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That is correct. Sinoangol was kicked out in 2016 for breaching their PSC. While they owned the block, they did have Sonangol farm in for 30% which it appears STP is letting them hang on to, possibly as part of a cooperation agreement between STP and Angola. Since Total is partners with Sonangol on Block 1, it seems like it would make sense to partner up on Block 2, as well.
As far as I am aware, Block 8 has never been awarded to anyone so Total should be able to easily pick that block up from STP if they want it.
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There is no evidence that any Chinese companies are currently in the EEZ.
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Thanks, but those posts were about proposed PSC's not final, signed PSC's.
And that discussion was from late 2022. I don't believe the idea of a "stealth" PSC was floated until some months later.
I don't blame STP for not awarding the block to someone they feel is not financially capable. Looks like they do not want another ERHC situation on their hands.
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I believe I have only expressed doubt about the existence of a stealth PSC and do not recall making any posts connecting the 400-page document to the theory of a stealth PSC. If you can improve my recall by finding such a post, please do so.
To my thinking, if a PSC (stealth or otherwise) existed then STP would not have attempted to strip Total/ERHC of their rights and the bidding process would never have taken place. They would have been happy to have received a signature bonus and other payments (training, etc.) that PSC’s bring and, more importantly, they would have been pleased that progress was being made toward finding commercial oil (possibly), which is what they want more than anything.
Thank you for the update on the bidding process. Did your STP contact specifically say that Bidder 1 pulled out because of the CE?
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But, was that "done" deal ever completed. Lack of a PSC, one of the conditions for completion, points to no.
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Yes, the lack of news on any Block 4 bidding could be a good indicator that the caveat emptor had its intended effect.
Time, as always, will tell.
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A recently published write up on Jaca-1 results (see page 40/41).
If I'm reading it correctly, it is saying that the oil is being generated closer to Block 4 and moving toward Block 6. Hopefully some is staying in Block 4.
Any oil techies out there who can provide an interpretation for the laymen?
https://geoexpro.com/wp-content/uploads/2024/03/Geo_Expro_v21i01_web.pdf
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Like you, I can only speculate on the happenings with Block 4, but here’s a guess.
Perhaps Sao Tome believed they were covered, legally, by the 2018 tax collection process that was served on ERHC. Perhaps in that process STP told ERHC that they would give them five years to pay the taxes due on Block 11 or they would lose Block 4. When ERHC had not paid the tax by 2023, STP proceeded with their attempt to take back Block 4 but ERHC said, “not so fast”, and issued the caveat emptor.
And, yes, Oranto does have a PSC for Block 3.
https://www.resourcecontracts.org/contract/ocds-591adf-2060430881/view#/pdf
It is highly doubtful that there is a stealth PSC. If there was then that would mean that ERHC and Total completed their deal which would have brought some funding to ERHC, some of which they could have used to pay the Block 11 tax which would have kept STP from trying to pull the block.
Agreed. Please get us to a PSC on Block 4 before the end of September.
And sorry for the delay in responding. It’s been a busy week.
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Yep, as far as we know. Just a little public service I’m providing at no extra charge.
Seven…
I see there was another trademark filing. Hardly worth discussing if history is our guide.
But maybe you’ve found something more intriguing?
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Annual update. In the last year Kosmos removed 10 subsidiaries from their list while adding none. One subsidiary they did not remove, once again, is "Kosmos Energy Sao Tome and Principe Block 4". Why? Why? Why?
https://www.sec.gov/Archives/edgar/data/1509991/000150999124000029/exh211-12312023listofsubsi.htm
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US 5G dongle competition incoming...
Now that it’s finally here, I only have to wait until around the fourth quarter of the year for it to launch in Europe. The US will get it in Q3, and here comes the best part. TCL told me it’ll be available for under $100. It’ll be up to carriers to commercialize it, but the Chinese vendor is already working with a major, albeit unnamed, US mobile operator.
https://bgr.com/tech/tcl-just-launched-a-5g-dongle-at-mwc-and-ill-buy-one-immediately/
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Wen-Shone Shiau has a no longer listed as a director of Tri Cascade.
https://bizfileonline.sos.ca.gov/api/report/GetImageByNum/241017252231022213238113098225198015232200095138
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They are partners with TotalEnergies in JDZ Blocks 7, 8 and 11.
And, yet, XOM is back in the JDZ. For now.
Nigerian President’s Special Adviser on Media and Publicity should be removed immediately. How could he make such an egregious mistake?
Tinubu celebrates Emeka Offor at 65
President Bola Tinubu has congratulated businessman and philanthropist, Emeka Offor, as he marks his 65th birthday anniversary.
In a statement issued by his Special Adviser on Media and Publicity, Ajuri Ngelale, President Tinubu lauded the business mogul for his humanitarian causes, especially across Nigeria.
It reads: “President Bola Tinubu congratulates Sir Emeka Offor, renowned entrepreneur and philanthropist, on his 65th birthday.
“Sir Offor is the former chairman of Erhc Energy Inc., the Chief Executive of Chrome Group, one of the leading West African oil and gas conglomerates, and the founder of the Sir Emeka Offor Foundation.
“President Tinubu commends the business leader for his humanitarian interventions and pursuit of important causes, particularly his efforts to eradicate polio in Nigeria through his foundation.
“The president wishes Sir Offor many happy returns.”
https://thenationonlineng.net/tinubu-celebrates-emeka-offor-at-65/amp/
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Petrobras enters the exploration of three oil blocks in São Tomé and Príncipe
The Brazilian oil company Petrobras today formalized the consortium with Shell for the exploration of oil in three blocks of São Tomé and Príncipe, a partnership that the São Toméan Government considers as a "right and firm step" for the discovery of tradeable oil.
Petrobras acquired a 45% stake in blocks 10 and 13 and 25% in block 11 of the Exclusive Economic Zone of São Tomé and Príncipe (EEZ).
Blocks 10 and 13 also have the participation of Shell, with 40% and the National Petroleum Agency of São Tomé and Príncipe (ANP-STP), which represents the São Tomé State, which maintains the 15% in the two blocks.
The participation rights in block 11 are divided into 40% of Shell, 20% of Galp, 25% of Petrobras and 15% of ANP-STP.
"The Petrobras company that has just joined the consortium of blocks 10, 11, and 13, has extensive experience in oil exploration in deep and ultra-deep waters and we are quite convinced that it will bring this wealth of experience and know-how to join that of the companies that are already in these blocks and thus continue our titanic undertaking, but on the right path towards the discovery of oil with a commercial character," said the executive director of ANP -- STP, Álvaro Silva.
The head of the ANP-STP that the country will continue to implement "policies and reforms necessary to attract companies of renowned credibility to oil operations" in STP.
"We are aware that we are still in the middle of this marathon, which will require from the State the flexibility and modernization of some legislations that constitute the guiding vector, whether directly or indirectly to our oil activity, thus making our area an increasingly attractive and competitive 'frontier area'," said the executive director of ANP-STP.
Álvaro Silva promised to continue working with international companies in the oil and gas sector, "with a feeling of partner", with the humility of those who recognize that they still need a lot of knowledge and technology, but also with the unwavering determination of an institution and a State that knows where it intends to go, the trajectory it intends to make and the objectives it wants to achieve".
The signing of the contracts for the sharing of participatory interests between Shell and Petrobras took place in the São-tomense capital between the representatives of these companies and the ANP-STP, witnessed by the Minister of Infrastructure and Natural Resources, José Rio, staff of the institutions involved.
In October 2022, the Galp and Shell consortium confirmed "the existence of an active oil system" in the well called "Jaca" in block six of the Exclusive Economic Zone (EEZ) of São Tomé and Príncipe, but without evidence that "it has a recoverable potential large enough to be commercial", promising to continue to evaluate the results.
https://www.jornaldenegocios.pt/mercados/materias-primas/petroleo/amp/petrobras-entra-na-exploracao-de-tres-blocos-de-petroleo-em-sao-tome-e-principe
Possible. But Francois Gagnon seems a fairly popular name in Canada so we would need more information to figure out exactly who he is.
New 5% holder from Canada...
https://www.sec.gov/Archives/edgar/data/799235/000201045024000001/form13gfiling.txt
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Eight...
I did not realize that SO's Canadian company was still a thing. Although, it sounds like it's barely at thing.
https://finance.yahoo.com/news/global-acreage-resources-ltd-announces-181400533.html
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Thanks for the transparency. Wish I was similarly confident about current events.
But it ain’t over ‘til it’s over.
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Looks like Galp’s Namibian “diamond” won’t be needing months of analysis to confirm it is the real deal. Sigh.
https://www.offshore-technology.com/news/galp-namibia-oil-discovery/?cf-view
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STPs requirement was that they needed a minimum of 3 companies to express interest in the block or they would not go to the tech/financial proposal submission phase. There is no requirement for 3 companies to be included in any single proposal for the block.
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Yes, STP has extended a number of time frames of various PSCs so I’m sure that is the hope: that if they can bring in a qualified partner STP will extend the agreement to give them an opportunity to find hydrocarbons.
And, if I’m not mistaken, the latest Kosmos extension on Block 5 expires this month so I would expect to hear of another extension there soon.
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The most current information, as far as I am aware, is that ERHC's rights in their blocks (both EEZ and JDZ) will expire on September 30, 2024 if they are not in production at that time.
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ND9, thank you for posting this information. Below is a translation of the ANP announcement.
What it says is that, previously, there was an invitation for parties to express interest in taking 85% of Block 4 and, now, because at least three companies did express interest, the ANP is moving to the next step of the process and is now asking those companies to submit their technical/financial proposals.
What it means is that STP is trying to take ERHC’s rights in the block and give it to someone else, thus the caveat emptor 8K. If there is news around January 20 it could be that ERHC is taking someone to court.
The National Petroleum Agency of São Tomé and Príncipe (ANP-STP), through ANNOUNCEMENT ANP-N°.1/2023, invited interested oil companies, holding technical and financial capabilities, to express interest in acquiring eighty-five percent ( 85%) of Participating Interests in Block 4 of the Exclusive Economic Zone (ZEE) of São Tome and Principe.
One of the considerations regarding the continuation of this call was that there should be a minimum of three (3) companies that expressed interest.
Considering that this minimum number of protesters was observed, ANP-STP invites
companies that expressed interest, to present their technical and financial proposals, for final evaluation. Proposals must be submitted via email (stp.bloco4@anp-stp.gov.st), by January 20, 2024.
OK, how about this? Please provide a link to Offor or Chrome filing with the SEC after the reverse split because I cannot find any such filing.
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Yes, Ntephe’s and Odobulu’s shares do reflect a split adjustment but Offor’s do not. Unless you’re saying they Offor once owned 31.7 billion shares?
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Check the dates of the filings referenced. Those are pre-RS numbers.
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STP is not looking for a "retroactive tax signature bonus". They are merely trying to collect on the taxes that ERHC owes under the PSC they signed for Block 11 in 2014, which contains the following language...
"Tax" means the tax payable pursuant to the Petroleum Taxation Law;
and,
"Petroleum Taxation Law" means the Petroleum Taxation Law, Law n° 15/2009, as amended, supplemented or replaced from time to time;
ERHC mentioned as much in a recent 8K.
ERHC continues to work on the issues and fallouts of dispute resolution, including multi-jurisdictional litigation and arbitration on EEZ Block 4 as well as legacy tax claims on EEZ Block 11.
https://www.sec.gov/Archives/edgar/data/1509991/000155837016005628/kos-20160331ex100988876.htm
https://www.anp-stp.gov.st/phocadownloadpap/Restrict_Bidd/Petroleum%20Taxation%20Law.pdf
https://www.sec.gov/ix?doc=/Archives/edgar/data/0000799235/000137647423000103/erhc-20230207.htm
But again, as I mentioned to LMLT, can STP take away rights to Block 4 based on non-payment of taxes from Block11? I believe that is the legal fight that ERHC may be willing to take on based on their "caveat emptor" 8K.
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I don’t believe that. I think the enforcement procedure was delivered to ERHC upon its issue in 2018 but ERHC has been given until now to pay the taxes. They apparently have not and now face the consequences.
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I doubt STP is after anything more than the taxes it is owed by ERHC under the Block 11 PSC. It seems the legal question will be (should it go that far), can STP take away ERHC’s rights in Block 4 over its failure to pay the Block 11 taxes, as I believe that is what the tax enforcement procedure is attempting to accomplish.
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Good point. I had not considered that Total paying ERHC’s taxes could have the appearance of a bribe if it allowed Total to complete a deal for Block 4. However, if Total hasn’t found a legal way around this issue in five years then either one does not exist or Total needs to hire better lawyers.
Or, how about ERHC just pay its own taxes out of the millions in revenues they are allegedly receiving per PPP documentation?
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I must have been busy when this was first posted so a couple of late questions, if you don’t mind, Krom?
1. If Total is willing to pay upwards of $3 billion for Block 4, why wouldn’t they just go ahead and pay whatever taxes ERHC owes, which are likely a pittance in comparison, in order to avoid the tax issue with STP?
2. The document you asked me to find is a “tax enforcement procedure”. Wouldn’t that be some sort of attempt to collect a tax based on an existing regulation rather than a new tax law?
3. Why would STP have an issue with Total coming into Block 4? Based on previous reports, STP just wants ERHC to get on with exploration of Block 4 and bringing in Total would allow that to happen.
Thanks.
RKT, the “anonymous” contractor for the DS-7 drillship is Azule Energy in Angola. I posted on this a while back but, unfortunately, I’m on my phone right now so can’t pull that post easily.
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This is good news for the EEZ. Not only does She’ll still like it but they like it enough to bring in a “friend”. Hopefully, something will rub off on ERHC.
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