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of Note
I spoke to ERHC IR in some depth-
same info as Art reported nothing new
however PSC announcements may not come from ERHC directly they may come specifically from the Operator as per the agreements
Homeport I would have liked to hear the PSCs were going more smoothly and are basically wrapped up, which they should be at this point
sounds like [as BM went to press]
there still are some issues pending as they enter the final PSC stages
the New items...
Locals having trouble with cash requirements
Mid Tiers may be offered bigger slices
New legal standards being implemented on participation
Nigeria may not cooperate in the probe [we assumed]
ERHC Carried [not clear in what blocks] perhaps all
although I agree BM offered no great breaking news
we fell more reassured the process is continuing and ERHC stands to be crowned the giant winner of the 2nd round
HDY moving up nicely ... looks they may resolve the GoG dispute
this only bodes well well for ER
The Eagle, the Dragon and African oil
China Business Oct 12, 2005
http://atimes.com/atimes/China_Business/GJ12Cb01.html
By Chietigj Bajpaee
With oil prices hitting record levels of US$70 per barrel in recent weeks, major energy consuming countries are engaging in an increasingly heated competition for energy resources on the world stage.
Nowhere is this more evident than between the United States and China, the world's first and second largest energy-consuming countries respectively. In the contest for energy resources, numerous "stages" of competition are emerging, including the Middle East, Central Asia, Latin America, and the East and South China Seas. Africa is fast emerging as one of the most volatile of these stages, given its vast reserves of energy
resources and concentration of internal security crises.
Africa owns about 8% of the world's known oil reserves, with Nigeria, Libya and Equatorial Guinea as the region's leading oil producers. 70% of Africa's oil production is concentrated in West Africa's Gulf of Guinea, which stretches from the Ivory Coast to Angola. The low sulphur content of West African crude makes it of further strategic importance.
However, the region is also vulnerable to instabilities ranging from piracy to terrorism, interstate and tribal conflict, AIDS and political uncertainties. Given the weak governments and significant Muslim populations of the region, the African continent may also emerge as a hub for al-Qaeda-linked terrorist groups.
Finally, oil-rich countries in Africa have been unable to escape the "curse of oil," which has fueled corruption, conflict, and environmental degradation across the region. For instance, while Nigeria has earned $300 billion in oil revenues over the last 25 years, per capita income remains below $1 per day. Nigeria is also subject to ethnic violence, oil strikes and sporadic attacks on oil infrastructure by the Niger Delta People's Volunteer Force. Adding Sino-US energy competition to this volatile mix could further destabilize the region.
US-African energy relations
The US currently derives 15% of its oil supplies from Africa as compared to 22% from the Persian Gulf. Within the next ten years, the US could be depending on Africa for a quarter of its oil supplies according to the US National Intelligence Council.
Nigeria alone is the fifth biggest source of US oil imports with the United States accounting for half of Nigeria's oil exports. Washington has also re-established its historically important diplomatic and energy relations with Libya, following the removal of economic sanctions in September 2003 after Libya abandoned its nuclear weapons program.
In addition to securing energy supplies in the region, the US has a burgeoning economic relationship with the region and has been increasingly concerned with Africa's security situation, political freedoms and human rights record. US-Africa trade stood at $44.5 billion in 2004, with oil-rich Nigeria being the second-largest destination of US investment on the continent after South Africa.
Since the September 11 attacks, the US has also stepped up security cooperation with African states. The US Coast Guard has increased patrols of the region as well as engaged in training, intelligence sharing and public relations exercises with numerous states including Sao Tome and Principe, Cape Verde, Ghana, Benin, and Equatorial Guinea.
Meanwhile, the US State Department's Trans-Sahara Counter Terrorist Initiative has trained troops in Niger, Mauritania, Mali and Chad. Since the September 11 incident, the US has also maintained a military base in Djibouti, from which it coordinates anti-terrorism operations on the continent. Nevertheless, with military assets tied up in Afghanistan, Iraq and the Persian Gulf, the US has not been able to devote the necessary attention to Africa, which in turn has allowed other countries such as China to make further inroads.
Sino-African energy relations
China currently derives a quarter of its oil imports from Africa, with oil interests in Algeria, Angola, Chad and Sudan and increasing stakes in Equatorial Guinea, Gabon, and Nigeria. China's energy interests in Chad are of particular interest, given that Chad still maintains diplomatic relations with Taiwan.
China's growing energy partnership with Sudan represents one of a number of areas where Sino-US energy interests diverge in Africa. China National Petroleum Corporation (CNPC) established oil exploration rights in Sudan in 1995. Two years later, when Washington cut ties with Sudan, China filled the vacuum, making Sudan China's largest overseas production base. More than half of Sudan's oil exports go to China, accounting for 5% of China's total oil imports. CNPC owns a 40% stake in the Greater Nile Petroleum Operating Company and pumps over 300,000 barrels per day in Sudan. Another Chinese firm, Sinopec, is constructing a 1500 kilometer pipeline to Port Sudan on the Red Sea, where China's Petroleum Engineering Construction Group is building a tanker terminal.
As in the case of US relations with Africa, China's relations with Africa are multidimensional. However, in recent years China's political, economic and military relations with Africa have been subordinated to its quest to secure energy resources in the African continent as energy resources are being secured in exchange for aid, arms or infrastructure investment. China's goodwill with African states can be traced back to its support for anti-colonial struggles in the 1960s. However, China's relations with Africa have shifted from holding a strong ideological bias in support of communist regimes and Marxist insurgencies, to being led by market and resource considerations.
Today the only ideological component to Sino-African relations is the "One China" principle, although there are even exceptions to this, as seen in the case of growing Chinese energy interests in Chad, which still has diplomatic relations with Taiwan. At present, only seven African states hold diplomatic relations with Taiwan. African states are also drawn to China by its non-ideological, non-interventionist approach, which contrasts with the Western approach that places an emphasis on democracy, governance, human rights and humanitarian intervention.
China has also appealed to Africa through numerous goodwill gestures. For example, the Chinese foreign minister has maintained a policy of making his first official overseas trip to the African continent every year. For decades, China has also supported numerous infrastructure projects across Africa, as well as sending doctors and nurses to the region, establishing scholarships for African students to study in Chinese universities, providing training to African businessmen and trade officials, and supplying funds to encourage Chinese businesses to invest in Africa.
China also maintains dialogue with Africa through several bilateral and multilateral forums such as the Asia-Africa Summit and the China-Africa Business Council, which was jointly established with the United Nations Development Program in November 2004 to support China's private sector investment in Cameroon, Ghana, Mozambique, Nigeria, South Africa and Tanzania. In 2000, China also initiated the China-Africa Cooperation Forum, comprising 46 of the 53 African countries. Among its accomplishments is canceling $1.2 billion in debt for 31 African countries. China is also engaged in negotiations to create a free trade area with the Southern African Customs Union, as well as coordinating with African states in international organizations such as the World Trade Organization and the United Nations.
On the economic front, Sino-African trade increased by 50% between 2002 and 2003 to $18.5 billion, a total expected to grow to $30 billion by 2006. At present, 700 Chinese companies operate in 49 African countries and eight African countries have been granted the status of "officially approved travel destinations" by China. China has also expanded its military presence in the region, as seen by its deployment of peacekeepers to Liberia in December 2003, which occurred two months after Liberia switched its diplomatic recognition from Taiwan to China. China has also sent a peacekeeping contingent to the Democratic Republic of Congo, as well as providing uniforms to Mozambique's army, helicopters to Mali and Angola, and weapons to Namibia and Sierra Leone.
Many of China's diplomatic initiatives in Africa are in direct conflict with US policy toward the region. For example, Beijing supplied $1 billion in arms to both Ethiopia and Eritrea during their war from 1998 to 2000. Zimbabwe's President Robert Mugabe, whose regime has been isolated from the West due to its forced eviction of slum dwellers, confiscation of white-owned farms, and use of violence and intimidation against political opposition, has also turned to the Chinese regime for aid. Chinese investment in Zimbabwe amounted to $600 million in 2004. China has upgraded Zimbabwe's transport infrastructure, provided roofing material for Mugabe's $9 million palace, and provided the regime with Chinese-made Karakoroum military trainer jets, MA60 passenger planes, and radio-jamming equipment for a military base outside Harare, which has been used to block transmissions by opposition parties.
China is also one of Sudan's leading arms suppliers. Sudan is the largest recipient of Chinese overseas investment, and up to 10,000 Chinese nationals work in the country. The Sudanese government, which has recently concluded a peace agreement with the Sudan People's Liberation Movement/Army (SPLM/A) in the south, is still engaged in a conflict in the Darfur region of western Sudan using proxy militias such as the Janjaweed. In 2004, the UN Security Council was forced to water down a resolution condemning atrocities in the Darfur region to avoid a Chinese veto. China abstained in the vote over the final weaker resolution. With Sudan and Iran together supplying China with 20% of its oil imports, US attempts to contain these regimes bring it into direct confrontation with China's energy security policies.
The United States and China are not the only states vying for energy resources in Africa. Recently, Korea National Oil Corporation obtained 65% oil and gas production rights in two Nigerian offshore blocks, while India's Oil and Natural Gas Corporation Videsh obtained a 25% stake. South Korea and India are the world's fourth and sixth largest energy consumers respectively. India and China both hold stakes in the Greater Nile Oil Project in Sudan, with India having invested $700 million in Sudan's oil sector. China and India have also been engaged in direct competition for African energy resources, as seen in October 2004 when China outbid India to buy an interest in an offshore block in Angola.
Conclusion
Sino-US relations are going through a cold spell as a result of disputes over US quotas on Chinese-made textiles and China's military expenditures, exchange rate policy, intellectual property rights infringements, human rights record, and relations with dictatorial "rogue" or anti-US regimes including Iran, Myanmar, Nepal, Uzbekistan, and Venezuela. The recent postponement of the much-anticipated meeting between Chinese President Hu Jintao and US President George W Bush in Washington as a result of the relief efforts for Hurricane Katrina is seen as likely to add insult to injury among some in Beijing.
While there have been gestures of rapprochement in Sino-US relations, such as the recently initiated Sino-US Strategic Dialogue and the establishment of an energy partnership called the Asia Pacific Partnership on Clean Development, established by the two states along with India, Australia, Japan and South Korea, the competition to secure energy resources on the world stage could add further tension to their already shaky relationship.
The recent failed bid by Chinese energy company China National Offshore Oil Corporation to acquire US energy company Unocal is evidence of this. Facing a plethora of internal crises ranging from poverty to poor governance and civil war, Africa is likely to emerge as a volatile stage of Sino-US energy competition. African states have been drawn to China by its non-interventionist, non-ideological approach in conducting relations, although China's attempts to secure energy resources in conflict-ridden states by offering aid or arms-for-oil could heighten instability in the region.
Chietigj Bajpaee is a researcher for Civic Exchange, a Hong Kong-based public-policy think-tank. He has been a researcher for the London-based International Institute for Strategic Studies and a risk analyst for a New York-based risk management company. Areas of interest include energy security and political, economic and security developments in the Asia Pacific region. The views expressed here are his own. He can be contacted at c.bajpaee-alumni@lse.ac.uk.
Published with permission of the Power and Interest News Report, an analysis-based publication that seeks to provide insight into various conflicts, regions and points of interest around the globe. All comments should be directed to content@pinr.com
another 50k buy - some decent nibbles today
perhaos PROCON your bottom may be in place -
regardless should be an interesting next 4 weeks, interesting D/Bucks is working on the [multiple] PR's and Web Cast?
I'm leaning towards the probe being swept over, just cant see OBJ being pushed around,
Whats the big deal if a few Nigerian locals get some crumbs, how else would they ever get a chance
look at Cheney and Haliburton [it's all who ya know]
G-D bless them
Art did you ask about the Mid-2007 Drill Schedules [reported by Anadarko / Centurion] or the potential impact of this awards investigation probe gathering momentum.
What was her overall feeling
Since she came on board the PPS has dropped 70%
We were better off with out her
- thanks for calling however
Procon that may be true but it's the continued DARK CLOUD of uncertainty that again continues to consume this stock
Homerun potential, no doubt, BUT ...
if it's not the endless fortnights, it's our management mis-managing our shares, or it's a foreign Gov't or agency sticking it to us.
always one foot over the edge
Bottom line it's never been easy to play ERHC/ERHE and may explain the limited buying interest even as we sit at 2 year lows with 2 Billion Estimated BBLS of OIL
unreal ...
MORE BS, sounds like major issues now - these investigators are messing with us
a] Voiding the round
b] Nigerian Firms skipping on Sig. Bonuses
c] Operators potentially carrying the minnows
d] Operators reducing the drilling
Sao Tome: Legal eagle takes on Nigeria
7 October 2005
Energy Compass
English
(c) 2005 Energy Intelligence Group. All rights reserved
The attorney general of tiny Sao Tome and Principe will put Nigeria on the spot this weekend with plans to request its help with an investigation into awards on five blocks in the joint development zone (JDZ) between the two countries. Adelino Pereira began his own investigation last month and has already disturbed several Nigerian companies that did well out of the awards. If the probe gathers force, it could lead to the bid round being voided, or at least prompt some US companies to reassess their positions, sources say.
The second-round awards, announced in May, are controversial for many reasons, not least the preponderance of apparently ill-qualified players linked to Nigerian power brokers and, to a lesser extent, Sao Tomean political elites (EC Jun.10,p5). An investigation launched by Sao Tome's National Assembly earlier this year found decisions were made without supporting documentation or legal opinions, and lacked respect for established processes. Pereira's probe, aided by prominent US oil lawyer Robert Langenkamp, will look further into the legalities.
Pereira is a force to be reckoned with at home, but taking on regional powerhouse Nigeria is trickier. The Nigerian government, which is keen to collect the JDZ signature bonuses, persuaded Sao Tome President Fradique de Menezes to approve the award recommendations in May by threatening to withhold Sao Tome's share of the signature bonus on Block 1, the only award in the first licensing round in 2003-04. But Pereira has a couple of cards up his sleeve. Nigerian President Olusegun Obasanjo has been making a big show of reducing corruption to persuade Western governments to write off Nigeria's debt. If Nigeria were to block the investigation, creditors who suspect Nigeria's transparency drive is oversold might not implement a tentative deal to wipe off up to $18 billion in debt.
Sao Tome's allies, who carry some weight in the world of aid and debt, will use whatever cards they can. They include Columbia University's Earth Institute, headed by prominent development economist Jeffrey Sachs, and the Open Society Institute of George Soros. The Earth Institute is highly influential in Sao Tome, drafting much of its revenue-management law last year, and helped recruit Langenkamp, who is working for free with expenses paid by the Open Society (EC Dec.3,p5).
The main beneficiary of the round was ERHC Energy, which has rights to stakes in six blocks under an earlier bilateral accord between Nigeria and Sao Tome but little capital or track record. This week, supporters of the US-listed firm, which is owned by Nigerian businessman Emeka Offor, an Obasanjo ally, tried to undermine the investigation by linking Langenkamp's assistance to interests close to US Anadarko, a disgruntled bidder for Block 4. Anadarko was the highest bidder with $90 million, but was pushed into the less prospective Block 3 to make way for ERHC and Noble Energy, which secured 60% of Block 4. ERHC also won 65% of Block 2 through a partnership with US Pioneer. Langenkamp has denied the allegations.
Under pressure from Nigeria, the Joint Development Authority (JDA) approved stakes for at least nine Nigerian companies. The move was controversial, as none of the firms has deepwater experience and some exist only on paper. Winners included Conoil, an experienced producer, set to partner ERHC/Noble on Block 4; A Hatman, which is linked to Obasanjo's political fixer, Chief Antony Anenih, and will join ERHC/Pioneer on Block 2; Equinox, owned by influential Nigerian businessman Mohamed Asebelua and Sao Tomean Isabel Meira Rita, who is linked to former president Manuel Pinto da Costa, won 10% of Block 3. Other beneficiaries included Godsonic, Overt, Broadlink and Filtim Huzod.
The ace in the investigators' pack is lack of due diligence about Nigerian players' financial and technical capabilities. London-based Clearwater did investigations for the first bid round, when it highlighted several gaps in credentials. What happened in the second round is more opaque. Nigerian officials maintain the JDA appointed two Nigerian investigators, Arrowhead Consulting and Suleiman Associates. But the National Assembly's report said this year's evaluations were based on the first round, and did not incorporate new participants or changes to the financial status of existing players.
The issues worry established operators that are pressured to take on such partners. All are wondering whether the partners will come up with their shares of signature bonuses and budgets. With production-sharing contracts due to be inked in mid-November, operators have just five weeks to secure the money. If their new best friends fail to pay up, operators will have to choose between carrying the costs of partners, buying them out or refusing to sign the deals. Other options include reducing their drilling plans -- precisely the outcome feared by Sao Tome's regulator, the National Petroleum Agency, which warned in May that investment could suffer if operators were forced to carry so many partners.
By Christina Katsouris, London
ART. Noble said mid 2007 as well
Mid 2007 - JDZ Drilling re UPSTREAM
somewhat related ...
Mvelphanda Holdings strengthens upstream hand
BLACK economic empowerment combine Mvelphanda Holdings looks set to strengthen its African upstream position this year as several new deals kick in, writes Barry Morgan.
The South African group already controls Ophir Energy, which now manages Mvelphanda's stake in Forest Oil's Ibubhesi gas field on Block 2a off the Western Cape.
Tanzania aims to finalise deepwater PSCs in the Indian Ocean before the end of the year but Ophir hopes to have its own bid for Block 1 signed by the end of this month. Ophir is targeting marine acreage off the southern coastal settlement of Mtwara.
Ophir's first foray into Nigeria was successfully concluded following the last licensing round in which it partnered local independent Ashburt Petroleum in bidding for deep-water Block OPL-325 off the Niger Delta. Ashburt's owner has strong links with seismic outfit Veritas. Also in OPL-351 is Nigerian downstream independent Oando Petroleum, which has been keen to extend its reach into the upstream sector.
Ophir also qualified for Block OPL-251 with Nigerian National Petroleum Corporation subsidiary, the Nigerian Petroleum Development Company. Also in the line-up is Refinee PetroPlus, a company linked to local downstream player Sahara Energy.
On both licences it is understood Ophir is angling for 30% equity and possible operatorship of one licence. Ophir earlier this year landed 4% of Block 3, operated by Anadarko Petroleum in the Joint Development Zone managed by Nigeria together with neighbouring Sao Tome that group is expected to sink the drillbit in mid-2007.
Homeport there are some fresh STP TELE NON stories re: corruption - perhaps there are some better translations
Tense Political situation in Saint Tomé and Prince THE minister of the Business Foreigners and Cooperation came this week try to clarify the apparently contradictory statements of the president Fradique of Menezes (in the picture) with the of the chief one of the executive, Maria of the Carmo Silveira from the question of the eventual increase of the corruption in the archipelago.
But this can be barely the tip of the iceberg.
There are sensibly two weeks, Fradique of Menezes guaranteed to the press that had been alerted by the World Bank of the increase of the corruption in Saint Tomé and Prince. But to the arrival of a visit to New Iorque, United States, Maria of the Carmo Silveira, found strange the origin of the facts before advanced by the leader of state.
It guaranteed even that, of the meetings maintained with the World Bank, this question never outside approached. It was more distant and said that for the American north authorities, the islands are it exercise an I control efficient about the corruption.
“Of fact you president was not in Washington with the World Bank and with the International Monetary Bottom for discuss the matter corruption, as was not in Washington did not speak with the World Bank and with the FMI and never would be able to speak by that about the corruption”, guaranteed the minister of the Business Foreigners and Cooperation, Ovídeo Small.
The minister Ovídeo Small explained that the question of the corruption was approached yes, but in a meeting between the rulers are-tomenses with the responsible of the initiative Millenium Challenge Account.
“What is passed is that alerted us that the indices that we had immediately that legible for this programs, were high and they noticed that there is today a light decrease in ours I control of the corruption”, explained the captain of the paste of the Business Foreigners.
Dependable spring guaranteed in the however to the Téla Nón that the relations between the two organs of sovereignty already were not the best before of this polémica. Because of that, Fradique of Menezes moved away the minister of the Oils of the charge of leader of the delegation are-tomense in the ministerial commission assembly of the oil, and assigned in his place, the captain of the paste of the business foreigners, Ovídeo Small, man of the its confidence.
But the break looks do not exist barely in the relations between these two organs of sovereignty. Because of the last public interventions of several political actors and of the national society, as well like of the president of the Most supreme Court of Justice about him referring to the system of government, the president are-tomense had agendado for this afternoon a communication to the country.
To what does everything indicate, for clear to polémica referring, and approach to suspeição created to the return of the ascent or not of the indices of corruption in the islands. However, the more high magistrate of the nation remitted to his communication for date it assign.
oilman - you forgot lack of buying / interest and support
US must be desperate for OIL ...
Florida - www.sun-sentinel.com
FL Gov. Bush, congressional Republicans push to open eastern Gulf to oil and gas rigs
By William E. Gibson
and Tamara Lytle Washington Bureau
Posted October 6 2005
WASHINGTON · With input from Gov. Jeb Bush, Republican members of Congress are negotiating a deal that would open parts of the Gulf of Mexico to energy drilling in exchange for a permanent 125-mile buffer from oil and gas rigs along the state's shoreline, the chairman of the Florida congressional delegation confirmed Wednesday.
U.S. Rep. Clay Shaw, R-Fort Lauderdale, said the compromise would be a good deal for Florida, especially along the east coast where no ban now exists.
But the emerging deal, still a work in progress, has divided the once-unified Florida delegation in the House of Representatives, with some members adamantly opposed to opening any of the tracts now excluded from energy exploration. Sens. Bill Nelson and Mel Martinez remain opposed to drilling in the Gulf.
South Florida Rep. Mark Foley and most Democrats say now is not the time to compromise away areas now covered by a federal moratorium on drilling.
But growing support in Congress for opening up the eastern Gulf to more drilling has increased pressure on Floridians to cut a deal.
"There's pressure now for more energy, and there are many who believe the Gulf should be fair game," Shaw said. "We've been fighting them off for years, but with the price of oil going up the way it has, this makes it more and more difficult to hold on to that moratorium in the Gulf."
Shaw said Florida lawmakers and the governor's staff have been working out an offshore deal that could be added to other legislation in coming weeks. The agreement would allow Florida to opt out of any drilling within 125 miles of its waters. Drilling farther than 125 miles would be allowed, including areas of the eastern Gulf that have been off limits in the past.
Bush and Florida lawmakers have said they are concerned, however, that the bill does not bar an inventory of offshore oil and gas reserves, which would include seismic testing, and does not charge the federal government with buying out existing leases close to Florida.
"If we can get the issue regarding seismic testing and authority to buy back existing leases, this, I think, would be a sizable victory for Florida," Shaw said.
"If this can be worked out, we can get protection for the east coast for the first time."
The protection of Florida's Atlantic coastline represents an unnecessary compromise for Rep. Debbie Wasserman Schultz, D-Weston, who opposes the deal.
"I don't know why we have to trade the Gulf for protection of the eastern coast," Wasserman Schultz said Wednesday. "That's like asking me to choose which of my children I should give away."
Energy companies have yearned to explore the eastern Gulf in the hope it contains large deposits of oil or natural gas. The east coast of Florida is considered less potentially productive, partly because of the cost of deep-water drilling.
Shaw noted that the current ban on drilling in the Gulf, established by presidential decree, comes to an end by 2012, whereas a ban enacted into law would have no end. He acknowledged, however, that what Congress determines now could be taken away in a future session.
Rep. Mark Foley, R-Jupiter, a deputy House whip, took part in some of the behind-the-scenes discussions but has backed away from the emerging deal.
"I do not want to make deals right now," Foley said. "We should stay strong, stay resolute, and not give up by negotiating against ourselves."
Opponents say even a 125-mile buffer along the Florida shoreline might not prevent environmental problems that would hurt the state's tourism industry. Also, they argue, allowing drilling there would encourage energy companies to drill even closer.
Politicians who favor the deal say it gives Florida permanent control closer to its shores, offers new protections to the state's Atlantic coast and bows to the reality of national pressure for more domestic energy supplies.
The governor made it clear in an interview Tuesday he likes the idea, which is part of a bill by Rep. Richard Pombo, R. Calif. The bill was sidetracked Monday when Florida's Congressional delegation united in opposition to an amendment that would have allowed drilling close to shore to begin immediately.
"I think it's important to strive to get something similar to the Pombo bill without the amendment that was a poison pill. Allowing for the state to continue to opt into a moratorium with the Legislature and governor approving it is an excellent long-term solution," Bush said Tuesday.
His office, however, complained Wednesday about a story in the South Florida Sun-Sentinel and the Orlando Sentinel saying he had changed his position on the issue of drilling.
"Gov. Bush remains committed to providing at least 100 miles of lasting protection from the threat of offshore development around the entire coast of Florida," said Alia Faraj, the governor's communications director.
But an April 2001 letter from Bush to U.S. Interior Secretary Gale Norton shows he previously had fought for banning drilling in a much broader area than just a 100-mile buffer.
"My position has been that there should be no such activity in the entire eastern Gulf," Bush said in that letter.
Faraj sent out a letter Wednesday that outlines Bush's two objections to Pombo's bill. He did not object to the part of the legislation that would allow drilling outside of 125 miles.
Pombo's staff members said they plan to offer the original bill to allow drilling outside the 125-mile buffer, either on its own or as part of a budget bill.
Meanwhile, congressional sources said that Senate Energy Committee Chairman Pete Domenici, R-N.M., started collecting signatures of colleagues in support of exploration in Lease Sale 181, which is more than 200 miles west of Tampa. According to staffers in Florida Sen. Nelson's office, Domenici sent a letter to Norton citing the need to expand drilling in Lease Sale 181 because of a growing energy crisis and problems brought on by Hurricanes Katrina and Rita.
Domenici could not be reached late Wednesday.
agreed, and it's not every day a Penny OTC BB [contracts] partners with Fortune 500 companies in one of the world's most prolific O&G regions when oil is the hottest ticket going
hopefully PXD can drill in 2006
hopefully Chevron will find an elephant this Dec. or early '06
all will help our needed cause
----------------------
on the recent pps action [or lack there-of]
it appears the big seller is not interested in these sub $.40 levels and only a few are selling here, hence the very low volume... [good news]
[bad news] is the interest level at this point is nill
we need the ERHC buzz again to encite buyers
we should get great news coverage upon contracts from all parties Inc. our partners and consortia, regional news etc.
not anticipating anything coming from the awards probe
BB Gomes hinted BL 2,3 are basically DONE !!
That sounds like few outstanding issues on those 2
Can't see why the JDA/JMC would want to delay Sig Bonuses any more than they already have
remember this was the 2003 round, cancelled in 2004
awarded in 2005, $$$$$$ money promised end of 2005
if we were 6 months away from PSCs/JOAs .28-.32 may be realistic trading range
but now
only a couple weeks now till news may be a challenge
true there are other gainers to play while we wait
but in onl a few short weeks
ERHC will have the biggest news of their history
PSCs in up to 5 JDZ Blocks [at least BL 2,3]
lots of press / lots of interest / lots of buying
more validation
I'm sure by PSC/JOA time there will be some renewed enthusiam and plenty of fresh PR's for Ms. Bucks to distribute as this is BIG OIL and affects many companies big and small.
Who knows maybe a Wall St. Journal Story.
Still wont change the fact we have Zero Proven Oil, and Zero revenue,
however
I liked Centurion Energy's [TSX:CUX] Est. of 2.5-3.5 BBs of Oil in BL 4 - wow
and to think they are excited with only 7.5% !!!!!
Cobra, would you want some one else living in your house prior to you taking posession?
Only the operators drill. We are at their mercy.
the Rig shortages are gonna slow us up it appears
lets pray PXD can drill in 2006
or
the word DEAD MONEY may take on a new meaning if it hasn't already
Anadarko to drill JDZ in 2007
West Africa www.anadarko.com
Anadarko has accepted a block award and operatorship of Block 3 in the Nigeria-Sao Tome Joint Development Zone.
Exploration and well planning efforts are underway for 2007.
Noble hopes to drill JDZ BL 4 in mid-2007
In the september 28th Conference Reports (part one) http://www.oilbarrel.com/home.html
Amy McLellan writes in the introduction to the Centurion presentation:
Egyptian gas isn’t the only story at Centurion. It also holds exploration acreage in Tunisia, where a rig is now moving onto location to drill the offshore Amira prospect, and in the Joint Development Zone between Nigeria and Sao Tome & Principe. The latter, Arrata explained, has the claim to fame of being the third smallest island in the world and he admitted he didn’t know where it was either until Centurion’s exploration manager got them interested. The company has a 7.5 per cent net stake in Block 4 in the JDZ, quite a coup for the AIM and TSX-listed firm.
“This is a hot area,” said Arrata. “All the big boys bid on these lands, with Chevron bidding US$132 million for the block to the north of us.”
The signing bonus on Block 4 was US$90 million, which reflects the prize thought to lie under these Gulf of Guinea waters. “We have mapped six prospects on this block, with a combined reserve range of 2.5 to 3.5 billion barrels and two of those prospects contain half of those reserves,” said Arrata. “This is why the big boys are after it.”
The operator Noble Energy hopes to start drilling in mid-2007: success here could really catapult Centurion into a different league.
- - - - -
1.6 MM traded now only up $.015 -
anyone else see find this troubling
Prophetti - your dilution theory may hold true, we know ERHC needs min. $5 MM for BL 5 Sig. Bonus - where is $ coming from
seems unlimited shares are available to buy ERHE
seems like NITE / SCHB and the rest have an UNLIMITED supply of shares perhaps FAB selling, perhaps Shorting
very frustrating seeing 1.5 mm shares trade and only up $.02
the same trading pattern has gone on for months
IMO until "The Street" takes interest - I predict much of the same BS
FYI - if there is a BUY IN offer - where is the support?
African oil nations must fight corruption, says WPC head
September 30, 2005
Johannesburg - Oil-rich African countries must get rid of their "culture of corruption" if they wanted to attract foreign investment, Eivald Roren, the president of the World Petroleum Council (WPC), said yesterday.
"Countries must be entirely transparent ... This brings us to the issue of corruption, a special form of cancer which you unfortunately find in many African countries," the WPC president said. "It tends to set the brakes on the investment climate."
Roren said there seemed to be "complete agreement" among the 4 000 delegates who attended the five-day gathering that corruption was a serious problem in oil-rich African countries.
"This is very crucial because it takes time to deal with. It's a certain culture, not only in Africa, but it is here," said Roren.
Eivind Reiten, the chief executive of Norwegian oil and gas company Norsky Hydro, told delegates that corruption costs the world more than $1 trillion (R6.36 trillion) annually.
He said the world's energy industry dealt with ethical dilemmas on a daily basis.
"The demands of business and society are interdependent. Businesses cannot be successful in societies that fail," Reiten said, according to Sapa.
South African WPC board member Zellah Fuphe said more funds were being made available to create the right environment for investment in Africa.
African oil producing countries provide 8 percent of world oil output, with Nigeria leading the pack as the world's 12th-largest producer.
About 85 percent of African oil is pumped out of Algeria, Angola, Egypt, Libya and Nigeria, with Equatorial Guinea and Sao Tome and Principe cited as emerging oil players.
But despite the supposed wealth coming from oil, many African countries continue to grapple with crippling poverty.
Angola has recently come under scrutiny from the International Monetary Fund, which found that $700 million a year had gone missing over several years.
Angola and Nigeria, which is trying to account for its oil earnings, rank in the bottom 20 on the UN human development index for 177 countries.
Nigerian petroleum and energy minister Edmund Doukoru said his country was committed to fighting corruption.
"By making more information available to the public, I hope civil society will be a better watchdog," Doukuru said.
"Corporate governance of the industry is of critical importance," said South African minerals and energy minister Lindiwe Hendricks.
-From AFP
STP - Tele Non - Civil society want to be more interventora in the oil-producing questions
The civil society are-tomense want to have a paper more active in the oil-producing questions. The representatives of the populations require, by that, that the decisores political publish and permit the access to all of the agreements that turn out to be signed.
In the Workshop, subordinate upon fearing, “the oil can be a benção- the positive experience of the Norway”, began by show the utilization that the managers of that nordic country has done of this important resort, in the improvement of the level of life of its population.
Now, Saint Tomé and Prince is to a pace of the exploitation of the “black gold”, and by that, the civil society do not want to be of outside of the turns of the complex one dossier. For it show that also is aware to what is passed to his return, requires now that the rulers become public and facilitate the access of the populations to all of the resultant documents of the oil-producing negotiations.
The charts formation aspect went another one of the recommendations of the workshop, by form to that the nation is intellectually ready for receive and do a good utilization of the financial resorts that should enter us chests of the state.
The seminary organized by the ONG English “International Alert” advised on the other hand the decisores political it will take advantage of the deep of the oil for will put in office in the recuperation of others sectors of the economy and in the construction and reconstruction of infrastructures.
any geologists here ?
http://www.pgs.com/business/products/datalibrary/wsafrica/saotomeprincipe/eez/
SURVEY NAME: Exclusive Economic Zone - São Tomé
SURVEY AREA: 4900km 2D
ACQUISITION PARAMETERS: Mode: Single source, single streamer
Energy Source
Shot Interval: 25m
Source Type: Sleeve and Bolt 1500 LL Guns
Air Pressure: 2000psi
Volume: 3090 cu in
Strings per Array: 3
String Separation: 12.5m
Source Depth: 6m
Streamer
Streamer Length: 6000m
Streamer Depth: 7m
In-line Offset: as short as practical (<100m)< /><100m)
No. of Groups: 480
Group Interval: 12.5m
Group Length: 12.5m
Data Recording
Record Length: 9000ms
Sampling Rate: 2.0ms
Low-cut Filter: 3Hz / 6dB per octave
Hi-cut Filter: 218Hz / 484dB per octave
Format: SEGD 8015, 3590 Cassette
PROCESSING FLOW: Reformat: SEGD to PGS Internal Format
Geometry: Apply 2D geometry
Edit: Selected bad shots and channels zeroed
Statics: System delay
Filter: Low cut and anti-alias filter
Spherical Divergence: 1/T**2
Trace Drop: Drop alternate traces
SRME: Surface related multiple elimination
Velocity Analyses: NMO velocities on a 2km grid
Radon Demultiple
MDA: Multiple diffraction attenuation
NMO: Picked NMO velocities on a 2km grid
Mute: Outer trace mute
Inner trace mute
2D DMO stack
Tvf: Pre-mig. Band pass filter (TVF)
Gain: Pre-mig gain
2D Migration: CFDMIG finite difference
3 cascade using picked NMO vels
Tvf: Band pass filter (TVF)
Gain: Residual gain or AGC
Gun + cable correction
AVAILABLE DATASETS: Raw Stack SEGY
Raw Migration SEGY
Final Migration
Report: Rigs take record hit from Rita
Damaged, lost rigs used for exploration may delay discovery of new global oil supplies, paper says.
September 28, 2005: 8:08 AM EDT
NEW YORK (CNN/Money) - Hurricane Rita caused record damage to offshore oil and natural gas rigs, according to a published report, and that could delay exploratory drilling planned to meet the world's growing appetite for oil.
The Financial Times cited market intelligence firm ODS-Petrodata as saying the storm that hit near the Texas-Louisiana border early Saturday will cause a shortage of rigs off the Gulf Coast this year. Rigs are movable and used for exploration and development, as opposed to platforms, which are fixed and used to extract oil from established offshore reserves.
The newspaper reports that the hit taken by rigs could delay exploration drilling as far away as the Middle East.
"Based on what we have right now, it appears that drilling contractors and rig owners took a big hit from Rita," ODS-Petrodata's Tom Marsh told the newspaper. He said that while Hurricane Katrina hit an area where there were mostly mature oil and gas platforms, "Rita came to the west where there is a lot of (exploratory) rig activity."
The newspaper reports that according to the Coast Guard, nine semi-submersible rigs have broken free from their moorings and were adrift. Numerous drillers, including Global Santa Fe (Research), Transocean (Research), Noble Corp. (Research), Diamond Offshore Drilling (Research) and Rowan Companies (Research), have reported missing or damaged rigs from Rita.
Rigs were in short supply even before the hurricanes, the newspaper reports. They cost $90 million to $550 million, and a rig ordered today to replace a damaged or destroyed rig won't be available before 2008, according to the report.
_________________
For more news on this year's oil crunch, click here.
hopefully the focus is on the indies not ERHC and our parters / operators
Africa to explore its own oil options
September 26, 2005
By Fienie Grobler
Johannesburg - Africa will consider the creation of its own oil exploration and production company at a global petroleum congress in Johannesburg this week.
"The African petroleum industry is the fastest growing in the world," Lindiwe Hendricks, the mineral and energy affairs minister, told reporters ahead of yesterday's opening of the 18th World Petroleum Congress.
She said the meeting of about 4 000 key players in the oil industry would look at "how to ensure that our [Africa's] resources are exploited to the benefit of our people.
"In the near future, Africa will come to play a pivotal role" in petroleum production, Hendricks said.
The five-day gathering is a triennial affair bringing together oil executives, governments and concerned groups to take stock of challenges facing the oil and gas industry.
Hendricks said African leaders at the meeting would "seriously discuss the possibility of a pan-African exploration and production company ... to see how we can have some control of the resources" to compete with major global oil firms.
"The proposal has been put on the agenda," she said, without giving further details.
African oil-producing countries provide 8 percent of all world oil output, with Nigeria leading the pack as the world's 12th-largest oil producer.
About 85 percent of African oil is pumped out of Algeria, Angola, Egypt, Libya and Nigeria, with Equatorial Guinea and Sao Tomé and Principe cited as emerging oil players.
But despite the supposed wealth coming from oil, many African countries continue to grapple with crippling poverty.
Angola and Nigeria, for instance, rank in the bottom 20 on the UN human development index for 177 countries in 2005.
Angola's oil minister, Desiderio Costa, told reporters that Angola considered a continental oil exploration company as a "good idea" but added: "For now it's just ideas. We support the idea but we need to deeply discuss what this company is going to be."
Angola recently came under scrutiny from the International Monetary Fund, which found that $700 million (R4.47 billion) a year had gone missing over several years. Meanwhile, Nigeria is trying to account for its oil earnings.
"The conference offers the continent a chance to seriously look at issues" including the "continuous poverty of oil-rich countries", said Ayanda Mjekula, the chairman of the SA National Committee.
He said Africa needed to discuss corporate governance, transparency and the impact of HIV/Aids as the continent tried to break into the world market.
"For the continent, it [the congress] is a renewed recognition of the leading role that Africa can play in the production of energy resources," a congress statement said.
The statement said delegates would debate oil prices, global warming and climate change, solutions for affordable energy and sustainable alternative fuels.
- AFP
STP Tele Non news of the investigation
http://www.cstome.net/diario/index.htm
Office of the attorney general detects serious declared insolvent in dossier oil the General Office of the attorney general of the Republic affirmed this week to have detected serious imperfections in 2nd auction of petroliferous blocks in the zone of joint exploration Nigerian is -tomense.
The constatação comes in the sequência of the initiated inquiries has months, after the denunciations of alleged conflicts, games of interest and little transparency in that international competition. Only 5 days had been necessary so that the North American investigators of the University of Tulsa, detected, still that preliminarily, serious imperfections in the second patrol of licitation of petroliferous blocks in the zone of joint exploration between the Nigéria and Are Tomé and Príncipe.
"We conclude during the inquiries that had existed would be declared insolvent in the second patrol of licitation of blocks, we believe that in some in case that it lacked transparency while noutros lacked adequacy of du-diligence to evaluate the financial capacity and the viability of the companies who had participated in the auction." Dobie consulting Langenkamp for the Office of the attorney general of the Republica said.
The connoisseurs who are to acessorar the General Office of the attorney general of the Republic, PGR, in this process, do not have doubts that it is necessary to continue the inquiries to select responsibilities. As much is thus that, after interviewing about 26 involved individualities in oil dossier and reviewing numerous documents and reports, the PGR that to go the Abuja, Nigéria now, to all examine the process of selecção of the companies the one who had been evicted blocks of the black gold.
"Contacts are to be made in the direction of us continue the inquiries in Nigéria because necessarily we will have that to make the same that we are to make here, and in the Nigéria as form of terms the complete inquiry" Said Adelino Pear tree Attorney general of the Republic.
The process now in justice, retraces the last April when the meeting of the joint ministerial advice, approved relative decisions to 2º auction of 5 petroliferous blocks and adjudicou the participation of exploration. In the height some voices politics had denounced the results of the meeting for considering that companies without the qualification required technique had been favored in detriment of company with better references and greaters offers of bónus of signature.
Because now the Public prosecution service only brings the case the public square, it has who affirms that the inquiries do not go to give in nothing. However the North American specialists guarantee that still she is possible to make justice.
"We are certain that these inquiries go to still take sufficiently time because you vary company explore block the same. They exist company with financial difficulties that surely go to make it difficult the signature of the agreement for the allotment of production "Concluded Dobie consulting Langenkamp for the Office of the attorney general of the Republica.
If everything to run as foreseen, inside of six weeks, will have to be known the results of the inquiries that in the history of the oil in Are Tomé and Príncipe for the first time, will open to justice the meandros of the celebrity to dossier.
IDCC can you breakdown how 500 MM Bbls PROVEN is only worth $3.67 / pps
seems a bit low on estimate of pps and proven
Homeport these seem like old trump'd up charges as the JDA expressed in their refutal statement to the Washington Post story see...http://www.nigeriasaotomejda.com/ under "Press"
is there new info here? or are these simply SMEAR/STALL tactics
Homeport, I wouldn;t expect them to say too much if anything, BTW the PR firm is closed due to RITA and I doubt the majors will say boo prior to PSC,
BB - yeah 2,3 look good PXD is playing ball
4,5,6 are still questions but we should be good to go for at least a couple in Nov
anyone read about the Rebels in Nigeria taking a Chevron plant, Oil prices should go Wild now coupled with the storm
23.09.2005-J.Vitrina-(S. Tomé)
Concluded with success negotiations about oil
THE cycle of negotiations for the licenciamento of the blocks 2, 3, 4, 5 and 6 that elapses there are two weeks in S. Tomé finished this fifth fair. The president of the joint commission between the two countries, Carlos Gomes said that the interests of the two countries were very well defended. “We did significant progresses, especially about the blocks 2 and 3 whose negotiations are practically concluded, lacking barely small you adjust in that that ourselves call of “drafte”, Carlos Gomes said.
It advanced, in the however, that relativamente to the block 4 exist still some divergences for will be outdated. The president of the joint commission said to that purpose that “there are some conditions of base that we require for that we be able to continue and sign the agreements”. It underlines, by that, that is necessary that “the group of the companies compromise harmonized as much as his positions, therefore we negotiate with an only user in name of the assembly”. Carlos Gomes did to know that the negotiations go continue and that “case they come it conclude with success” and proceed the signature of the contratos, the country is going to receive more bónus of signature and the companies go put at disposal, all of the years, “a determined total” for pay scholarships, go pay an income of the available surface, go perform projects in the social domains and infrastructure in the countries S. Tomé and Prince) and “naturally everybody the others benefits that advêm of their intervention in an oil-producing operation. M.clays
true BB but just another dark cloud hovering all over us as if we needed more problems, folks questioning and pointing fingers our way may give some an uneasy feeling
more trouble in paradise - more delay perhaps?
Spec, any update on ER from your higher ups? We've been pegged here at these levels for 3 months
any chance they do a $.40 financing ? Hope not
your thoughts
ERHC Mentioned on Upstream - Sept. 16, 2005
by Barry Morgan
Nigeria looks to secure its future as major supplier to US
THE US may plan to take more than 25% of its hydrocarbon needs from western and central Africa by 2015, practically doubling present imports from the region, but Washington will not be alone in seeking to unlock the area's untapped riches. Players from the east are already competing for proven assets and prospective acreage.
Nigeria too is playing its own game. Strict local content rules applied to the latest licensing round coupled with preferential treatment for companies willing to invest downstream in return for prized deep-water plots left the majors deeply miffed and they stayed away in droves.
Korean National Oil Company and Taiwan's Chinese Petroleum Corporation swept into prime position, roundly outbidding medium-sized US rivals such as Devon Energy. India's ONGC-Videsh won junior equity but Beijing's three oil giants did not even get a look-in.
Clearly there will be considerable pressure brought to bear on Abuja to relax its regime ahead of the next round, planned before 2007. There are also technical questions to answer recent probes in the western Niger Delta deep disappointed the pundits, prompting established players to show caution in committing dollars to unproven plays.
Nonetheless, old Africa hands along with relative newcomers to the Gulf of Guinea such as Noble Energy and Pioneer Natural Resources will be jockeying for position in the Joint Development Zone, reputed to contain upwards of 10 billion barrels, managed by Nigeria and Sao Tome under a bilateral protocol.
Both entered the fray in partnership with ERHC Energy, the US minnow with strong links to Abuja's power-brokers.
Success with Chevron's upcoming wildcat in the JDZ Block-1 will boost confidence in the zone and focus Washington's hawks on how to shore up its interests in the area.
The US is already backing construction of a deep-water port at Neves on Sao Tome and negotiating a military support facility on the archipelago.
With substantial upstream investment onshore Nigeria by Chevron, ExxonMobil and Shell, Abuja aims to raise oil output from 2.5 million barrels per day to 4 million bpd by 2010, with liquefied natural gas exports earning more than crude by 2012.
Nigeria is already the fifth biggest crude supplier to the US, yet offers poor security.
An upsurge in piracy in south-eastern Nigeria coupled with mounting ethnic unrest has led one US Nato general to warn the federation may fall apart under the strain.
Incensed by Abuja's refusal to allocate lucrative oil licences to southern indigenes, ethnic Ijaw leaders this month promised to sabotage exploration and production efforts by the Koreans and Taiwanese, especially plans to lay gas pipelines to the northern states.
There are fears the country could implode, bringing down the entire sub-region.“It's a 3000-mile (4800-kilometre)coastline with no security,”agrees Lieutenant Commander Daniel Trott of US Naval Forces Europe.
More to the point, Osama bin Laden has officially marked the country down for“liberation”effectively declaring the African interior a war zone.
Already, US forces are stretched throughout the Sahel from Nouakchott to Ndjamena, mopping up terror cells and training partner-states to do the same. Fed by Algerian intelligence, US policymakers fear Mauritania's Salafist-style terror cells may spread to the oil patch.
Nigerian President Olusegun Obasanjo this month approved an anti-terror Bill covering everything from kidnapping to the destruction of infrastructure, even specifying fixed platforms on the continental shelf.
At the same time, Defence Chief of Staff General Alex Ogomudia announced a combined police-military operation to step up protection of oil installations in the delta.
In a parallel pitch, Nigerian oil moguls will this month hear overtures from New York-based Infinity World Telecom to support a $500 million scheme to link all offshore fields to the global telecom system.
Direct links to onshore facilities are also mooted, bypassing reliance on the national utility and underscoring Abuja's concern to keep oil flowing at all costs.
It is a preventive strategy to keep terror off the seas by developing partnerships and capacities, says Trott. To this end, the US is convening a second gathering of regional naval chiefs in Ghana this December.
While making headway in Sao Tome through US corporate ambition in the JDZ, US military and officials have encountered resistance in Equatorial Guinea, where Beijing's influence is rising.
Both states are coup-prone with Malabo unable to provide effective security for offshore installations, leaving companies to deploy private guards.
US company Military Professional Resources has been contracted to train local forces to plug the gap, but ostensibly without any quid pro quo on Malabo's deteriorating human rights front.
Of all the potential hotspots, post-war Angola has pleasantly surprised pessimists. Yet issues of financial probity persist, both in Luanda where output growth has been slower, and also in Malabo where oil revenue boosted Equatoral Guinea's GDP by 60% in the past two years.
The US Securities&Exchange Commission has dragged ExxonMobil, Marathon, Amerada Hess and Devon Energy into protracted enquiries to determine a breach of the Foreign Corrupt Practices Act.
Only Nigeria looks set to implement the UK-inspired Extractive Industries Transparency Initiative, but progress is slow and the region will likely continue to be source of embarrassment for western E&P operators.
Recoverable offshore reserves across the West African arc from Ivory Coast to southern Africa are estimated to be in the region of 30 billion barrels and the influential Washington and Jerusalem-based Institute for Advanced Strategic and Political Studies believes this prospectivity must drive US foreign policy.
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15 September 2005 23:02 GMT | last updated: 15 September 2005 23:02 GMT
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Language talks for Sao Tome by Barry Morgan
THE archepelago of Sao Tome&Principe is in favour of establishing an upstream consortium comprising state oil companies in Brazil, Portugal and Angola before the end of the year, writes Barry Morgan.
Petrobras, Galpenergia and Sonangol respectively have indicated interest in the project, for which studies have started, according to Sao Tome's Natural Resources Minister Deolinda da Costa.
The all-lusophone venture is expected to target offerings in Sao Tome's 2007 round to license its Exclusive Economic Zone and position itself for additional opportunities in the Joint Development Zone between Sao Tome and Nigeria.
StockGuard, any new insights .. we still on track?