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"doesn't identify concrete evidence of wrongdoing"
says
The report, a copy of which was reviewed by The Wall Street Journal,
ERHC in the Wall Street Journal
By Chip Cummins
Of THE WALL STREET JOURNAL EUROPE
LONDON - The attorney general of the West African island nation of Sao Tome &
Principe has asked the U.S. Department of Justice and the Securities and
Exchange Commission to investigate Houston-based ERHC Energy Inc., an
over-the-counter-listed company that earlier this year clinched a number of
oil-exploration awards.
The tiny, former Portuguese enclave, situated in the Gulf of Guinea off the
coast of Gabon, has excited the interest of large Western companies eager to
explore the potentially oil-rich waters around the islands.
(This story and related background material will be available on The Wall
Street Journal Web site, WSJ.com.)
In a report probing Sao Tome's most recent round of oil-exploration auctions,
the Sao Tome attorney general's office singled out ERHC for special scrutiny
related to a contract the company negotiated with Sao Tome officials over
preferential rights to oil exploration in the islands' waters. The report has
been forwarded to U.S. authorities, according to people familiar with the
situation.
ERHC trades on the OTC Bulletin Board. According to filings with the SEC, its
major shareholder as of late 2004 was Chrome Energy LLC, which in turn is
controlled by a Nigerian businessman named Sir Emeka Offor. Despite its small
size, ERHC has gained a popular following among some OTC stock traders.
Officials at ERHC and Chrome weren't immediately available to comment.
The report, a copy of which was reviewed by The Wall Street Journal, doesn't
identify concrete evidence of wrongdoing, but says at "every stage" of the
probe, "there is the suggestion that ERHC and its parent Chrome may have made
improper payments to government officials or provided benefits to their
families in order to secure the assistance of such officials in continuing the
contract."
In the report, the office said it would seek the assistance of the two U.S.
agencies in probing whether ERHC violated the U.S. Foreign Corrupt Practices
Act. Reuters on Monday reported the attorney general's intention to request
U.S. assistance.
It is unclear if U.S. officials have acted on the request. A Justice
Department spokesperson didn't return a message seeking comment. An SEC
spokesman declined to comment.
The office of Sao Tome Attorney General Adelino Pereira, in a statement last
week, said his investigation found that procedures used to select winning
companies were "seriously flawed," with some companies winning bids without
having the technical or financial expertise to contribute to the projects. The
contracts were awarded by the Joint Development Administration, an agency
formed between Nigeria and Sao Tome that is handling competitive bidding for
the rights to explore acreage that straddles the territorial waters of the two
West African nations.
(END) Dow Jones Newswires
12-13-05 0654ET
Copyright (c) 2005 Dow Jones & Company, Inc.
06:54 121305
Sao Tome scrutinises ERHC By Upstream staff
Sao Tome’s Attorney General’s office has requested that the US government investigate contracts awarded to Houston-based ERHC Energy during a recent exploration licensing round.
US-listed ERHC, which Sao Tome says is controlled by Nigerian company Chrome, was the biggest winner from the licensing round for five blocks, gaining the joint control of two blocks and stakes in the three others.
According to the report obtained by Reuters, Sao Tome’s investigation into the contracts concluded that alleged irregularities could result in a loss of $58.6 million in revenues if preferential rights are granted to ERHC.
"Apart from fraud, Sao Tome and Principe should again reexamine whether there are grounds for terminating the contract," the report said.
Expressing concerns over the financial and technical qualifications of some of the companies awarded blocks by the Joint Development Authority (JDA), the inquiry suggested some of ERHC’s partners might simply withdraw.
The report said US independents Devon Energy and Noble Energy had already withdrawn from two groups where ERHC was a partner.
"One immediate challenge to the JDA may be the partial collapse of the second round itself," the report said, noting none of the groups awarded blocks had finalised production sharing agreements with the JDA.
I need a Drink .....
BOTTOM LINE THEY HAVE NO PROOF
we would have heard of it by now - the investigation would have pointed that out
They are digging up 3 year old dirt
CTOIL says awards are Fri....
http://ragingbull.lycos.com/mboard/boards.cgi?board=ERHE&read=74085
Looks and Smells like BS again !! NO EVIDENCE !!
How many times can they go around like this!
BALANCE - this REPORT SAYS PSCs BEFORE XMAS !!!
"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
A Special Report on ERHC Energy
December 11, 2005
I have owned shares in ERHC Energy (ticker symbol erhe.ob) for almost 2 years now, purchasing the majority of them before I became convinced of silver’s incredible potential. That being said, it was certainly not my intention to have my first newsletter focus in on a speculative oil play, as I realize that this is a Silver Stock Newsletter, but, due to the many very positive developments that have recently taken place with regards to ERHC Energy, I feel compelled to make this information readily available to you.
Currently, ERHC Energy is the only energy stock in my portfolio, and I believe that it is a very attractive buy at the current price of $.41/share. My short term price target is $.75-$2.00/share, and these levels should be approached within weeks if the proposed PSC signings remain on schedule.
THE SITUATION AT HAND
In May of 2005, ERHC Energy was awarded substantial percentages in 5 potentially prolific oil blocks in the Gulf of Guinea waters, located off the coast of Nigeria near the islands of Sao Tome and Principe. The region known as the Joint Development Zone [JDZ] http://www.nigeriasaotomejda.com/
---------------------------------------------------------
Block 2 ---awarded 65% interest (operator, partnered with Pioneer Natural Resources [NYSE:PXD]
Block 3 ---awarded 25% interest (partnered with Pioneer)
Block 4 ---awarded 60% interest (operator, partnered with Addax) [recently filed IPO on the Toronto Stock Exchange $400 million]
Block 5 ---awarded 15% interest
Block 6 ---awarded 15% interest
---------------------------------------------------------
Block 9 --- JDZ Next Round 15% interest
---------------------------------------------------------
STP BL A ---[own rights] 100% interest
STP BL B ---[own rights] 100% interest
STP BL C ---[own rights] 15% interest
STP BL D ---[own rights] 15% interest
The nine blocks auctioned off in JDZ rounds I and II* are estimated to contain between 8-14 billion barrels of oil, and blocks 1, 2, and 4 are believed to be the richest. Notice that ERHC together with its joint- venture partners hold majority interest in blocks 2 and 4, meaning that ERHC owns potential reserves of 2-4 billion barrels of oil if the seismic and 3-D mapping reports (also here) are accurate
(Note: this does not take into account the enormous amounts of natural gas believed to be located in this region, nor does it factor in the rights to 2 x 100% more blocks that ERHC will take full ownership of when the future EEZ round is conducted)
*There will be several future rounds in the JDZ as JDZ round I and JDZ round II covered only a small percentage of the previously disputed boundary between Sao Tome and Nigeria.
Chevron and Exxon-Mobil both won rights to block 1 in the first bidding round conducted in April of 2003. Chevron is the operator, and it should be noted their $123 million bid was one of the largest signature bonuses ever paid for the rights to one oil block. Chevron expects to begin a drilling program in January of 2006.
In blocks 2 and 3, ERHC Energy has partnered with Pioneer Natural Resources , a well respected drilling company listed on the NYSE which trades under the symbol PXD. Currently, Pioneer’s market capitalization is an impressive 6.6 billion dollars.
In block 4, ERHC has partnered with Addax Petroleum. Addax petroleum has just recently announced that they will be providing ERHC with a ‘full carry’ till first oil (meaning ERHC doesn’t have to pay any expenses until production begins). In addition to this wonderful news, it has recently been announced that Addax will not only carry ERHC to first oil, but they will also pay ERHC 18 million dollars and grant them a larger percent interest in block 4 than previously anticipated (26.67% vs. 21.25%)!
It has also been announced just a few days ago that Addax will soon be conducting an IPO on the Toronto exchange. It is estimated that this initial public offering will raise over $350 million dollars for the company, making it the largest common stock IPO that has taken place in Canada in over a year. This is significant because it reveals Addax’s desire to raise large amounts of capital in order to finance their African operations*, and undoubtedly, it’s JV (joint-venture) with ERHC has something to do with it.
*Addax Petroleum currently produces between 70,000-80,000 barrels of oil per day in all their African operations combined.
Also, Pioneer Resources has already made it quite clear that they will begin selling their offshore assets in the Gulf of Mexico and southern Argentina in order to focus on their onshore North American and onshore/offshore African operations. Pioneer has made this decision because it believes these opportunities to be “better aligned with the Company's current exploration objectives” (Link).
The Gulf of Guinea is gradually gaining worldwide recognition as it is thought to contain multiple elephant fields (oil fields in excess of 1 billion barrels), and perhaps as much as "10 percent of the world's known oil reserves". In addition to the multi-billion dollar companies of Chevron, Exxon-Mobil, and Pioneer Natural Resources, this area has attracted the attention of several Chinese and Indian oil giants who are all desperate to satiate their energy needs. In fact, there is currently a bid-war going on between Chrome Energy (ERHC’s parent company), Taiwan’s CPC, and India’s Essar over the ownership of Nigeria’s largest oil refinery.
But before drilling can begin in blocks 2-9, the signing of the PSC’s (Production Sharing Contracts) must take place. As it now stands, the PSC’s for the 5 blocks offered in round 2 are likely to be completed before Christmas, with the possible exception of block 4 due to a recent change in operatorship. If this date is met without further delay, I expect the share price of ERHC to increase dramatically in the coming weeks, similar to its precipitous price rise in April of 2004. Only this time the price will reflect the actual results of the bidding round, and not just expectations, which were not met the first time around.
Long term, I rate ERHC as a strong buy, with a potential 10-20 times price appreciation by the time of first oil well production (est. 2010). This price- projection is based upon comparative market valuations of other companies that command similar oil prospects.
Short term, I believe ERHC offers incredible upside volatility, of which it may be wise to capitalize upon.
Some excellent sites where you can conduct further due diligence:
http://www.erhc.com (ERHC Energy’s Web Site)
http://erhc.blogspot .com (Well Maintained Blog)
http://www.investorshub.com/boards / (Active Investment Forum)
http://finance.yahoo.com/q? s=erhe.ob
http://www.erhc.greatsprings.net
ERHC Energy is based in Houston, TX. It has never attempted to pump, just check their news releases for the past several years for confirmation. The Chairman of the Board is Sir Emeka Offor, a well known Nigerian billionaire involved primarily in the insurance and aviation industries. Sir Emeka Offor is currently the sole manager of Chrome, which is itself a major shareholder of ERHC Energy (303,591,433 shares as of March 9, 2005)
ERHC Energy’s Key Statistics:
Total Shares Outstanding: 710 Million
Current Market Capitalization: $291 Million
Cash: $1.5 Million
Debt: $33 Thousand
Technical Analysis: Provided by Roy Martens
Weekly Analysis
Daily Analysis I
Daily Analysis II
I am not a licensed broker, and I advise my readers to do their own due diligence before investing in any stock. The above information is accurate to the best of my knowledge.
I own shares in erhe.ob. The company has not endorsed my views, and neither have they compensated me in any way to write this article.
Sincerely,
David Zurbuchen
looks like they will better enforce Round 3 and leave Round 2 alone - thats how I read it - any better translations
PGR detected imperfections in the adjudication of the petroliferous blocks. The general office of the attorney general of the republic, detected "imperfections" in the adjudication of the concessions of the petroliferous blocks in the second patrol of licitation, the joint zone of exploration between the Nigéria and Is Tomé and Príncipe, carried through to one year.
The PGR concluded however, that the used procedures to seleccionar the company concessionaires had "would be imperfections" and they had not reached the necessary minimum standards for the concession of licenses.
Amongst others, you would be procedural deficiencies, the official notice makes referencia that the concession of participation for many not qualified companies, and with inferior qualifications in terms technician and financiers.
The general office of the attorney general of the republica, still considers that this act, it occurred in financial damage of the country, and on the other hand, it made with that the development authority conjunto(JDZ), has been disabled, until present date, to sign agreements with the winning companies.
The report elaborated distributed to all the sovereignty agencies, contains some recommendations for the procedures in the sequência of the second patrol and for the future patrols, with the end to assure best practical the international ones in substance of auctions of blocks
SEC discussion ... as the Blog made reference ADDAX in their IPO prospectus mentioned the ERHC deal terms
ERHC has yet to announce the terms of the Addax/ERHC deal
Q: is this a violation of SEC laws
ADDAX filed with a Canadian Exchange
Addax/ERHC have yet to sign a PSC / JOA, so really its not an official deal expect by MOU
Q: so is ERHC AT FAULT for not disclosing or not
I say not
Hearing DowJones may do a follow up on the new Addax info
Words getting out
NITE top BID
REcall NITE led our rally to $.90
Better News than we've seen in a long while
BTW
as Reported in the Toronto Globe and Mail
the Addax IPO is Canada's biggest IPO in over 1 year
it's big financial news up there
Addax Petroleum Corporation
December 7, 2005 - 16:24:25 ET
Addax Petroleum Corporation Files Preliminary Prospectus for Initial Public
Offering
CALGARY, ALBERTA--(CCNMatthews - Dec. 7, 2005) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A
VIOLATION OF U.S. SECURITIES LAW.
Addax Petroleum Corporation announced today that it has filed a preliminary
prospectus with securities regulatory authorities in all provinces of Canada
with respect to an initial public offering of its common shares in Canada.
Addax Petroleum is an international oil and gas exploration and production
company focused on Africa and the Middle East. Addax Petroleum is the largest
independent oil producer in Nigeria, producing an average of approximately
74,450 barrels of oil per day for October 2005. Concurrent with the filing of
its preliminary prospectus, Addax Petroleum has applied to have its common
shares listed on the Toronto Stock Exchange. The lead underwriters of the
proposed offering are RBC Capital Markets and Merrill Lynch Canada Inc.
FOR FURTHER INFORMATION PLEASE CONTACT:
Addax Petroleum Corporation Mr. Michael Ebsary Chief Financial Officer
41-22-702-9400 Email: michael.ebsary@aogltd.com Addax Petroleum Corporation
Ms. Marie-Gabrielle Cajoly Communications and PR Manager 41-22-702-9400
Email: marie-gabrielle.cajoly@aogltd.com
The Toronto Stock Exchange does not accept responsibility for the adequacy or
accuracy of this release.
Wed Dec 7 21:24:28 2005 -GMT- pnac (nCCNEg9cfa) = 1 21:24
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JDZ BLOCK 1 COULD BE A "GIANT" ....
http://www.afren.com/pdf/AfrenCPR-Block1b.pdf
JDZ BL 1 Hydrocarbon Potential
"ECL's opinion is that JDZ Block 1 has the potential for hosting "GIANT" hydrocarbon reserves, comparable on an individual prospect basis to those already discovered in the region.
A "GIANT" field is generally accepted to be a field where the reserves are in excess of 500MM bbls of recoverable oil or 3 TCF of sales of natural gas
Nigeria, Sao Tome Oil Pacts Seen Before Christmas
by Vincent Nwanma
Wed, Nov 30, 2005 16:40 GMT
LAGOS - Production sharing contracts and joint operating agreements in the oil blocks located in the Nigerian-Sao Tome Joint Development Zone will be signed before Christmas, a Nigerian government source told Dow Jones Newswires Wednesday.
The source also said that the Joint Development Authority, which manages resources in the maritime boundary shared between the two countries, has approved "in principle" Swiss energy company Addax Petroleum's role as operator of block 4 in the zone.
"The agreements will be signed sometime in December, possibly before Christmas. We are hoping so," the source said.
Addax, which already has operations in Nigeria, replaced Houston-based Noble Energy Inc. (NBL) after it withdrew this year from a consortium led by ERHC Energy Inc. (ERHE).
"Addax is almost there," the source said. "We have given an approval in principle, but we need certain clearance from the Sao Tomean end."
The JDA made the latest block awards last May, with blocks 2 to 6 being offered to a different consortium made up of local and international oil companies.
Since then, negotiations have been made on joint operating agreements among the consortia members.
The groups have also been negotiating with the JDA on the terms for the production sharing contract, under which the blocks will be operated.
All the agreements are subject to approval by the Joint Ministerial Council, the highest ruling organ of the JDZ, made up of ministers from the two countries.
© 2005 Dow Jones Newswires.
Email page
Ajaxx I'm now in the Spec29 camp of NO buy in at this point, I
do feel there was some offer presented but respectfully declined
hoping for PSCs and perhaps some welcome news re. financing for BL 5 and CARRY arrangements with consortium partners
If all 5 PSCs go forward with subsequent news to follow I cant see why dont test the yr. highs again
here's hoping
Phoneman no its a few months old
just pointed it out to some who felt it was made up
ERHC offer causes shift in the deep
By Upstream staff
ERHC Energy is considering an offer by a US player to purchase a controlling stake in the company, which could alter the balance of corporate power in a recently concluded deep-water licensing round in the Gulf of Guinea, writes Barry Morgan.
US-listed ERHC Energy's chairman Emeka Offor, the Nigerian businessman who also heads up Nigerian independent Chrome Energy and is a major stakeholder in ERHC, convened a board meeting last week in which directors voted to "consider the offer on the table".
ERHC, which has acquired substantial acreage positions with partners Devon Energy, Pioneer Natural Resources and Noble Energy in the Joint Development Zone (JDZ) organised by Sao Tome&Principe and Nigeria, has similar ambitions in the Exclusive Economic Zone (EEZ).
Contact has been established with a mid-sized US company angling to take control of the company.
Despite a possible name change, it is understood ERHC's ambitions to become a regional player will survive any possible deal and that Nigerian interests will retain some of the equity as the JDZ and EEZ deals go forward.
Offor's stake has been reduced in recent weeks and is now believed to be around the 43% mark. Offor, along with other Nigerian shareholders, could collectively decide to maintain a controlling interest, but indications are the temptation to sell is gaining ground among major shareholders, most of whom are private US investors.
It is believed Devon or Pioneer both could be first in line if an ERHC stock sale is considered, given their existing partnership in the JDZ.
The Joint Development Authority this week reiterated its intent to sign PSCs before September for all five blocks, although indications are it would wish to get blocks 2, 3 and 4 to signature before then.
Signs are that technical difficulties over Block 5 may take some time to resolve and officials are loath to let signatures slip on the other licences.
Farther south, Sao Tome&Principe had aimed before the end of the year to license acreage falling under its part of the EEZ, but growing political tensions amid calls for early polls may cause delay.
Moreover, several parties are poised to defend mutually contradictory preferential rights claims in the EEZ.
Equator Exploration and its subsidiary Aqua Exploration claim the sole right to acquire 100% working interest in two blocks of its choice in the EEZ.
This appears to fly in the face of claims by ERHC Energy to have a similar exclusive deal for a 100% stake in blocks 4 and 5 along with rights to a 15% stake in EEZ blocks 1, 2&3.
--------------------------------------------------------------------------------
30 June 2005 23:01 GMT | last updated: 01 July 2005 09:38 GMT
Sangamon Kid Barry Morgan Reported it on UPSTREAM
do you think reporters make up their own stories
Obviously ERHC declined the offer, or took a pass or its pending
i believe there was some kind of offer[s]
just didn;t pan out, dont shoot the messenger if you dont like the news, Why dont you get Memon on the horn and find out when PSCs are if it;s so easy
BTW what due diligence are you brining to the table?
Homeport certian folks DONT want to be on the hook if certain dates are missed [again]
THAT Update earlier is NOT official in any way [we all know this]
if certain dates are FIRMED up then certain sources MAY want their name out there but again considering how many missed dates have come and gone it doesn;t suprise me that some are say "GUNSHY" to stamp their name to something
Here's Hoping
Sangamon Kid agreed of course these are RUMORS - as they are NOT official news [from JDA or ERHC]
however if you've been following this play as long as I have you'd know the MAJORITY of the news comes from outside sources / contacts / followers / reporters / Nigerian trade rags etc.
some of it comes true i.e. ERHC partners
some doesn't i.e. buyout i.e news dates
all to be taken with a grain of salt
but I;ll take good news rumors over bad any day
BB our London Source just CONFIRMED this too.....
my understanding that ALL will be signed before X-Mas /
I have never written nor believed that the 'probe' was an issue for anyone except the STP/Kennedy/Democrat lobby
and
they have no real influence (and that's what irks them the most)/
Plus
Addax was confirmed a few weeks back. -- no worries”
Art - the good news here is Pioneer is actively negotiating with ERHC and the JDZ and with the consortium partners
the PSCs and JOAs will go forward, a JDA source did say before X-MAs too
we've all been patient post awards and now have a much better buying opportunuty here
Chevron is drilling JDZ BL 1 in Dec ...
ERHC has a sub in BL 4 a new auditor a new web site and new PR team
buy low sell high
India offers $1 bn sweetner for West Africa oil deals
Reuters
Mumbai, November 24, 2005
India is offering credit of up to $1 billion to build power projects, railways, refineries and even stadiums in oil-rich but poor West African nations, as it seeks to quench its growing thirst for foreign oil.
India, which imports 70 per cent of its crude, has devised a multi-pronged strategy to ensure future oil supplies from overseas oil and gas properties. While political weight has been key, India is now also offering financial and industrial assistance.
"India has decided to offer lines of credit up to $1 billion on a government-to-government basis to these countries for infrastructure projects in exchange of oil exploration rights," Talmiz Ahmad, a senior India oil ministry official said. "West Africa is a long-term investment destination for India."
Ahmad said India will offer commercial partnerships and joint ventures to a group of African countries in oil, roads, railways, IT, power and ports under the partnership development initiative.
"This model is definitely worth pursuing," he said, noting the Africans now seem to realise the spoils of their oil should go into infrastructure instead of the pockets of oil majors.
A $6 billion infrastructure investment deal struck in Nigeria this month by ONGC Mittal Energy Ltd, a joint venture between India's state-run Oil and Natural Gas Corp Ltd (ONGC) and the world's largest steel maker, Mittal Steel, is seen as a major breakthrough in this strategy.
The offer to the only West African member of the Organization of the Petroleum Exporting Countries, in return for exploration blocks, could not be refused because Nigeria needs more foreign investment in its decayed industrial base.
"The ONGC deal is just the beginning of India's entry into West African oil exploration," Ahmad said.
India will now look to a group of eight West African countries in a special cooperation model called the Team-9 initiative, under which India offers credit for projects set up by Indian companies through the Export Import Bank of India.
Team-9 countries include Burkina Faso, Chad, Ivory Coast, Equatorial Guinea, Ghana, Guinea-Bissau, Mali and Senegal.
Ahmad said Sao Tome, Niger, Democratic Republic of Congo and Congo Brazaville would also be approached by India.
INDIA JUMPS ON BANDWAGON
Financial assistance for infrastructure is an important aspect of any oil deal with developing African countries, ONGC Chairman and Managing Director Subir Raha said.
ONGC's presence in Sudan's Greater Nile project enabled it to build a $259 million pipeline from the port to the oil production facility and then transfer it to the Sudanese government, he said.
"This project is probably the best example of what ONGC can do if it is given an opportunity in any country," Raha said.
ONGC has also built a stadium in Sudan to help resurrect the game of soccer for people in the strife-torn country.
Financial assistance is not new in the oil industry, but India's willingness to offer such help to countries that struggle to secure credit privately is a positive step, said Praveen Martis, an analyst with British consulting firm Wood Mackenzie.
"These kinds of assistance are no doubt helpful. The Chinese have been doing it in countries like Sudan and Kazakhstan, where they have a substantial oil equity investment in the region, for quite a while now," Martis said.
"There is a risk factor in this, but it could be worth it if it helps Indian oil companies in strengthening relationships with the host countries and, in turn, offering a better chance in securing assets in these countries," he added.
the Blog's story is an old story with old quotes about Menezes and the Prope [By Mike Oduniyi with agency report, 11.21.2005]
these Nigerian reporters either are too lazy to do some hard research or there is just no new news to speak of as every one is tightlipped and wont say
BUT the JDA SOURCE was CONFIDENT PSCs WILL Go forward and ADDAX is approved
but again this is Africa as we know
Cat Bird Seat rules
PSCs WILL Be Signed Before X-MAS according to a JDA official
a source yesterday confirmed when he called the JDA directly, that "PSC's will be signed before X-MAS and the ADDAX replacement has been approved pending some final "Red Tape"
Sorry I cant be more specific, if anyone wants to call to confirm they are welcome to do so
Not sure why the story quotes Centurium as a source especially when that quote was like 2 weeks ago, unless he was specifially referring to BL 4
Homeport aside from the This Day story last week there has been ZERO news on PSCs
do you find this odd ?
How tight lipped everyone is ?
Homeport I believe there was an offer presented but ERHC must have turned it down - hoping for some nice surprises along with the PSCs next month
To All: I got an msg from BM saying his Upstream story was off track as ADDAX was APPROVED by the JMC as he predicted it would be further down in his story
- also a source called the JDA yesterday and Confirmed with Sam D that the PSCs would be signed in Dec
also the clouds seem to be moving out ERHC In Europe is up
ERHC ENERGY (ERH.F)
At 3:02AM ET: 0.33 +0.04 +13.79%
from Chevron in Nigeria "Our drilling campaign calendar has indeed moved up, and the plan is to commence [JDZ] drilling in December 2005."
Femi Odumabo
General Manager, Govt. & Public Affairs
ChevronTexaco Nigeria-Mid Africa Business Unit
E-mail: OOdumabo@chevrontexaco.com
Phone: D/L +234-1-266 0168
Cel: +234-803 402 2979
CNL S/B: +234-1-266 8002 Ext 8816
Strategy BM goes to press on Tuesday so YES he misssed todays update of the JMC meeting which appears to give ADDAX the go ahead
Since the Nigerian side wishes to swiftly conclude the round and move on, many believe the Addax bid will still win out
---------
Sources told THISDAY at the end of the close-door meeting that the formalization of the choice of Swiss firm, Addax Petroleum, as replacement to US independent oil company, Noble, as technical partner in bloc 04 of the JDZ was also concluded.
---------
JDA Approves ERHC Energy and Addax Consortium for Block 4
E-mail or Print this story
31 October 2005, 4:58pm ET
HOUSTON--(BUSINESS WIRE)--Oct. 31, 2005--Houston-based ERHC Energy (OTCBB:ERHE) announced today the company has received approval from the Nigeria-Sao Tome & Principe Joint Development Authority for Swiss-based Addax Petroleum to replace Noble Energy in its Joint Development Zone Block 4 consortium.
The JDA approval states that Addax satisfies the JDA's technical and commercial requirement for the operatorship of JDZ Block 4, and requires the ERHC-Addax consortium designate Addax as the operator, as well as for the consortium to accept all commercial and technical terms of the original award of 35 percent equity interest.
More Upstream
Addax blocked in JDZ Block-4
THE Nigeria-Sao Tome Joint Development Authority has pulled back from approving Swiss explorer Addax Petroleum's bid to step into the shoes of Noble Energy as prospective operator of deep-water Block-4 in the joint development zone between the two countries.
The Abuja-based authority withdrew a press release announcing its approval that Addax should replace Noble as operator from its website amid speculation that fresh delays could set in and that signature for production sharing contracts and joint operating agreements on the other blocks offered under the second JDZ round blocks 2, 3, 5 and 6 will get postponed until 2006.
Houston-based ERHC Energy already has a memorandum of understanding with Addax to partner it in Block-4 and pick up Noble's commitment to pay a $90 million signature bonus and carry out a three-well drilling programme in the first exploration phase.
It is understood that Sao Tome and some Nigerian elements had complained that due process had not been followed and that the Joint Ministerial Council had not been consulted.
Under a preferential rights deal, ERHC is carried and can avoid paying any part of the signature bonus, leaving any partner-operator necessarily concerned about the capacity and willingness of Nigerian independents to pay their portion and find their share of initial exploration costs in a timely manner.
It is understood Noble was worried about this aspect and wanted to tighten terms to force penalties on defaulting partners.
Anadarko Petroleum bid highest and was originally Sao Tome's favoured candidate for Block-4, but has not been canvassed by the JDA to return to the fray.
A rebid would take another month to organise and most players see direct talks with original bidders as the likeliest way forward if Addax the fourth highest bidder is not confirmed.
Fellow bidder Centurion Energy of Canada has not aggressively pursued operatorship in the wake of Noble's departure and Nigeria's Conoil, already awarded 20% of Block-4, would be challenged to match Addax's financial resources.
Other equity holders on the block include independents Godsonic Oil&Gas, Hercules Petroleum and Overt.
Since the Nigerian side wishes to swiftly conclude the round and move on, many believe the Addax bid will still win out once the dust settles on this latest fracas.
Besides, Nigeria's Petroleum Minister Edmund Daukoru would have to convincingly propose any rejection directly to President Olusegun Obasanjo at this late stage.
Meanwhile, talks are proceeding with other suitors for remaining blocks awaiting PSC signature.
An Iranian joint venture between Oil Exploration Operations Company (OEOC) and ICC (together holding 75% of Block-5), alongside local indie Sahara, has committed a vessel to undertake seismic on the block.
However, the ability of other minnows awarded participation on other blocks to cough up signature bonuses and post performance bonds remains uncertain.
**UPSTREAM** NOV 18 2005 JDZ
Chevron takes aim with drillbit
US supermajor Chevron aims to spud its debut well in deep-water Block-1 in the Nigeria-Sao Tome Joint Development Zone next month.
With committed signature bonus payments still an issue bedevilling the final equity breakdown of remaining JDZ blocks awarded under the just-concluded second round, all eyes are focused on this first well to test the potential of the Gulf of Guinea deep.
Earlier reports indicated caution on the part of the supermajor that drillship scarcity could postpone the probe until the second quarter of next year.
However, it is understood that a unit has now been sourced and the 60-day well is scheduled to start before Christmas.
JMC story now on AllAfrica
http://allafrica.com/stories/200511170172.html
Obiora: Our Role in Sao Tome
This Day (Lagos)
Posted to the web November 16, 2005
Lagos
Onyebuchi Ezigbo spoke with the Executive Director Inspection and Monitoring Engr. Samuel Obiora on Resource Development strategy of the Nigeria/Sao Tome and Principe Joint Development Zone (JDZ) in Abuja
What is JDZ all about?
The Nigeria/Sao Tome and Principe Joint Development Zone (JDZ), defined by formal bilateral Treaty, is an area of overlapping maritime boundary claims that is being jointly developed to the benefit of the two countries. The JDZ lies between Latitudes 1 and 3 degrees north and longitudes 4 and 8 degrees east in the Gulf of Guinea. It covers an area of 34,548 km2 with water depths ranging from about 1500m in the northern part of the JDZ to over 4000m at its South-Western sector.
Joint Development is not unique to Nigeria and Sao Tome & Principe. Several Joint Zones are found in other parts of the world. An example is the Australia Indonesia Joint Development Zone in the Timor Gap. Joint Development Zones derive their legal basis from International law, the law of treaties and specifically the United Nations Convention on Law of the Sea, UNCLOS.
The Nigeria/Sao Tome & Principe Joint Development Zone is an emerging offshore horn of plenty that will add to the proven West African frontier potential.
The Atlantic margin location of the Nigeria/Sao Tome and Principe Joint Development Zone is strategically significant to the world in terms of future petroleum supply alternatives to the Middle East. Gulf of Guinea is without doubt, one of the most prolific oil and gas provinces in the world. In this respect, the JDZ with its central location in the Gulf of Guinea offers an excellent opportunity for investors in the oil and gas industry. Indeed, one of the major discoveries in the Deep offshore of the Niger Delta, the Akpo Field in Nigeria, is situated about 20 kilometres from the northern tip of the JDZ. Indications from the interpretation of regional seismic surveys point to the extension of the Niger Delta Development Zone. It has highly prospective acreage that is within the reaches of today's technology.
Within Niger Delta, there are also Nigeria's Bonga and Agbami deep offshore discoveries amongst others. In Equatorial Guinea, we have the Zafiro, Alba and Ceiba discoveries. So also are there Kizomba, Girassol and Dalia in Angola to the South.
How is Joint Development Authority (JDA) Grappling with the Exploitation of Oil and Gas Resources in the Zone?
The countries of the region have been able to attract investors to their respective oil and gas industries through the establishment of good working partnership and putting in place, safe political environment and appropriate fiscal terms. Such will be the guiding attraction of would-be investors to the JDZ. Already, the Nigeria/Sao Tome & Principe JDA has awarded ChevronTexaco the right to conduct exploration activities in deepwater JDZ Block 1. The fiscal terms negotiated as part of the PSC for JDZ Block 1 will form the basis for future PSC terms in the JDZ.
Over the course of the past few years, West Africa/Gulf of Guinea has experienced a dramatic change in terms of its standing in the offshore world. The region has progressed from an exploration hot spot where deepwater discoveries were being made in seemingly monthly basis, to the centre of development activity. This is even usurping the Gulf of Mexico in terms of billions of dollars pledged in relation to the number of projects. A large increase in capital investment is expected over the next four years.
As fields in the Gulf of Guinea and offshore Angola move into production, new explorations will be taking off in areas such as the Nigeria/Sao Tome & Principe JDZ.
Can you throw more insight on findings so far as regards oil and gas potentials in the zone?
The Gulf of Guinea currently holds about 10 percent of the world's known oil reserves and is largely unexplored.
The Nigeria/Sao Tome JDZ is a truly frontier region with a fairly understood oil and gas province. Developments in technology and geological understanding of the region would combine to significantly increase success rates. Approximately 30 leads and prospects, essentially structural in nature have currently been identified in the JDZ. Seismic sections show excellent reflection amplitudes with several prospects presenting stacked objectives. Flat spots indicative of fluid contacts have been identified on several of the prospects. This translates into considerable reduced risks on the part of the investors. It is in this light that royalties are part of the PSC. These royalties are however conceived on a sliding scale, ranging from zero to five percent.
Explain the process adopted in awarding oil bloc ?
The first process of acreage allocation in the Nigeria/Sao Tome and Principe JDZ began on August 23, 2003. That opened the 2003 NDZ Licensing Round for nine (9) blocks (Blocks 1 to 9). At the expiration of the deadline, 33 bids were received from 20 oil firms: both multinationals and indigenous companies. Block 1 with surface area of 704 sq. km. Was subsequently awarded to ChevronTexaco as the operator with 51% interest and Esso Exploration and Production Niger-Sao Tome (One) Limited ("ESSO") and Dangote Equity Energy Resources ("DEER") with participating interests of 40% and 9% respectively. Other Blocks were not awarded in that round due to lack of technical and commercial competence on the part of the companies.
Relevant Links
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West Africa
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Thereafter, Blocks 2 to 6 were offered for bids in the 2004 JDZ Licensing Round. The fiver blocks form part of the blocks that were not awarded in the 2003 Licensing Round and would be awarded soon. Block 1 to 6 have total surface area of 4,568 sq.km., hence 13.2% of JDZ. Consequently, award of blocks 1 to 6 would leave 86.8% of JDZ for future investors.
The PSC has been signed for Block 1 and the signature bonus due for payment on or before 22nd April 2005. As earlier indicated, the fiscal terms of the PSC for Block 1 will form the basis for future PSC terms in the JDZ.
BSK, good post but you forgot to mention 1 driving force
STP is flat BROKE in debt and in dire straits
need $$$$$$$ yesterday, can afford to delay years more,
remember this was ALREADY the 2nd BID round for the 1st round
this factor may be enough push ahead
lots of uncertainty still
good to see ERHC got back up with Addax and new auditor lickity split
from the research posted thus far it seems doubtful they have enough evidence to thwart the round but this is Africa
Marks last call to Sam Dimka last week indicated there would be signings in NOVEMBER, all can understand a small delay in BL 4 even though a condition was to adhere to the current timeframes ?
breaking their own rules