact. I am treating this as quite low-key," Daukoru told Platt's.
What else need to be said except
"Where do we sign ........"
Magic I sent it to the Plats author -ADDAX is in!!!
anyone read the ADDAX prospectus on the TSE
big ERHC story - they would be sued if not correct
JMC may not have given full blessing but must have agreed in principle or the JDA wouldnt have PRd it
gonna be a great 2006 folks
buy low sell high
Sao Tome's claims of flawed deals will not impact round:Daukoru
731 words
21 December 2005
07:19
Platts Commodity News
English
Copyright 2005. Platts. All Rights Reserved.
Sao Tome's claims of flawed deals will not impact round:Daukoru
Nigeria and Sao Tome will sign Production Sharing Contracts with winners of the five oil blocks in the controversial 2004 licensing round in the Nigeria-Sao Tome Joint Development Zone early next year despite accusations by Sao Tome's attorney general that some of the deals were seriously flawed, Nigeria's oil minister Edmund Daukoru said Wednesday.
"It will have absolutely no impact, I am treating this as quite low key," Daukoru told Platts.
The Abuja-based Joint Development Authority awarded blocks 2,3,4,5,6 last May, and according to the JDA timetable, the PSC was first scheduled to be signed by mid November but was later shifted to December.
A report published Dec 9 by the Sao Tome Attorney General's Office said several of the companies awarded the blocks lacked the technical know-how and the financial muscle to carry out the work, and that the procedures used to select the companies did not satisfy the minimum standards. "The second licensing round suffered serious procedural flaws, including the award of equity to several companies which were either unqualified or which had inferior qualifications in technical and financial terms," the report said.
CALLS FOR US INVESTIGATION INTO ERHC ENERGY
The attorney general has also called for a US investigation of the award of oil blocks to US minnow ERHC Energy, which was granted preferential rights and options of several of the blocks, claiming ERHC's participation in the round deterred qualified companies from the bidding.
But Daukoru dismissed fears that the report would put pressure on the government of Sao Tome and Principe to review the award of blocks.
"The relationship with ERHC is nothing to do with the JDA as such. This is an issue for the company and Sao Tome. They will have to deal with the legal issues,it is for them to sort out," Daukoru said.
A spokesman for the JDA which administers the offshore zone jointly owned by the two countries - also said the allegations would not affect ongoing negotiations.
"As far as we are concerned, negotiations for the PSC with the block winners are progressing and at advanced stage. It will be ready for signing next January," said the spokesman.
"The whole thing about Sao Tome investigating the ERHC Energy or the 2004 licensing round is all about internal politics of the country and does not have anything to do with the JDA or the treaty existing between Nigeria and Sao Tome," he added.
ERHC SAYS CLAIMS A 'DIRECT ATTACK' ON NIGERIAN GOVERNMENT
Houston-based ERHC Energy, speaking through its counsel, Steve Ahaneku, last week said the report was a "direct attack" on the Nigerian government and said it should take exception to the claim that round was a failure.
ERHC, which is controlled by Nigerian millionaire Emeka Offor, who allegedly had close links with Nigeria's former military leader, said the government of Sao Tome participated fully in all aspects of the process that led to the final award of the five blocks.
In July, Devon Energy, which unlike ERHC has got significant deepwater experience, walked away from equity interests in the most-sought after Block 2 that it considered too small to pursue.
In October, the JDA rejected a bid by Swiss-based Addax to replace Noble Energy, which had been selected to carry out the drilling and exploration work on behalf of the winning consortium in block four, but withdrew from its partnership with co-operator ERHC without explanation.
ERHC already had a memorandum of understanding with Addax to pay Noble's commitment to pay a $90-mil bonus and carry out a three-well drilling program in the first exploration phase.
The Attorney General's report has been submitted to parliament, which is due to debate it shortly, to the government and to President Fradique de Meneses.
De Menezes, whose tiny and impoverished island nation is hoping for a spectacular oil boom, has faced several political crises at home as politicians trade accusations of corruption in the scramble to secure a share of the expected windfall.
Under the terms of a treaty signed in 2002, Nigeria, which is already Africa's largest oil producer, will take 60% of all oil and gas revenues. Sao Tome will take 40%. --Jacinta Moran, jacinta_moran@platts.com
Electick the JDA also said they were done but need the JMC blessing -
Thanks M 2 Steps Forward in this case
I look for a VERY positive PR from the JDA considering all the hard work from the past 6 months and now PSCs are Done
The Nigerian team of the JMC should all approve and with some pushing so shall the STP delegation
Cooler heads will prevail in the coming weeks
too much $$ at stake to turn down and go backwards
Thx Mark - Remember all the Hoopla PRE Awards from the STP side
and Presto when no one was expecting
Menezes flew to Nigeria and Awards Were Made
Same will happen here
The STP AG I'm sure plans to run again for STP political office
The best thing to do is to move forward and have more stringent rules/reg's for the next round
Menezes already said "cant cancel" recall he said prior to awards "We have to live with the [ERHC] deal we made"
I'm hoping he will address his people again in the same mannor he addressed them previously
JDA / Nigeria even Mr. Bronco [former JDA cheif] all on ERHC's side
Buy low sell high
Manti it was nice to see the .32-.325 run to .33-.34 all with 10 minutes in the session
Thank you Barry Morgan - the facts at last
Abuja rejects findings on JDZ licence awards
By Upstream staff
EFFORTS by US investigators working with the Office of the Attorney General of Sao Tome&Principe to stall licence awards in the Joint Development Zone administered with Nigeria may run into the sand, writes Barry Morgan.
Abuja's Minister of State for Petroleum Edmund Daukoru said the Attorney General's report was based on poor information and inspired by political wrangling at the heart of Sao Tome's government.
Daukoru said his first reaction had been to reject the report in its entirety.
For its part, Nigeria is loath to allow the second licensing round to slip at this late stage and is likely to oppose the idea of the Joint Development Authority joining Sao Tome in sanctioning further formal investigation.
Sao Tome President Fradique Menezes has in any case acknowledged that his country could not unilaterally cancel licence awards but would have to act with the agreement of its JDZ partner, Nigeria.
Meanwhile, both the US Justice Department and the Securities&Exchange Commission have been requested to investigate grounds for cancelling US minnow ERHC Energy's preferential rights and options including joint operatorship of two blocks and stakes in several others.
The Attorney General's report suggests Sao Tome will lose $59 million as a result of waivers accorded to ERHC under a bilateral protocol and rights derived from an earlier deal to take over the former Sao Tome oil agency STPetro.
ERHC chief executive Ali Memon insisted the company had no contact with any Sao Tome officials throughout the bidding process.
--------------------------------------------------------------------------------
16 December 2005 00:01 GMT | last updated: 16 December 2005 00:01 GMT
Abuja rejects findings on JDZ licence awards
By Upstream staff
EFFORTS by US investigators working with the Office of the Attorney General of Sao Tome&Principe to stall licence awards in the Joint Development Zone administered with Nigeria may run into the sand, writes Barry Morgan.
Abuja's Minister of State for Petroleum Edmund Daukoru said the Attorney General's report was based on poor information and inspired by political wrangling at the heart of Sao Tome's government.
Daukoru said his first reaction had been to reject the report in its entirety.
For its part, Nigeria is loath to allow the second licensing round to slip at this late stage and is likely to oppose the idea of the Joint Development Authority joining Sao Tome in sanctioning further formal investigation.
Sao Tome President Fradique Menezes has in any case acknowledged that his country could not unilaterally cancel licence awards but would have to act with the agreement of its JDZ partner, Nigeria.
Meanwhile, both the US Justice Department and the Securities&Exchange Commission have been requested to investigate grounds for cancelling US minnow ERHC Energy's preferential rights and options including joint operatorship of two blocks and stakes in several others.
The Attorney General's report suggests Sao Tome will lose $59 million as a result of waivers accorded to ERHC under a bilateral protocol and rights derived from an earlier deal to take over the former Sao Tome oil agency STPetro.
ERHC chief executive Ali Memon insisted the company had no contact with any Sao Tome officials throughout the bidding process.
--------------------------------------------------------------------------------
16 December 2005 00:01 GMT | last updated: 16 December 2005 00:01 GMT
Abuja rejects findings on JDZ licence awards
EFFORTS by US investigators working with the Office of the Attorney General of Sao Tome&Principe to stall licence awards in the Joint Development Zone administered with Nigeria may run into the sand, writes Barry Morgan.
Sidewinder while many of us share your concern I am a buyer here because bottom line Nigeria runs the show
Nigeria has 60% of the JDZ - they have more to lose
As stupid as they are they WILL NOT cancel - this is just political grandstanding before local elections
recall the hupla before AWARDS and PRESTO Awards were made
It is a smear campaign against ERHC no doubt
Take faith from Mr. Ralphal Bronco who said 2 PCSs will go b4 Christmas
Also a JDA source said 4 are done
Also look for a JDA PR any day to speak to this issue
Even the STP president said they cant cancel
Oil licences: Nigeria Rejects Sao Tome’s call for US probe
By Tokunbo Oloruntola
On-Line Editor (with Agency report)
http://www.independentng.com/news/nndec150509.htm
Nigeria has rejected call by Sao Tome on the United States to probe the joint oil licences awarded to the US-based EHRC, recently acquired by a Nigerian.
Protesting the call for probe, Nigeria expressed concern over its existing oil treaty with the neighbouring state.
Nigeria and Sao Tome were due to sign five oil exploration contracts with foreign investors this week.
But São Tome's attorney general, alleging improper payment by the US-based EHRC to the country’s officials, said the agreements might be void.
Sao Tome is expected to lose $58.6 million because of waivers accorded to ERHC and that the rights given to the company were so favourable that they might violate its law.
Sao Tome called for an investigation by the U.S. Securities and Exchange Commission into the alleged payments.
ERHC, however, said it had no contact with officials during the licensing process.
Minister of State for Petroleum, Edmund Daukoru, told Reuters that the report was based on poor information and a product of internal wrangling at the top of the Sao Tome
Government.
"My first reaction is just to reject the report in its entirety. They cannot come after the event to condemn because of their own internal politics,” Daukoru said.
Sao Tome, he said, was struggling to cope with a system of government where the president is from one party and the prime minister is from another.
Mark we all owe you big for your contributions
nice to see the JDA are blowing this off as CRAP
“My first reaction is just to reject the report in its
entirety” says Edmund Daukoru
By Tom Ashby
KUWAIT, Dec 13 (Reuters) - Nigeria's top oil official
questioned on Tuesday the durability of a treaty with Sao Tome
after the island nation called for a U.S. bribery probe into
their joint award of oil licences.
Nigeria and Sao Tome were due to sign five oil exploration
contracts with foreign investors this week, but Sao Tome's
attorney-general said the deals may be void because of
indications that U.S.-based ERHC ERHE made improper
payments to Sao Tome officials.
ERHC said it had no contact with officials during the
licensing process.
Nigerian Minister of State for Petroleum Edmund Daukoru told
Reuters in an interview that the report was based on poor
information and a product of internal wrangling at the top of
the Sao Tome government.
"My first reaction is just to reject the report in its
entirety. They cannot come after the event to condemn because of
their own internal politics," Daukoru said.
Sao Tome was struggling to cope with a system of government
where the president is from one party and the prime minister
from another, Daukoru said.
"I see a basic inability to weave a national consensus even
on small issues. We are being made to appear as if we are
forcing things on them."
Sao Tome entered into an agreement with ERHC many years ago
giving the company preferential rights to equity in Sao Tome's
oil acreage and valuable waivers in exchange for technical and
financial services. The company was later acquired by a Nigerian
businessman and floated on a U.S. stock market.
The deal acquired new significance when the tiny island
nation signed a treaty with Nigeria in 2000 to put aside a
border dispute and develop the offshore oil resources jointly.
BIG WINNER
ERHC was the biggest winner in May's joint exploration
licensing, winning joint control of two blocks and a stake in
three others. Its share price has risen sharply on hopes of a
big find. Other companies involved in the licensing included
Addax, Devon DEV and Anadarko APC.
U.S. giant Chevron CVX had previously won drilling
rights on another joint block.
The report said that Sao Tome would lose $58.6 million
because of waivers accorded to ERHC, and that the rights given
to the little-known company were so favourable that they might
violate its law by alienating control of its natural resources.
It called for an investigation by the U.S. Securities and
Exchange Commission into the alleged payments.
Daukoru said that if Sao Tome wanted to amend or withdraw
benefits it accorded to ERHC, it was free to do that
unilaterally, but it should not endanger the whole process.
"Even after the round, whatever equity belongs to ERHC they
can expropriate or buy, whatever," Daukoru said.
Daukoru said the attorney-general's report falsely accused
Nigeria of being overbearing in negotiations with foreign
investors.
"For anybody in Sao Tome to be holier than thou really
surprises me. If they were to operate that place alone, they
would get worse things than what we got working together. They
have benefited from our experience," Daukoru said.
Daukoru said the contracts were negotiated over a period of
several months by a joint development authority headed by a Sao
Tomean, and that Nigeria had conceded several points to Sao Tome
to get a deal signed.
"We have entered a treaty with them which in hindsight, one
wonders ... In a case where every issue has to be dealt with in
conference with the two countries, I don't know how long it will
work. But having entered into it and until the treaty is
revised, we have to show patience."
((Editing by Brian Killen; Reuters Messaging
thomas.ashby.reuters.com@reuters.net; Lagos newsroom; +234 1 263
1943))
Homeport YES we are , thx again
Homeport the Before XMas comment was from a local story and from a JDA source
I assume this was the intention ...
"celebrate agreements with the winning companies in time for Christmas. "
A BETTER TRANSLATION , sorry Mr. Poopypants
AS AUCTION OF PETROLIFEROUS BLOCKS IS VITIATED 12.12.2005-J.Vitrina-(S. Tomé) the procedures used for the selecion of the company auction as concessionaires for zone of joint exploration of oil between S. Tomé and Príncipe and the Nigéria are vitiated with "serious imperfections" and they had not reached the necessary minimum standards the concession of licenses.
The conclusion is of the office of the attorney general-generality of the republic and relates to results of an inquiry made for this institution in the sequência of some done denunciations the substance. As one note of the press of the office of the attorney general-generality of the republic these procedures had occurred in financial detriment of S. Tomé and Príncipe BUT had made with the authority of joint development has been disabled until the present date to celebrate agreements with the winning companies in time for Christmas.
The public prosecution service still advances that the second round suffered amongst other serious procedural deficiencies including the concession of participation for many not qualified companies or with inferior qualifications in terms technician and financiers. Therefore the elaborated report contains some recommendations for the procedures and transparency to be implemented in the future patrols. This in the perspective to assure that the international ones in substance of auction of petroliferous blocks are the best adoptees practical.
The report according to office of the attorney general-generality of the republic was delivered to the president of the republic, to the president of the national assembleia and to the government. It matters to emphasize that as the auction of petroliferous blocks in the zone of joint exploration between the Nigéria and S. Tomé and Príncipe was carried through in 2004.. Jose Bouças