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FG to Shut Oil Fields Flaring Gas By 2008
By Chika Amanze-Nwachuku and Fidelia Okwuonu, 07.05.2007
The Federal government may have concluded plans to close down oil fields flaring associated natural gas at the expiration of the 2008 deadline for gas flaring in the country.
THISDAY reliably learnt that government’s decision to shut the affected oil fields and impose stiffer penalties on erring oil firms after the expiration of the 2008 deadline followed the rising cases of insecurity in the Niger Delta region where the communities often protested environmental degradation.
Operating firms, it was learnt, were said to have been interested in only gathering gas for export from offshore facilities and have abandoned investments in gas gathering projects needed to boost power generation and domestic utilisation on the excuse of unrests.
Multinational oil companies operating in Nigeria, led by Shell Petroleum Development Company (SPDC), had called on the federal government to extend the flaring deadline to 2010 due to the inability of the Nigerian National Petroleum Corporation (NNPC) to fund its equity in the Joint Venture (JV) operations which contributes about 95 per cent of the nation’s daily crude oil production capacity of 2.6 million barrels per day (mbpd).
But reacting to the said moves, Mr. Abiodun Ibikunle, deputy director, Department of Petroleum Resources (DPR) explained that the closure of oil fields flaring associated gas by 2008 would not affect federal government’s revenue generation from crude oil sales.
Ibikunle, who spoke at yesterday’s monthly technical meeting of the Nigerian Asso-ciation of Petroleum Explo-rationists (NAPE), argued that the negative effect of the federal government’s stiffer penalty on erring firms would not be as much as the amount of revenue loss as a result of the shut-in of 700,000 barrels per day (bpd) of crude oil production due to unrests in the Niger Delta.
According to him, “even though they have genuine challenges for negotiating postponement in the outage date for gas flaring, the federal government can go a step further to impose stiffer penalty if we can absorb the shock of 700,000bpd loss”.
On his part, Mr. Steven King, Exploration Manager, BG Exploration and Production Nigeria Limited noted that gas flaring could be stopped next year as planned, if the government was committed to promptly implement the policy.
In his words ìin the 50s and 60s oil firms operating in the† United States had preferred flaring of natural gas and makes gas have less value until the government takes a strong position to increase utilization for industrial, commercial and power generation. Now, natural gas has the same value with oil in the US as the preferred choice of fuel.
“BG sees a great future for gas in Nigeria, which can benefit from the technological advances made elsewhere in the world. All the parts of the supply chain need to be in place to get the gas from the well head to the consumer.
This is precisely where BG has placed itself in the market. Nigeria will hopefully form an integral part of our Atlantic Basin strategy”, he said, adding that Nigeria desires to generate as much revenue from gas as oil can be achieved and BG intends to be part of this "dash for gas".
Some Feel SEO Doesn't Care Enough About Our Share Price. Well why should he? IMHO SEO knows this is a $5. to $20. stock. What does he care if we NOW sit @ $.30 or $.60 or even $1.00? In the great scheme of things it makes no difference.
But could he be purposely keeping the share price down? Maybe. When the time is right & our stock is primed and ready for take off, SEO's family/friends/political bedfellows will all want to get in on our good thing. And they will be able to get more shares for themselves @ $.30 than @ $1.00 Our price may be kept low as future political favors to his circle of friends.
(Happy 4th To All)
Sao Tome’s oil agency says islands have onshore, offshore reserves [ 2007-07-02 ]
Sao Tome, Sao Tome and Principe, 2 July – Sao Tome’s petroleum authorities have identified 18 offshore areas in the country’s waters as having possible hydrocarbons deposits and say there could also be onshore oil reserves in the archipelago.
The news was announced Friday during an energy seminar organized by the National Petroleum Agency (ANP) on the results of seismic studies carried out in the islands’ exclusive economic zone.
International consultant John Symons, using seismic data findings from Sao Tome’s territorial waters, said there were 18 zones that could contain hydrocarbons in a study that advanced an 8.36 percent probability of finding commercially viable oil deposits.
“There is no certainty, but the probability of finding oil is 8.36 percent in the 18 areas identified,” said Symons, adding that test drilling had reached between 2,400 and 3,000 meters.
The oil experts were unanimous at the seminar over the existence of petroleum in Sao Tome’s waters due to the close proximity of the joint exploration zone with Nigeria, but didn’t rule out failure to develop these resources due to technical questions.
ChevronTexaco said in January it had struck oil in the joint development zone with Nigeria, but not yet in commercially viable amounts.
The ANP’s technical director, Osvaldo Abreu, told the oil seminar that “it is as possible there is oil as there is not, so we need to wait for test drilling to confirm it.”
Sao Tome’s oil authorities plan to launch a licensing round in the islands’ territorial waters in 2008 with assistance from the World Bank, which has offered help in the form of studies carried out by Petroleum Geo Service of Norway and the British Geological Survey (BGS).
Osvaldo Abeu said a “field study” undertaken by BGS last week had indicated there could be onshore oil resources in Sao Tome at a depth of just over 3000,000 meters.
But he added that it would be necessary to make a seismic survey below Sao Tome’s volcanic mantle to confirm whether there are possibilities of discovering onshore hydrocarbons reserves. (macauhub)
95 Page Indictment Of William Jefferson. Seem to really have the goods on W.J. No mention of ERHE.
http://www.thisdayonline.com/US%20Grand%20Jury%20Report.pdf
From Rambus's Link It Says Drilling DOES Take 2 months.
He also said that each well would take
around two months, with a couple of
weeks to examine the results afterwards.
“The results should be available by year
end,” Kont stated.
Lobbyist: Company involved in Jefferson scandal was ‘hogwash’
By Kevin Bogardus
June 15, 2007
A company that cosponsored a trip to Africa noted in Rep. William Jefferson’s (D-La.) indictment showed signs of trouble before it established itself in the Bahamas and filed for bankruptcy in Louisiana.
In his first interview since the Jefferson scandal broke, one of the company’s former lobbyists, Dick Egle, said his contract with what seemed like a promising energy company did not turn out as planned.
“I was pretty excited about it when I first heard about it,” Egle told The Hill. But later, he added, “It was like trying to herd cats.”
Egle, whose firm Egle Associates is based in Vienna, Va., lobbied for Global Environmental Energy Corp (GEEC) throughout 2004. The company since has been caught up in the federal government’s investigation of Jefferson.
“I did not want to be any part of it. They just gave me one story after another,” Egle said, describing such tales as “all hogwash.” The contract was not renewed.
The company’s president, Noreen Wilson, testified before the grand jury that charged Jefferson, according to billing documents filed by GEEC’s attorney Joseph Artabane this spring in the company’s New Orleans bankruptcy case. GEEC, under its prior name, Life Energy & Technology Holdings, also known as LETH Energy, cosponsored a February 2004 trip Jefferson took to West Africa, cited in the congressman’s indictment as part of one of his many alleged bribery schemes.
“The company cooperated fully with the investigation and is not a target or subject of the investigation,” Artabane said. The company’s counsel chose not to respond to Egle’s complaints.
The Justice Department declined to comment for this story.
According to the billing documents, Wilson signed a cooperation agreement with the government in order to testify before the grand jury and provided requested documents and cooperated with interviews by federal prosecutors over the past year.
Messages left for Wilson were not returned by press time. In an August 2005 interview with the New Orleans Times-Picayune, Wilson said Jefferson “always helped” American firms interested in Africa but “never asked for anything in return.”
Egle has not been contacted by federal investigators. He never lobbied Jefferson for GEEC and did not help to arrange the lawmaker’s trip to West Africa. Nor he is “Lobbyist A,” as termed in Jefferson’s indictment, who allegedly arranged bribes between the congressman and various companies.
Jefferson has pleaded not guilty to the Justice Department’s charges and will fight them at his trial, set for January 2008.
With a goal of becoming an integrated energy company, GEEC has been marketing a process to turn municipal solid waste into electricity as well as dabbling in the oil and gas market. Nonetheless, Egle described his experiences of lobbying for the company as being without direction from his client.
“They would have a meeting. Then they would put out a press release. Then nothing happened,” Egle said.
Egle was frustrated by the company’s lack of progress in Louisiana. A Securities and Exchange Commission (SEC) filing stated delivery of its waste-energy units in America had been delayed by the company’s U.S. bankruptcy as well as its clients’ failure to meet its terms.
The energy business has been tough for GEEC. Though several units are under construction for use in China and the company has signed past power deals as well, GEEC expected its losses to continue, saying it needs to raise “additional funds” or shareholders “may lose some or all of their investment,” according to the SEC filing.
The company changed its name and its location during Egle’s contract. In August 2004, then Life Energy & Technology Holdings Inc. became GEEC and established itself in the Bahamas. Its main place of business remained in New Orleans, however.
Approached by an associate, the lobbyist was hired by Wilson for his contacts in Louisiana. A former Lafourche Parish president and Chamber of Commerce leader during the 1980s, Egle also owned two local radio stations in his home state.
“I was elected a Republican when there were only three percent registered Republicans in Lafourche,” Egle said.
Throughout his 14 years as a lobbyist, Egle has been familiar with Louisiana’s congressional delegation and touched base with them on the company’s plans. Egle pitched that GEEC’s technology would be good for the state “and we will let know as we get further along, but nothing ever happened.”
In addition, the lobbyist said he tracked waste-energy provisions in what became the Energy Policy Act of 2005, which was then moving through Congress, but little came of that as well.
“In this business, time is money and you can only do so much. It has to be them giving me instructions on what I can do for them, not me asking what I can do for them,” Egle said.
Egle earned $120,000 for his year’s worth of lobbying, according to Senate records. But the Louisianan said the records are mistaken — claiming instead that he earned $60,000 — and that he plans to amend the forms. In addition, he said he lost money on the contract since planned stock earnings from the company went down in value.
GEEC is moving through its bankruptcy case in New Orleans. The company recently had its case status changed to Chapter 7 from 11 and its creditors are holding meetings, according to court records.
In turn, Egle has officially ended his relationship with GEEC. The lobbyist said he filed a termination agreement last week.
Dokubo: I’ll End Hostage Taking in Niger Delta
From Ahamefula Ogbu in Port Harcourt, 06.17.2007
Recently released leader of the Niger Delta Peoples Volunteer Force (NPVF), Alhaji Mujahid Asari Dokubo yesterday arrived Air Force Base, Port Harcourt with a promise to do everything in his powers to end kidnapping and hostage taking in the region.
Also yesterday, seven Indian expartriate workers of an oil service company, Indorama who were seized by militants on June 1 were released.
He said kidnapping was not part of the struggle for the development of the oil producing areas but mere criminal act.
On the issue of hostage taking in the Niger Delta, he said: "We will try and work to stop this act of criminality and banditry. We are not going to be something that we are not; we are fighting injustice, we should not do injustice to other people. We are fighting for justice so we can't be seen to be doing injustice to other people."
Asari-Dokubo said a genuine solution to the Niger Delta crisis can only be achieved through the convocation of a Sovereign National Conference where the modalities for the co-existence of the component parts of the country would be decided. When reminded that the conditions attached to his bail did not allow him to address gatherings especially on political and other sensitive issues, he said: “I do not know of any such conditions to my freedom.”
Dokubo who arrived the airport at about 11.12 pm aboard a chartered flight was accompanied by the Action Congress Gubernatorial candidate in the State, Prince Tonye Princewill. He waved enthusiastically to thousands of his supporters who chanted his praises in Ijaw language and waved white flags to welcome him.
“I'm so elated and humbled by the people I'm seeing here. And I thank the people of the Niger Delta and all the oppressed masses who have suffered for a very long time, who have taken their time to be here to welcome me. I am so humbled and elated by this singular act of support. Though they said a prophet is not recognized in his home, but I am elated by the support from my people", he said.
He later moved to the house of Alabo Tonye Graham-Douglas from where he moved to his Buguma home for another reception party. He was accompanied from the airport to almost everywhere he went by a long convoy of commercial motorcy riders thereby causing a big traffic jam in the city.
The arrival of Dokubo coincided with the release of the seven Indians working for Indorama who were taken away by militants from the Indian quarters in Eleme on June 1.
Receiving the freed Indians at the Government House, Governor of Rivers State, Sir Celestine Omehia appealed to the petrochemical company to reopen the plant since all its seized members of staff have been released.
Those freed are the Managing Director of the company, Mr. Arun Heuctane, Anil Fortedar, Vijay Kumar, Richard Patal, Changrasekar Shama, A.K. Sawant, Mrs. D. Bang, Mrs. Swetharharan, Shamdazi and Samyak.
Heuctane who narrated the experiences of the released hostages said they were kept in a room with two matteresses.
Also From Oily:
3/8/2007
XOM + Aban = CVX
CVX sees all
major JDZ acquisition chatter
37% of ERHC that's the talk
Dolphin is still coming to JDZ
Hey Oily! On 5/10/2007 You Posted "CVX gets % of Block 2". And today "forewarned 1/10 rs". Are these two connected?
nuts 4 golf. If You Want A Cut Of American Oil All You Have To Do Is Move To Alaska And Stay There A Few Years. Don't have the exact figures, but I believe the State will pay you a few thousand a year.
I Hope To Buy A Few Million More Shares Of ERHE,
As Soon AS I Get This Money From Kenneth Lay...
My Dear partner,
My name is Mr. William Palmers I am the UK accountant (a close friend) of the Late Mr.
Kenneth Lay the founder and Ex CEO of Enron Corp the former energy-trading giant firm in
the United States that filed for bankruptcy in August 2001 due to fraud by the chief
financial officer Andrew Fastow with his associates Michael Kopper and including ex UK
bankers at Natwest.
There is an account opened in this bank in 1995 by Mr. Kenneth Lay (then CEO of Enron
Corp)and since his death in July 5, 2006 of a Heart attack nobody has operated on this
account. The purpose of making this account confidential and granting only I access I do
not know. For this reason I want to transfer this funds out of the UK to someone that is
not be associated to me.I have the courage to look for a reliable and honest person who
will be capable for this important transaction.
In order to transfer out (Three Million Pounds Sterling) after going through some old
files,I discovered that if I do not remit this money out
urgently, it will be forfeited for nothing during auditing.
You will not spend a single penny to acquire this transaction since I have concluded with
an investor who is going to assist us financially raise the required funds for this
transaction. All I need is a maxed out (empty)Home/Business Line of credit account for the
transfer. The reason for this account will be given you as soon you indicate your interest
to do business with me.
25% will be for you while 70% will be for me and my attorney and 5% will be for the
expenses that will be made by the both party. Remember this is confidential and 100% legal
and risk-free.
I will forward more information to you upon your urgent response.
Thanks sincerely,
Mr. William Palmers
Jefferson: Alleged Bribe Money Given by FBI
From Constance Ikokwu in Washington D.C, 06.09.2007
Embattled United States Congressman, Rep William Jefferson told journalists yesterday that the $90,000 found in his residence was given to him by the United State's Federal Bureau of Invest-igations (FBI) to pass on to former Vice President Atiku Abubakar. Speaking shortly after he pleaded not guilty to charges of bribery and corruption leveled against him by a Grand Jury in Alexandria, Virginia, Jefferson said his failure to do so had put paid to the agency's plan.
"Did I bribe a foreign official? Absolutely not. The $90,000 was FBIs money. The FBI gave it to me as part of the plan; part of their plan that I would give it to the Nigerian Vice President. But I did not do that," he said.
Jefferson who was indicted Monday on 16 criminal counts including racketeering, soliciting bribes, wire fraud, money-laundering, obstruction of justice, conspiracy and violations of the Foreign Corrupt Practices Act put up a stout defense saying he was innocent.
AP quotes him as saying: “I am absolutely innocent of the charges that have been leveled against me…. I'm going to fight my heart out to clear my name.”
US viewers were inundated with television pictures of a visibly shaken Jefferson and his lawyers heading in and out of the courts to clear his name. But this is the beginning of what may yet be another long battle to convince judges that he was not guilty of charges leveled against him, after a two-year investigation into his business dealings in several African countries including Nigeria.
A federal judge has frozen Jefferson’s accounts and he was ordered to surrender his passports. His movements were also restricted to Louisiana and the Washington D.C. area. Any international travels would require an app-roval. He is not allowed to keep shotguns and rifles in his Louisiana home alt-hough he claims they were for hunting.
If convicted, Jefferson could face a maximum sentence of 235 years. He was released on a $100,000 unsecured bond.
Jefferson was re-elected to the House last year in spite of the investigations. He has however resigned from the House Small Business Commi-ttee following his indictment Monday.
Meanwhile, the House Ethics Committee has voted to expand its investigation of the case to include all the subjects in the 16 count indictment. The trial will commence on January 16, 2008.
In reaction to the Grand Jury report, which noted that the former Vice President had acquiesced to a bribe offered in the form of a percentage, Atiku's campaign organisation had maintained that the politician was simply an innocent victim of fraud. "Congres-sman Jefferson has proved to be a conman who tried to use my name to milk his business partners of thousands of dollars he puportedly paid to Nigerian officials as bribes," part of the press statement said.
Jefferson Probe Resumed
By LARRY MARGASAK
Associated Press Writer
The House ethics committee voted Thursday to expand its investigation of indicted Rep. William Jefferson, D-La., to include any subject in a 16-count corruption indictment handed up earlier in the week.
The committee made no mention of possibly expelling Jefferson, even though the House on Tuesday passed a Republican-sponsored resolution directing the panel to report on whether expulsion was warranted.
The ethics committee authorized an investigation of Jefferson last year, and Thursday's vote in closed session reauthorized the probe.
A four-member investigative subcommittee was asked to determine whether Jefferson violated the House's Code of Official conduct or any law, rule, regulation or other standard.
'We are committed to ensuring that proceedings involving Rep. Jefferson are conducted in a fair manner, and in accordance with the processes established by the committee's standing rules and established precedent,' said a statement by panel Chairman Stephanie Tubbs Jones, D-Ohio; and senior Republican Doc Hastings of Washington state. The committee has an equal number of Democrats and Republicans.
The resolution approved by the House, 373-26, directed the committee 'to investigate without further delay alleged illegal conduct and violations of House rules by Representative William J. Jefferson and report its findings and recommendations to the House, including a recommendation regarding whether Representative Jefferson should be expelled from the House.'
The indictment Monday accused Jefferson of receiving more than $500,000 in bribes and seeking millions more in nearly a dozen separate schemes to enrich himself by using his office to broker business deals in Africa.
The charges came almost two years after investigators raided Jefferson's home in Washington and found $90,000 in cash stuffed in his freezer.
The indictment's 16 counts included racketeering, soliciting bribes, wire fraud, money laundering, obstruction of justice and conspiracy. He faces a possible maximum sentence of 235 years.
Also Thursday, a federal judge froze Jefferson's assets.
The restraining order issued by U.S. District Judge T.S. Ellis III lists two savings accounts with Dryades Savings Bank and Chevy Chase Bank with a combined value of more than $470,000, plus certain stock holdings that Jefferson is barred from liquidating.
Nearly all the cash is in an account belonging to The ANJ Group LLC. The indictment says it is a Louisiana company established in 2001 and controlled by Jefferson's family.
A second, smaller account is under the name W2-IBBS, Limited, which according to the indictment was established in Nigeria and controlled by the informant whose complaints about Jefferson sparked the investigation.
The indictment states that Jefferson demanded an ever larger share of that company - first 5 percent and then finally a 30 percent stake - in exchange for his help brokering a telecommunications deal.
The order also freezes other unspecified accounts controlled by U.S. financial institutions.
A spokeswoman for Jefferson's lawyer, Robert Trout, said the judge's order is being reviewed, and he declined to comment further.
Jefferson is the first U.S. official to face charges under the Foreign Corrupt Practices Act, which prohibits corporate bribery overseas.
In the House probe, Rep. William Delahunt, D-Mass. will head the investigation along with Rep. John Kline, R-Minn. The other members are Reps. Keith Ellison, D-Minn. and Tom Latham, R-Iowa.
Jefferson is scheduled to be arraigned Friday in U.S. District Court in Alexandria, Va.
Atiku: I Was a 419 Victim
• Gani, Falana ask EFCC to prosecute ex-VP
From Andy Ekugo in Abuja and Davidson Iriekpen in Lagos, 06.08.2007
Jefferson Saga
Former Vice President, Alhaji Atiku Abubakar, said yesterday that he was a victim of a 419 scam in the controversial United States Congressman Williams Jeffer-son saga.
Atiku, who was reacting to THISDAY story on the US Grand Jury report on the congressman, said the report of the jury showed that he was an innocent public official who, in the discharge of his functions, was exposed to a conman who dropped his name to swindle unsuspecting businessmen.
Speaking through his campaign organisation in a statement issued in Abuja, the former vice president denied that he agreed to take Jefferson's bribe to influence any business transaction in Nigeria. He described the report as "untrue and mischievous".
But Lagos lawyer, Chief Gani Fawehinmi (SAN), and the President of West Africa Bar Association (WABA), Mr. Femi Falana, said it was clear from the indictment of Jefferson in the American court that Atiku "definitely" has a case to answer.
The Convener of United Action for Democracy (CUAD), Mr. Bamidele Aturu, and another lawyer, Mr. Festus Keyamo, however disagreed with Fawehinmi and Falana, saying Nigerians should not jump into conclusion yet over the issue.
THISDAY had yesterday quoted the Grand Jury report which said Atiku agreed to accept a bribe in the form of a percentage in order to assist Jefferson secure a business deal in the country. This allegation is part of the basis on which Jefferson would be tried on a 16-count charge in an American court.
In a detailed account of the congressman's dealings, the 94-page report which indicted Jefferson, entitled "United States of America V. Williams J. Jefferson," referred to Atiku as "Nigerian Official A... a high ranking official in the executive branch of the Government of the Federal Republic of Nigeria," who "acted in an official capacity for and on behalf of the Federal Republic of Nigeria."
It revealed that the congressman received the sum of $100,000 from his cohorts meant as bribe money to the former vice president.
THISDAY had indeed also reported that Atiku has repeatedly denied asking for or receiving bribe in the deal.
In the statement issued by his campaign organisation yesterday, the former vice president was also unhappy that the THISDAY report suggested that he would have been prosecuted in the US save for the fact that he was a foreign citizen.
He said the war against graft and related financial crimes was a borderless one, stating that he would have been prosecuted wherever he may be.
The former vice president said the story was a "doctored and falsely reported conclusions of the US Grand Jury Report."
"I have said for the umpteenth time that in my brief meeting with Congressman Jefferson, I neither solicited nor did the US lawmaker offer me any material inducement for any assistance in respect of his business dealings in Nigeria.
"The Grand Jury report cited by a national newspaper in its highly libelous publication yesterday contained only an allegation by Jefferson that I had agreed to a share of the profit from his communications business in return for some assistance. This is totally untrue.
"Congressman Jefferson has proved to be a conman who tried to use my name to milk his business partners of thousands of dollars he purportedly paid to Nigerian officials as bribes", Atiku said.
In his view, the report of the Jury clearly shows that he (Atiku) is an innocent public official who in the discharge of his functions was exposed to a conman who continuously dropped his name before unsuspecting businessmen to swindle them.
"In the Nigerian parlance, Atiku was a victim of a 419 scam whose name was dropped by the 419ner to swindle unsuspecting businessmen," he said.
Atiku said the story which he described as part of a sustained but vain attempt to smear his integrity "not only failed to take cognizance of the import of the 94-page report of the American Jury on the Jefferson saga, it was also a condemnable selective reporting that stands logic and evidence on its heads to satisfy the malicious intentions of its sponsors."
According to him, the report of the US Jury, states "on or about July 18, 2005, following the meeting with Nigerian official A, Defendant Jefferson and CW traveled from Potomac, Maryland, to Mclean Virginia where Defendant Jefferson, informed CW (co-operating witness), that, during his private meeting with Nigerian official A, Defendant Jefferson had offered, and Nigerian Official A had agreed to accept, a bribe in the form of a percentage of the profits generated by the Nigerian Joint Venture in exchange for Nigerian official A's official assistance in securing necessary approvals from NITEL."
He further explained that the conclusion of the jury was based on the taped conversation between Jefferson and the businessman he was persuading to part with money as bribe allegedly meant for him (Atiku).
He decried the omission of the second leg of Jefferson's claim "which hard evidence eventually proved Jefferson as dropping his name to swindle the businessman who was accompanied by FBI operatives disguised as his company."
"Congressman Jefferson had sought and collected $100,000 from the same 'businessman' on the pretext that he was taking it to Atiku Abubakar. He also reported to the businessman on tape on August 1, 2005 that he had given the $100,000 to Vice President Abubakar," he said.
That claim, Atiku continued, informed the search on the house of his wife on August 3, 2005 during which the money was not found. The former vice president, however, added that when FBI searched the house of Jefferson on August 3, 2005, $90,000 of the marked $100,000 was found secretly stashed in $10,000 parcels, wrapped in aluminium foil and hidden in the food freezer by Congressman Jefferson.
He wondered why the claims of Jefferson should be found tenable even when hard evidence had clearly proved otherwise. He reiterated that he was requested to see Congressman Jefferson by the Nigerian Embassy in the US and that at the meeting he had with Jefferson, he was informed of a Foreign Direct Investment interest in Nigeria by an American company, iGate, which sought to deploy a new technology using the Copper Cables of NITEL.
The promise was that of a venture that would enhance the revenue profile of NITEL, enhance telephony service in Nigeria and crash the price of telephone service in the country, he said.
"While we do not intend to go into the propriety of the actions of Congressman Jefferson in the matter, we wish to draw attention to the fact that the iGate business venture, which started with Jefferson offering his assistance ended with him bringing at least five members of his family as directors, consultants or legal advisers to the company he was assisting. The 94-page Jury report was replete with instances of Jefferson making false claims to secure cash, stock and traveling expenses from the businessmen who eventually became suspicious," Atiku added.
He also stated that "at the time the scam burst, Jefferson had collected about USD3.5 million and several millions of stock and trips expenses to Ghana and Nigeria from the businessmen. Not less than seven of his companies had been dragged into the venture and five of his family members had become beneficiaries of the business initiative. Not one private benefit had been traced to Atiku. Not a dime of this amount was traced to Atiku by the FBI. It is evident that Atiku's name had only become a veritable asset which Jefferson used to swindle his victim," he said.
Speaking on the issue yesterday, Lagos lawyer, Fawehinmi said the former vice president deserved to be prosecuted for the deal. "It is clear from the indictment of Jefferson in the American court that Atiku definitely has a case to answer and I think the EFCC should swing into action because from the indictment against Jefferson, there is definitely a basis to proceed against Atiku in the appropriate criminal court in Nigeria," he said.
Fawehinmi said there must be no delay in the matter, adding: "Nobody, I repeat, nobody must be seen to be above the criminal law of Nigeria. The EFCC must do its duty and charge Atiku to court."
Falana on his part, said in the reports, there were "copious references" to the transaction involving Jefferson and Atiku, who was described as Mr. A. in the report. He said having regard to the description of the house of the former vice president in Maryland, USA, which was thoroughly searched in the course of the investigation, there was no doubt that the former VP had a case to answer.
According to him, "the report by the FBI (Jefferson's indictment), has no doubt corroborated the indictment of the former VP by EFCC, the Chief Bayo Ojo Administrative Panel and the two committees of the senate."
Falana lamented that whereas in the Nigerian situation, the former VP's indictment was politicised, in the US, Congressman Jefferson has not alleged any political victimisation even though he belongs to the Democratic Party while President George W. Bush is in the Republican Party.
But CUAD convener, Aturu, disagreed with Fawehinmi and Falana, saying the indictment of Jefferson was still a mere charge. "Jefferson has not been proven guilty of an offence. So it has absolutely nothing to do with Atiku. It has no legal effect on Atiku," he said. He advised Nigerians to wait for the proceedings in the US to be completed before jumping into conclusions.
Corroborating Aturu's views, Festus Keyamo said the provision of the law was that one cannot condemn a person that has not been heard from even when there was an indictment. "Even when there was an indictment of Atiku in the said report, he (Atiku) was not the person on trial in that instance. That does not mean we should cover Atiku if he has done anything wrong. He has to be placed on a separate trial and given a fair hearing. We cannot condemn him based on the trial of another person where a reference was incidentally made about him."
US Jury: Atiku Agreed to Take Jefferson’s Bribe
From Constance Ikokwu in Washington DC, 06.07.2007
Former Vice-President, Alhaji Atiku Abubakar, agreed to accept a bribe in the form of a percentage in order to assist United States Congressman, William Jefferson, secure a business deal in Nigeria, according to the US Grand Jury report which indicted Jefferson for racketeering, soliciting bribes, wire fraud, money-laundering, obstruction of justice, conspiracy and violations of the Foreign Corrupt Practices Act.
Giving a blow-by-blow account of Jefferson’s dealings, the 94-page indictment entitled "United States of America V William J Jefferson" which referred to Atiku as a “Nigerian Official A… a high-ranking official in the executive branch of the Government of the Federal Republic of Nigeria” who "acted in an official capacity for and on behalf of the Federal Republic of Nigeria" revealed that the Congressman received the sum of $100,000 from his cohorts meant as bribe money for the former vice-president.
Atiku has, however, consistently denied asking for or receiving bribe in the deal which had sparked off an investigation of the US congressman.
The Nigerian aspect of the investigation led to the indictment of Atiku by the Economic and Financial Crimes Com-mission (EFCC), an Admin-strative Panel of Inquiry headed by Chief Bayo Ojo as well as two panels set up by the last Senate over the management of the finances of the Petroleum Technology Development Fund (PTDF).
The grand jury indictment said: “On or about July 18, 2005, following the meeting with Nigerian Official A, Defendant Jefferson and CW traveled from Potomac, Maryland, to Mclean, Virginia, where Defendant Jefferson informed CW (co-operating witness) that, during his private meeting with Nigerian Official A, Defendant Jeff-erson had offered, and Nig-erian Official A had agreed to accept, a bribe in the form of a percentage of the profits generated by the Nigerian Joint Venture in exchange for Nigerian Official A’s official assistance in securing necessary approvals from NITEL.
“On or about July 30, 2005, in Arlington, Virginia, Defendant Jefferson received $100,000 in cash from CW for delivery by Defendant Jefferson to Nigerian Official A… On or about July 30, 2005, following the meeting with CW, Defendant Jefferson drove his car with the $100,000 in cash from Arlington, Virginia, to his residence in Washington D.C.”
Although the report did not indict Atiku personally, it gave further details of what transpired between him, his wife and the US Congressman. In one instance, page 26 of the indictment stated that Jefferson suggested ways in which the bribe money could be received by Atiku’s wife who the report says “lived in Potomac, Maryland.”
“On or about June 8, 2005, in Washington D.C, Defendant Jefferson explained to CW potentials ways in which Nigerian Official A could receive the bribe payments, such as through making payments to a charitable foundation run by Nigerian Official A’s spouse and giving Nigerian Official A a share of the profits from the Nigerian Joint Venture.”
It also said Jefferson had a meeting with Nigerian Official A’s spouse where he discussed with her the threat posed to the Nigerian Joint Venture by a Chinese company and therefore requested a meeting with "Official A", promising to “provide things of value” to the official.
According to the report, investigations began when "CW", who is also a businessman, reported a suspected fraud involving iGate, Vernon Jackson (then CEO and Chairman of the Board of iGate, a Louisville, Kentucky telecommunications firm) and Jefferson to the Federal Bureau of Investigation (FBI) in or about March 2005. "CW" thereafter acted as cooperating witness for the government.
Earlier in August 2004, Jefferson, "CW", "Nigerian Businessperson B" and others negotiated "a joint venture agreement between different companies to pursue a telecommunications business in Nigeria using iGate technology and equipment. The joint venture required a high-ranking Nigeria official to direct NITEL to provide it with access to telephone lines in the country."
"CW", according to the report, said there was no need to bribe "Nigerian Official A" because "Nigerian Businessperson B" had reached an agreement with NITEL. But it would appear Jefferson did not want to take chances. As a result, he allegedly discussed the possibility of paying bribes with "CW".
“On or about May 31, 2005, in Washington D.C., Defendant Jefferson discussed with CW the possibility of paying bribes to Nigerian government officials to advance the Nigerian Joint Venture, stating “I would rather take care of it, rather than have [Nigerian Businessperson B] take care of it….I’m talking about with elected people and big shots, okay?”
Thereafter, Jefferson composed a letter on congressional letterhead addressed to "Nigerian Official A" which among other things: “(a) requested that Nigerian Official A intervene with NITEL to secure the Nigerian Joint Venture’s right to co-locate its equipment at NITEL facilities and use NITEL’s telephone lines; (b) sought a meeting with Nigerian Official A during that official’s trip to the United States in July 2005.”
Or about June 21, 2005, Jefferson had the letter delivered to Nigerian Official A’s Spouse. The letter allegedly gave details of financial projections of revenue to be generated by the Joint Venture and profits to be made.
The first meeting between Jefferson and "Nigerian Official A" took place on or about July 18, 2005 at the residence of "Nigerian Official A" in Potomac, Maryland. There, Jefferson “offered to pay a bribe to induce him to use his position to assist in obtaining commitments from NITEL for the benefit of the Nigerian Joint Venture,” said the report.
It was after this meeting that Jefferson, according to the report, said "Nigerian Official A" had agreed to accept the bribe money. He assured his cohorts that they had secured a business deal, having spoken with Nigerian Official A.
“On or about July 21, 2005, in Washington D.C., Defendant Jefferson assured CW that they had “a deal with [Nigerian Official A],” explaining that the bribe to Nigerian Official A would consist of: (a) front-end payment of $500,000 to Nigerian Official A that would ensure that the “little hook is in there”; and (b) a “back-end” payment of at least half of Nigerian Company B’s shares of the Nigerian Joint Venture’s profits.”
On or about July 30, 2006, Jefferson received the $100,000 meant for Nigerian Official A. On August 3, 2005, the report says Jefferson wrapped $90,000 of the $100,000 bribe money in aluminum foil and hid it in the freezer of his Washington D.C. apartment, inside various frozen food containers.
It also revealed that Jefferson had corruptly agreed to receive things of value from Companies D and E to be paid through a family member, in the form of percentage share of the contract price for Companies D and E to perform a feasibility study and possible future construction of a sugar plant in Jigawa State, bribe from Companies D and E for assistance to advance their effort to obtain contracts to develop various food processing facilities in Kaduna State and bribes from Company F in return for assistance to advance Company F’s efforts to obtain rights to develop marginal oil fields in Akwa-Ibom State.
At the end of the report, Jefferson was indicted on 16 charges but "Nigerian Official A" was not. This may be due to the fact that Jefferson was treated as a “domestic concern” while Nigerian Official A was a “foreign official.”
But when THISDAY contacted the US Ministry of Justice, a spokesperson noted that investigations were still “on-going and that there’s a possibility that others could be indicted in the future.”
Sao Tome and Principe’s trade deficit totals US$16.1 million in first quarter [ 2007-06-05 ]
Sao Tome, Sao Tome and Principe, 5 June – Sao Tome and Principe has posted a trade deficit of US$16.1 million in the first quarter of the year, which is 26.2 percent more year on year according to the archipelago’s National Statistics Institute (INE).
The figures showed that from January to March the trade deficit totaled 210 billion dobras, or US$16.1 million.
In the same period, exports and imports rose 26.6 percent and 41.1 percent, respectively.
From January to March 2006, the trade deficit was US$12.8 million, resulting form imports of US$13.2 million and exports of US$402,000, according to Sao Tome’s INE.
In 2006, Sao Tome’s trade deficit totaled US$64.3 million, which was an increase of 71 percent against 2005. (macauhub)
Rep. Jefferson Indicted in Bribery Probe
By LARA JAKES JORDAN
Associated Press Writer
Rep. William Jefferson, D-La., was indicted Monday on federal charges of racketeering, money-laundering and soliciting more than $400,000 in bribes in connection with years of trying to broker business deals in Africa.
The charges came almost two years after investigators raided Jefferson's home in Washington and found $90,000 in cash stuffed in a box in his freezer.
The indictment in federal court in Alexandria, Va., lists 16 alleged violations with prison terms totaling as much as 235 years. Jefferson is charged with racketeering, soliciting bribes, wire fraud, money laundering, obstruction of justice and conspiracy.
He is the first sitting congressman to face charges under the Foreign Corrupt Practices Act, which prohibits corporate bribery overseas.
Jefferson is accused of soliciting bribes from 11 different companies for himself and his family, and also of bribing a Nigerian official. The scheme was complicated and Jefferson set up a front company to hide the money, prosecutors said.
'But the essence of the charges are really very simple: Mr. Jefferson corruptly traded on his good office and on the Congress,' said Chuck Rosenberg, the U.S. attorney for eastern Virginia.
The 60-year-old Jefferson, whose Louisiana district includes New Orleans, has said little about the case publicly but has maintained his innocence. He was re-elected last year despite the investigation.
Joseph Persichini, who leads FBI's Washington field office, called on the public to 'take the time, read this charging document line by line, scheme by scheme, count by count. This case is about greed, power and arrogance.'
Jefferson, in New Orleans on Monday, could not immediately be reached for comment. His lawyer was planning an afternoon news conference.
House Speaker Nancy Pelosi is expected to push this week for Jefferson to be stripped of his seat on the Small Business Committee, according to a leadership aide who spoke on condition of anonymity because the decision had not yet been announced.
'If these charges are proven true, they constitute an egregious and unacceptable abuse of public trust and power,' said Pelosi, D-Calif. 'Democrats are committed to upholding a high ethical standard and eliminating corruption and unethical behavior from the Congress.'
House Republican Leader John Boehner of Ohio said Jefferson should be expelled from Congress if he is found guilty and refuses to resign.
'The American people rightfully expect the highest ethical standards from their elected leaders,' Boehner said.
Two of Jefferson's associates have struck plea bargains with prosecutors and have been sentenced.
Brett Pfeffer, a former congressional aide, admitted soliciting bribes on Jefferson's behalf and was sentenced to eight years in prison.
Another Jefferson associate, Louisville, Ky., telecommunications executive Vernon Jackson, pleaded guilty to paying between $400,000 and $1 million in bribes to Jefferson in exchange for his assistance securing business deals in Nigeria and other African nations. Jackson was sentenced to more than seven years in prison.
Both Pfeffer and Jackson agreed to cooperate in the case against Jefferson.
The impact of the case has stretched across continents and even roiled presidential politics in Nigeria. According to court records, Jefferson told associates he needed cash to pay bribes to the country's vice president, Atiku Abubakar.
Abubakar denied the allegations, which figured prominently in that country's presidential elections in April. He ran for the presidency and finished third.
The indictment does not name Abubakar. But it describes Jefferson's dealings with an unnamed 'Nigerian Official A' who was a high-ranking official in Nigeria's executive branch who had a spouse in Potomac, Md. One of Abubakar's wives lived in that Washington suburb. Rosenberg would not confirm that person was Abubakar.
Court records indicate Jefferson was videotaped taking a $100,000 cash bribe from an FBI informant. Most of that money later turned up in the freezer in Jefferson's home.
In May 2006, the FBI raided Jefferson's congressional office, the first such raid on a congressman's Capitol office. That move sparked a constitutional debate over whether the executive branch stepped over a boundary.
The raid's legality is still being argued on appeal. House leaders objected to the search, saying it was an unconstitutional intrusion on the lawmaking process. The FBI said the raid was necessary because Jefferson and his legal team had failed to respond to requests for documents.
Some but not all the documents seized in the raid have been turned over Justice Department prosecutors.
Assistant Attorney General Alice Fisher said the documents helped being the case against Jefferson. 'Some of those documents that we were able to obtain through the process have indeed supported the charges that are presented today,' Fisher said.
Russian firm to invest N130b in Nigeria, others this year
From Kelechi Okoronkwo, Abuja
ORIENTAL capital influx into the continent may have attained further upswing profile as Renaissance Capital, a Moscow Russia-based brokerage firm, has made known its plans to increase its investment in Nigeria and other African countries to at least $1 billion (N127.6 billion) this year.
Stephen Jennings, the founder of the Moscow brokerage firm, in a statement recently, said he was shifting his focus to African countries as a result of declining capital gain on Russian blocks.
The company had, last month, helped United Bank for Africa Plc (UBA) organises a $300 million shares sale and also stated that it expected to underwrite its first African corporate debt in July.
Also, the company's private equity arm, Renaissance Partners, already has $500 million of assets in Africa, including a 25 per cent stake in Ecobank Transnational Incorporated.
Jennings said he was planning to open a Dubai office to help channel oil money from the Persian Gulf into Africa. Having offices in Lagos-Nigeria and in Nairobi-Kenya already, he stated that he wanted to use those outlets to challenge China, which according to him is the biggest foreign investor, presently, in Africa.
He also stated that Africa's longest expansion in more than three decades was increasing demand for capital from overseas even as International Monetary Fund (IMF), last month, raised its economic growth forecast for Africa to 6.8 this year from 5.7 per cent in 2006, boosted by oil exporting Angola and Nigeria.
His words: "Africa is going through an enormous renaissance and unlike Russia in the 1990's, it's not a matter of imagining that it might happen, it is happening".
"With the exception of the Chinese, we will be one of the largest investors in the region. We have the ability and capacity to make quite big investment and bring in co-investors".
Jennings said the boom in Russian initial public offerings and mergers, growing markets in Kazakhstan and Ukraine and an asset management business that had surged 1000-fold since 2003 to $4 billion was helping him to expand beyond equities trading.
"The profit of Renaissance Capital, which includes the brokerage and investment bank units rose 59 per cent last year to $301 million. The bank's return on equity was 64 per cent".
"Renaissance Capital is part of Renaissance group, which also owns a private equity firm, a consumer lending bank and asset management arm". Jennings stated.
Norwegian company plans to help Sao Tome and Principe carry out oil bloc auction [ 2007-06-04 ]
Sao Tome, Sao Tome and Principe, 4 June – Norway’s Petroleum Geo-Service (PGS) has made itself available to provide technical assistance to Sao Tome and Principe in auctioning off oil blocs in the archipelago’s exclusive area in 2008, the company’s vice-president said Friday in Sao Tome.
Dan Whealing told journalists that his company had concluded and presented to the government the process relating to seismic surveys of the archipelago’s exclusive economic area.
“PGS has already concluded the work on seismic surveys and is available to provide assistance to Sao Tome and Principe in the bloc auction,” said Whealing on leaving a meeting with Sao Tome prime minister, Tomé Vera Cruz.
The seismic survey, carried out based on an agreement set up in 2001 with Sao Tome and Principe, the seismic surveys identify geological structures that may contain hydrocarbons, in an area of 10,870 square kilometers in deep waters of the archipelago's seas.
PGS's seismic data was reassessed a little over a month ago by UK company British Geological Survey, contracted by Sao Tome and Principe's national Oil Agency.
As well as its exclusive area, Sao Tome and Principe also has a joint exploration area with Nigeria base don a treaty stating that Nigeria receives 60 percent of revenues while 40 percent goes to Sao Tome. (macauhub)
Atiku: Congressman Jefferson Indicted
•Fawehinmi urges EFCC to prosecute Obasanjo, ex-VP
From Constance Ikokwu in Washington DC and Phillip Ogunmade in Lagos, 06.05.2007
United States Congre-ssman William Jefferson of New Orleans was yesterday indicted on corruption charges in a long-running bribery investigation into business deals he tried to broker in Nigeria and some other African countries.
Among the charges listed in the indictment, said the official, are racketeering, soliciting bribes, wire fraud, money-laundering, obstruction of justice, conspiracy and violations of the Foreign Corrupt Practices Act.
The Jefferson probe had reverberated in Nigeria when it triggered the Economic and Financial Crimes Commission (EFCC) investigation in to the activities of the Petroleum Technology Development Fund (PTDF), which former Vice President Atiku Abubakar was then supervising.
Just yesterday, Lagos lawyer, Chief Gani Fawehinmi (SAN), urged the EFCC to arraign former President, Chief Olusegun Obasanjo and Atiku Abubakar over allegations of self enrichment and corruption.
The Associated Press reported that the indictment, handed up Monday in federal court in Alexandria, Virginia, is 94 pages long and lists 16 alleged violations of federal law.
AP quoted a Justice Department official, who though was not authorised to discuss the case but has seen the document, as saying that the violations could keep Jefferson in prison for up to 235 years.
For two years, Jefferson has been the target of the investigation into whether he took bribes in return for using his influence to promote the business deals. He has consistently denied any wrongdoing.
Jefferson is accused of soliciting bribes for himself and his family, and also for bribing a Nigerian official.
The 63-year-old lawmaker, whose Louisiana district includes New Orleans, has said little about the case publicly but has maintained his innocence. He was re-elected last year despite the looming investigation.
He has been under suspicion in connection with his efforts to promote contracts in Africa for iGate, a small digital-technology company based in Louisville, Kentucky. The Congressman has been influential on African issues in his years in the House.
The head of the technology company, Vernon L. Jackson, has already pleaded guilty to paying more than $400,000 and $1 million in bribes in exchange for his assistance in securing business deals in Nigeria and other African nations. Jackson was sentenced to seven years in prison.
In 2005, as the inquiry progressed, Federal Bureau of Investigation (FBI) agents raided Jefferson’s home, opened a freezer and found $90,000 in cash, money the investigators said was intended for a bribe of a Nigerian politician on behalf of Jackson.
In return for promoting the digital company in Africa, the Congressman demanded part-ownership of the business for his family, investigators have alleged.
Investigators maintain that Jefferson prodded the Pentagon to test iGate products, lobbied politicians in several African countries to include the company in telecommunications projects, and repeatedly urged the Export-Import Bank of the United States to finance the deals.
Brett Pfeffer, a former congressional aide, also admitted soliciting bribes on Jefferson's behalf and was sentenced to eight years in prison.
Both Pfeffer and Jackson agreed to cooperate in the case against Jefferson in exchanges for their pleas.
The impact of the case stretched across continents and even roiled presidential politics in Nigeria.
According to court records, Jefferson told associates that he needed cash to pay bribes to former Vice President, Alhaji Atiku Abubakar.
Though the former Vice President denied the allegations, it however triggered a series of investigations in Nigeria and figured prominently in the April Presidential election.
Court records indicate that Jefferson was videotaped taking a $100,000 cash bribe from an FBI informant. Most of that money later turned up in a freezer in his home.
In May 2006, the FBI also raided Jefferson's congressional office, the first such raid on a sitting congressman's Capitol office. That move sparked a constitutional debate over whether the executive branch stepped over its boundary.
The legality of the raid is still being argued on appeal. House leaders objected to the search saying it was an unconstitutional intrusion on the lawmaking process. The FBI said the raid was necessary because Jefferson and his legal team had failed to respond to requests for documents.
Some but not all the documents seized in the raid have been turned over Justice Department prosecutors.
Meanwhile, Lagos lawyer, Chief Gani Fawehinmi (SAN), yesterday urged the EFCC to arraign former President, Chief Olusegun Obasanjo and his vice, Atiku Abubakar over allegations of self enrichment and corruption.
He made the call during the wreath laying ceremony in remembrance of Alhaja Kudirat Abiola, wife of the late business mogul, Chief Moshood Abiola, who was killed on June 4, 1996 at the heat of the struggle for the actualisation of June 12 Presidential election believed to have been won by Abiola.
Fawehinmi appealed to the commission, which he said had hitherto done well in the fight against corruption, to commence the process of prosecuting both Obasanjo and the former Atiku.
Licensing round: Operators protest imposition of local partners
By Yakubu Lawal, Deputy Energy Editor
WINNERS in the last oil block bid round conducted at the twilight of former President Olusegun Obasanjo's regime are protesting the imposition of local content investors by the Department of Petroleum Resources (DPR), under its Local Content Vehicle (LCV) to the blocks.
The Guardian gathered that many local investors favoured by the Presidency are being asked to be given 10 per cent equity in the oil block won by the prospective companies that were successful in the exercise.
Specifically, the sources said the Presidency may direct the Ministry of Energy, through the DPR, to attach the local companies with 10 per cent equity in the blocks, rather than allowing the prospective winners to come up with their LCV operators.
One of the winners in the bid round who spoke with The Guardian said DPR is now forcing local companies on them, a move considered by the company as negating the rules and guidelines for the 2007 bid round.
"What is happening now is that the DPR is forcing local companies on us in the name of LCV. This is contrary to the rules of the bid exercise, because we have been told that government will not interfere with the selection of LCV operators who will control 10 per cent in the venture," one of the winners said.
The sources stated that with this development, most companies who participated and won oil blocks in the 2007 bid round might not be able to sign the Production Sharing Contract (PSC) before the end of this administration, stating that the partners will need time to draft joint operating agreement, which will form the basis of their business or working together.
The sources also stated that for government to now force companies on them under a "force marriage content" will not help, as past experiences of 2005 and even the bid round are yet fully consummated.
"They tried this force marriage or partnership in the previous round and there was no good result, so how do they think it will work this time around," the industry operator queried.
Though, with the change of government last week, it was not clear whether President Umar Musa Yar' Adua will approve the violation of the guidelines. Already, the PSC could not be signed because most of the winners felt that force marriage by way of imposing local operators on them under the LCV scheme will not help their couse.
A member of the Presidential Committee on the bid round told The Guardian that most of the things that were done and still being done are issues that the committee is not aware of, adding that it would be improper to force any company on the winners since a decision has already been taken before the bid round that prospective investors should go out on their own to seek local partners that they would be able to work with.
The sources said though pressure from the Presidency on matters like this cannot be ruled out, but that for accountability and transparency, people should be allowed to play according to the rule.
"Those who want to participate in the LCV know too well those who won the blocks at the last bid round exercise. Rather than going to the president for such a favour, they should meet those companies and negotiate with them," the sources said.
"From what is happening now, I am not sure we will be able to sign any PSC or hand over the block to the winners before the end of next week. There are a lot of issues that are pending, "the sources said.
Officials of DPR said though many companies have brought notes from the Presidency to be considered as LCV operator, but the final say will still lie with the president or the minister of Energy who could also exercise such power after consulting with the president.
The Minister of Energy, Dr. Edmund Daukoru, had stated at the opening of the commercial bid round for 2007 that no indigenous company would be attached for the 10 per cent local content vehicle (LCV) equity in the exercise, as prospective bid winners are expected to get their own local partners in the block for this purpose.
Daukoru said the idea was to avoid the crisis that characterised the 2005 mini bid round where many local companies who were attached to a block could pay their counterpart fund.
Many of the companies so attached were also engrossed in moves urging their senior partners to carry them or paying their counterpart fund while they remain as dormant partners who only wait for the period when oil is produced from the field, only to participate in the sharing of oil profit.
Director, DPR, Mr. Tony Chukwueke, also reiterated that the department would not want to be dragged into issues arising between the operators and the LCV partners.
"This time around, we don't want anybody to get the department involved in LCV, we are not going to attach anybody, winners should look for their LCV partners and come and sign the pact in our presence. How you intend to operate or relate is your business, DPR will not be part of the process," he stated.
Out of the 45 oil blocks that were put on sale, less than 20 blocks were sold to prospective bidders, realising about $600 million as signature bonus.
Homeport: Very Curious To See How This Plays Out. The Russians aren't known for playing nice in these types of situations.
Following Paris Club Sao Tome and Principe wants Portugal and Angola to pardon debt [ 2007-05-31 ]
Lisbon, Portugal, 31 May – Sao Tome and Principe obtained a debt pardon from the Paris Club and now wants Portugal and Angola to follow that example, said Zeferino Ceita, advisor to the archipelago’s Planning and Finance Minister.
Speaking over the telephone to Portuguese news agency Lusa, Ceita said that the Sao Tome government had recently had “verbal” guarantees from Portugal’s Finance Ministry that existing debt will be dropped – of around US$10 million.
Angola is currently the archipelago’s main creditor, with debt owed of US$20 million, with so far inconclusive discussions for the debt to be pardoned currently underway.
Total debt to bilateral creditors currently stands at US$80 million, while the country owes almost US$1 million to the Paris Club, with the entire balance of debt to the International Monetary Fund (IMF) and World Bank dropped in March.
The Paris Club, which brings together 19 creditor nations, last week pardoned US$24 million in debt, and committed to negotiating the pardon of the remaining 13 percent.
According to Ceita, this pardon, along with a potential one from Portugal and Angola, will reduce debt servicing responsibilities for the archipelago.
Until last year Sao Tome is the most indebted Portuguese-speaking nation, with foreign debt equivalent to 1,665 percent of its annual exports of goods and services, taking into account an average for between 2002 and 2004, according to World Bank figures.
Alongside negotiations with bilateral creditors, the Sao Tome Finance Ministry wants to move ahead with legislation to set limits for State debt-levels and define the channelling of financing taken on, “to prevent what has happened in the past,” Ceita said. (macauhub)
Sao Tome and Principe exports US$500,000 in cocoa in first quarter [ 2007-06-01 ]
Sao Tome, Sao Tome and Principe, 1 June – Sao Tome and Principe netted some US$500,000 from cocoa exports in the first quarter of 2007, which accounted for 96.1 percent of the country’s exports in the first quarter, according to the archipelago’s National Statistics Institute (INE).
INE added that between January and March revenue from cocoa exports rose 70 percent when accounted in dobras, the local currency, and that in terms of quantity there had been a rise of 43 percent.
In the list of exports from Sao Tome and Principe, following cocoa, are coconut and coconut oil, fish and flowers accounting for 1.9 percent, 1.1 percent and 0.9 percent of total exports, respectively.
In the same period of 2006, the value of exports was US$290,000, representing 96.4 percent of all exports.
On the archipelago, which relies on foreign aid to cover over 50 percent of its budgetary expenses, the economy is based mainly on the export of agricultural products and cocoa accounts for 27 percent of the country’s gross domestic product (GDP).
In 2006 the archipelago netted US$3.2 million with cocoa exports, which accounted for almost 99 percent of total foreign sales. (macauhub)
President of Equatorial Guinea wants air links with Sao Tome and Principe [ 2007-05-30 ]
Sao Tome, Sao Tome and Principe, 30 May – Sao Tome and Principe and Equatorial Guinea plan to set up an air carrier to carry out links between the capitals of the two countries, said the Guinean president, Teodoro Nguema, who ended a visit to Sao Tome Monday.
Nguema said that the agreement, due to be carried out this year, also included air links with some capitals of the Central African Economic and Monetary Community (CAEMC).
Founded in 1994, the CAEMC is a regional African organization made up of six Central African countries which have a single currency, the CFA Franc, namely, Cameroon, the Central African Republic, Congo Brazzaville, Gabon, Equatorial Guinea and Chad.
Although Sao Tome is not a member of the CAEMC, the president of Equatorial Guinea called for a “profitable” business to be set up with the archipelago, based on flights from Malabo, the capital of Equatorial Guinea, to Sao Tome.
“An agreement for the company to be profitable because we will need economic stability to also cover the CAEMC capital,” Nguema noted while encouraging Sao Tome and Principe to join the organization.
During his three-day visit to the Sao Tome capital, Nguema visited road rebuilding projects financed by Equatorial Guinea.
Just less than a month ago an Equatorial Guinea company presented a proposal to the Sao Tome government to build a new airport and oil port on the autonomous island of Principe, some 150 kilometers from Sao Tome. (macauhub)
Nigerian Leader Seeks to Calm Oil Region
President Umaru Yar'Adua used his inaugural address Tuesday to appeal for an immediate end to the violence that has slashed crude production in Nigeria's oil heartland, and the largest militant group said it would consider the overture.
The prospect of increased output for Africa's biggest oil country and a major U.S. supplier sent prices down on international markets.
Yar'Adua's unusually conciliatory overture highlighted the challenge that oil-related violence poses as he struggles to establish legitimacy after an April election victory denounced as fraudulent by the opposition and called not credible by international observers.
It was in sharp contrast to his predecessor, Olusegun Obasanjo, who considered the militants simple criminals. In his farewell address Monday, Obasanjo didn't even mention the southern oil region and the 18 months of attacks on the oil industry that have cut output by a third.
The 56-year-old Yar'Adua, who had Obasanjo's support in the election, used his first speech as president to say the impoverished Niger Delta's troubles needed 'urgent attention' and he promised to act quickly to address them.
'In the meantime, I urge all aggrieved communities, groups and individuals to immediately suspend all violent activities and respect the law,' he said. 'Let us allow the dialogue to take place in a conducive atmosphere.'
The Movement for the Emancipation of the Niger Delta, which is the biggest militant group in the delta and previously insisted it would not lay down arms until the government met its demands to improve conditions in the region, said it would study the new president's appeal.
'We are considering this request,' a spokesman said in an e-mail to The Associated Press.
Militant groups in the delta say their violence is aimed at forcing the federal government to funnel more oil revenues to the Niger Delta. The government gets the vast majority of its revenue from oil, and many Nigerians complain that corrupt officials siphon off much of the money.
In taking the oath of office before Chief Justice Idris Kutigi, Yar'Adua pledged to uphold Nigeria's unity and pursue its best interests.
He addressed the election controversy head on, agreeing there were flaws in the voting, during which thugs openly sold ballot papers and intimidated voters. He said he would reform Nigeria's electoral system.
'We acknowledge that our elections were not perfect and had lapses and shortcomings. However, we have well established legal avenues of redress and I urge anyone aggrieved to pursue them,' Yar'Adua said to applause.
'I also believe that out experiences represent an opportunity to learn from our mistakes. Accordingly, I will set up a panel to examine the entire electoral process with a view to effect reforms and ensuring that we raise the quality and standards of our general elections to meet international standards.'
Earlier in the day, soldiers and police set up roadblocks and patrolled streets in volatile districts of Nigeria's biggest city, Lagos, saying opposition leaders would not be allowed to hold a planned protest of the inauguration.
But hundreds of protesters still gathered near the headquarters of the Nigeria Labor Congress as labor and democracy activists denounced the inauguration. Riot police cordoned off the area and would not let the protesters into adjoining streets.
Obasanjo's 1999 election ended decades of near-constant military rule in Africa's most populous nation, including a particularly brutal 15-year phase that began in 1984.
Yar'Adua said his assumption of power after eight years under Obasanjo was an 'historic milestone' for this restive nation of 250 ethnic groups and 140 million people, almost equally split between northern-based Muslims and southern Christians.
'We have at last managed an orderly transition from one elected government to another,' he said. All other attempts since 1960 independence from Britain were undermined by coups d'etat or annulments of election results.
Even though the end of military rule unleashed long-simmering conflict that has killed some 15,000 Nigerians in political violence, Nigerians are more unified, Yar'Adua said.
Under civilian rule, Nigerians say they have gained freedoms and their country has shaken its reputation as an international pariah run by generals bent on looting the public coffers.
Obasanjo also cleared the country's books of billions of dollars of debt racked up by military rulers and helped end at least two of West Africa's civil wars by sending troops to intervene.
But many Nigerians say graft continued to flourish under Obasanjo and services like electricity and water supply worsened. The vast majority of the country's people live in poverty, while a largely corrupt political and business elite has grown.
Yar'Adua promised to build roads and power plants, fight corruption, create jobs and keep inflation and interest rates low to attract foreign investment.
'Let us now join together to build a society worthy of our children,' he said.
By EDWARD HARRIS
Associated Press Writer
exceo: Sure. Just Tell Your Bank You're Waiting On A Big Check From Nigeria. They'll bend over backwards to loan as much cash as you need.
So far this morning the elephant seems to be snoozing quite comfortably, (or should I say quite comatose?).
exceo: Hey It's Legit. All Ya Gotta Do Is Pay A 10% Tax On The 4 M And Wait By The Mail Box For Your Winnings.
And Wait, And Wait, And Wait....
kownski; That's Easy, Nothing Happened.
Paris Club pardons substantial amount of Sao Tome and Principe’s debt [ 2007-05-25 ]
Paris, France, 25 May – The Paris Club, a body that brings together 19 creditor countries, Thursday decided to write off a substantial part of the debt owed by Sao Tome and Principe, valued at a total of US$24.5 million, the organization said in a statement.
In a statement issued in the French capital, the Paris Club said that creditors had decided to pardon US$23.9 million of Sao Tome’s debt, leaving it with an outstanding balance of US$600,000.
The Club said that creditors have also pledged to provide additional relief for the debt to be totally pardoned.
The members of the Paris Club applauded the determination of the country in “applying a global strategy for reducing poverty,” and to put into place an economic program favoring growth.
The deputy prime minister and minister of planning of Sao Tome and Principe, Maria Torres, present at the Paris Club meeting, pledged to use the debt relief to reduce poverty in her country.
According to the statement, Sao Tome and Principe's total foreign debt is valued at US$294 million.
Germany, Belgium, Spain, France and Russia were the members of the Paris Club that took part in the debt relief meeting and Canada, the United States, Italy and Japan took part in the meeting as observers. (macauhub)
Nigeria's powerful oil unions began a strike Thursday at its state-owned oil company and threatened to target exports in hopes of reversing the sale of government refineries.
Both the blue-collar and white-collar unions said members working for the Nigerian National Petroleum Corp. and the petroleum ministry have walked off the job indefinitely.
The state oil company holds the majority stake in joint ventures with international oil companies that accounts for more than 90 percent of the country's oil exports.
The unions allege outgoing President Olusegun Obasanjo's government has sold state-owned refineries without taking the welfare of workers into consideration. The government denies the accusation.
'Our strike has begun and we won't rule out shutting exports,' said Peter Akpatason, the leader of one of the two unions, which claim tens of thousands of members.
His white-collar counterpart, Peter Esele, said the two unions shared the same stand on the strike.
The candidate representing Obasanjo's ruling party in deeply flawed elections, Umaru Yar'Adua, will take over. The opposition says the elections were rigged and international observers say they were not credible.
Obasanjo will step down as president May 29 after serving two four-year terms.
Although the unions have the potential to hurt exports, previous work stoppages in recent years did not last long enough to affect oil exports.
But their threats add to concerns about Nigeria's oil exports of 3 million barrels a day already cut by a quarter because of attacks by armed militants in the increasingly lawless southern oil region.
Nigeria is Africa's leading oil exporter and the fifth-biggest source of U.S. oil imports.
Copyright © 2007, The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Copyright © 2007, InterestAlert
Germany interested in cooperating with Sao Tome and Principe in the oil sector [ 2007-05-21 ]
Sao Tome, Sao Tome and Principe, 21 May – Germany is interested in cooperating with Sao Tome and Principe in the oil sector, the German secretary of state for employment and social security, Wolfgang Jonhan said in the capital of Sao Tome Sunday.
Jonhan began an official visit to the archipelago Friday at the invitation of the Sao Tome authorities and said the German authorities were interested in boosting bilateral cooperation in the Work, Employment and Social Security sectors.
As well as meeting with the Sao Tome minister of Work and Employment, Maria de Cristo, Jonhan also met with several members of Sao Tome and Principe’s authorities.
This visit follows another similar one led by the Sao tome deputy prime minister, Maria Tebus Torres, to Berlin accompanied by several officials including the Natural Resources minister, Manuel Deus Lima, who is responsible for the oil sector.
As well as being involved in Education by giving student grants, the German authorities (former East Germany) supported Sao Tome and Principe in other areas, particularly construction, in which it built the only beer factory on the archipelago. (macauhub)
Nigeria Overtakes Saudi Arabia in Crude Supply to US
By Chika Amanze-Nwachuku, 05.22.2007
Nigeria has overtaken Saudi Arabia in the ranking of crude oil exporters to the United States, a preliminary data from the US Energy Information Administration (EIA) has shown.
According to the EIA data on the US crude import rankings in March 2007, Nigeria, Africa's biggest oil producer and the world's eighth, leaped from fifth place in February to third in March, pushing Saudi Arabia, the world's top exporter into fourth place. Canada and Mexico held on to first and second places, with crude exports to the US of 1.776 million barrels per day (b/d), down 64,000 b/d from February, and 1.621 million b/d -- 263,000 b/d up from February.
But Saudi Arabia, with an average 1.231 million b/d in March, found itself behind Nigeria with 1.29 million b/d. US crude imports from the kingdom had dipped by 374,000 b/d in February to average 1.185 million b/d over that month, recovering by just 46,000 b/d in March. Volumes from Nigeria were up 229,000 b/d from February's 1.061 million b/d.
Venezuela took fifth place with 1.036 million b/d, down from February's 1.115 million b/d.
The EIA data also showed the remaining countries on the list of top ten crude exporters to the US all supplied volumes well below the million b/d level. In sixth place was Angola with 696,000 b/d, up from 451,000 b/d in February.
Iraq took seventh place, boosting crude exports to the US to 523,000 b/d from 325,000 b/d in February.
Algeria was in eighth place, boosting volumes to 501,000 b/d in March from 392,000 b/d the previous month. Kuwait and Brazil took ninth and tenth place respectively, with 288,000 b/d -- up from 158,000 b/d-- and 209,000 b/d -- a doubling of February's 103,000 b/d.
Oil Workers May Commence Strike Thursday
From Juliana Taiwo in Abuja, 05.19.2007
All workers of the Nigerian National Petroleum Corporation (NNPC) and its affiliates have been directed to, come to work on Monday clad in red outfits as a way of expressing their angst over the sale of the Port Harcourt and Kaduna Refineries as well as the Stallion House in Lagos.
This is a mock exercise for a full-scale strike by Thursday should the negotiation between Government and their unions fail.
This is expected to lead to the closure of petroleum products depots, which may further lead to fuel scarcity in the country.
Also, workers at the Nigerian Gas Company (NGC) will cut gas supply to strategic investments, such as gas power plants.
The National Union of Petroleum and Natural Gas Workers (NUPENG) and their senior counterpart, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) NNPC branch, revealed yesterday in Abuja that their national bodies have okayed that from next Thursday, a total strike that will paralyse key oil and gas services manned by their members should commence, in protest to a breach of agreement by the Bureau of Public Enterprises on the sale of the Port Harcourt Refinery and Kaduna refineries.
The Bureau of Public Enterprises had on Thursday sold 51 per cent Federal Government equity in the Port Harcourt Refinery to Bluestar Oil Services Limited Consortium, owned by Aliko Dangote’s Equity Energy Resources; Femi Otedola’s Zenon Oil and Transnational Corporation for $561m.
The sole bidder for Kaduna Refinery, China National Petroleum Corporation failed to match the reserve price after offering $102m.
The Group Chairman PENGASSAN, NNPC, Mr. John Elibe at a joint press briefing in Abuja said, “we will be starting full blown strike by Thursday morning. That is if nothing seemed to happen by Wednesday mid night, we would start a full-blown strike. But we would start by engaging ourselves in prayer sessions early in the morning between 8am-10am. We would wear red dresses. And if by next week Wednesday night, a meaningful round table discussion does not come from government, the two unions would go on full blown strike.”
He said that President Olusegun Obasanjo might just be handing over big troubles to a new the government, if the issues are not well tackled before May 29, 2007.
“Our unions were not opposed to privatisation”, he said. “We only resented the manner that BPE sold PHCR without the necessary due diligence”, he said.
“It was in the same manner it sold out our monumental investment in Stallion House without our consent,” he said.
According to him the unions and BPE had signed Memorandum of Understanding (MoU) part of which that BPE would finalise the labour issues that are associated with the sale of the refineries and give the unions three weeks to explain the privatisation process to their members. And that the Unions would carry out their on due diligence on the prospective buyers.
“Is it not curious that government is in such a rush to sell these refineries, even when the buyers have not carried out due diligence on them”, he asked.
“Our workers will not allow they new owners access to the refinery unless the fate of the over four thousand workers to go are known and accepted by the unions.
On his part, the Group Chairman, NUPENG, NNPC chapter, Mr. Williams Ibiba Inko said his members are worried that the Port Harcourt Refinery was sold to investors who had no credentials of refining petroleum products, and as such doubted it the sales was to actually run the refinery or kill it for a more lucrative importation racketeering. He also wondered what would become of the refineries in the event of pipeline vandalisation, which government has not been able to tackle.
“What will be the fate of such organisation, the place will be closed down for months, the staff will lose their jobs,” he said.
He added that the sale of the refineries would also lead another round disengagement of staffers of NNPC, which had already reduced its workforce from 17,000 to 9,000.
“We are going to protest this sale, by ordering our members to down tools by Thursday, should we not reach an agreement before then”, he said.
He said the sale of Stallion House, which is owned 49% by NNPC staff, has led to a loss of N220 million in revenue to their Pension Scheme, a situation which he says is already a big burden to them.
Shell Resumes 170,000bpd Production in Niger Delta
By Fidelia Okwuonu with agency report, 05.19.2007
Royal Dutch Shell yesterday resumed operations in the Niger Delta to restore 170,000 barrels per day (bpd) of crude oil production after a protest at its major pipeline hub.
According to Shell’s spokesman, the company has regained access to its Ogoni site, after the six-day protest in the Ogoni area of the Niger Delta, which had raised the tally of oil supply cut by violence to about 900,000 bpd, or one third of total capacity in the country. Nigeria is the world's eighth largest exporter. The crisis in the Niger Delta had led to world oil price increase.
The Dutch oil giant had halted oil production in the Ogoni area 14 years ago as a result of popular protests, which were a precursor to today's violent insurgency in the Niger Delta.
The spokesperson added that the Anglo-Dutch company has already reopened one of the valves at the pipeline complex in the area, and would test the system before fully restoring oil flows. Villagers from K-Dere community had staged a protest to demand a stake in the oil flowing through their land, but vacated the site on Wednesday after their elders promised to settle the issue in talks with Shell over the next few days.
Meanwhile, US major Chevron also disclosed yesterday that only about 7,000 bpd of its Escravos oil production was still closed after a community invasion at its Abiteye facility on May 7, causing a disruption on its 70,000 bpd production prior to its original estimate of 42,000 bpd.
According to a report, rebels fighting for local control over oil wealth have stepped up attacks to press their demands, but the line between militancy and crime are blurred and frequent kidnappings are mostly motivated by money.
Twelve foreigners are still being held hostage there after a Belarussian woman working as an industry contractor, who was abducted on May 5 in Port Harcourt was released on Wednesday night.
O.T. African Madness… Coming Soon to a Gas Pump Near You
Last year marked the first time ever that U.S. imports of African crude oil surpassed shipments of oil from the Middle East. The trend is continuing in 2007; so far, three African countries (Nigeria, Angola, Algeria) account for 26% of crude oil imports, while three Middle Eastern countries (Saudi Arabia, Iraq, Kuwait) account for just 23%.
Our drift toward dependence on African oil goes hand in hand with dwindling production in Mexico, the U.S.’ number-two foreign source… and with the continuing ugly business in Iraq, where oil production is still off about 27% from its pre-war high.
Of course, perpetually troubled as the Middle East is, Africa is no shirker in the chaos derby. That it is now a leading source of oil imports for the U.S. has far-ranging implications, above and beyond providing regular content for the nightly mayhem shows… I mean, news.
On that front, you may have noted—but probably only in passing—just a few of the back-page items related to Africa over the past few weeks. For instance…
Nigeria is in the process of transferring power through a “democratic” election. While CNN et al. relate the tales of murder and corruption that customarily accompany third-world voting, when push comes to shove, all most of their viewers care about is cheap fuel. In the case of Nigeria, the key to reliable production now lies in the ability of the newly elected president, Umaru Yar’Adua, to gain sufficient political control to strong-arm his militant opponents.
Unfortunately, while the prospects for law and order in Nigeria are dim, the prospects for just plain order aren’t much brighter. So it’s no wonder that oil prices jumped on the news of the election outcome; a bookie’s odds, if you will, on the likelihood of a coup or widespread unrest in the foreseeable future—either of which would bring work stoppages and sabotage. And, because as goes the fate of Nigeria, at 2.1 million barrels a day Africa’s largest oil-producing nation, so goes the cost of your daily commute.
Elsewhere in Africa, we recently learned that the Ogaden National Liberation Front (OGNF) attacked a Chinese-operated oil field in Ethiopia, leaving 74 dead and taking as many as 5 Chinese hostages. The OGNF is a separatist rebel movement operating along the border of Ethiopia and Somalia. Although a representative of the group claimed the Chinese dead had been “caught in the crossfire,” the fact that guns were ablazing in the oil field—not to mention the hostage taking—casts those claims in a suspicious light.
And in Algeria, the group formerly known as the Salafist Group for Preaching and Combat (they like to do both at the same time), now renamed as the more serious sounding “al-Qaeda in the Maghreb,” recently set off a couple of bombs, killing 17 people who may have been expecting a gentler sermon. The bombs suggest a return to the bad old days in Algeria and a decided acceleration in violence aimed at anyone the Islamists find offensive by their rather strict religious standards. Invariably, the targets include all infidel dogs… aka foreign oil executives and workers.
Regardless, now that Africa’s importance to meeting U.S. energy needs has risen to lofty levels, strife on that perennially troubled continent will continue to trigger spikes in crude oil prices and, between spikes, to keep a floor under the price.
With the busy summer driving season looming and U.S. gasoline supplies dropping for 12 straight weeks (see chart below), more of the same turmoil—a certainty when it comes to Africa—will likely lead to much higher gasoline prices coming to a pump near you soon. In fact, talk on the street is now for consumers to pay over $3.50 a gallon – and maybe as high as $4.00 -- once the summer driving season kicks in.
And, that, of course, adds further pressure on a U.S. economy being squeezed by the deflating housing bubble. The good news, of course, is that it also provides a steady wind to the sails of our favorite energy companies.
Not to appear callous, but just because the U.S. economy is leaking and may be headed under water, doesn’t mean that we as individuals have to go down with the ship.
Doug Casey
Casey Research
Uruguay, May 2007
Angola’s Sonangol to support oil exploration in Sao Tome and Principe [ 2007-05-16 ]
Luanda, Angola, 16 March – Angolan state oil company Sonangol plans to increase its support for surveying, production, refining and transport of oil in Sao Tome and Principe, the president of Sonangol, Manuel Vicente said Monday in Luanda.
Sonangol is currently involved in the distribution of fuel in Sao Tome and Principe through local company ENCO, in which the Angolan company has a 40 percent stake.
According to Jornal de Angola, the increased cooperation was mentioned by Vicente to the Sao Tome Natural Resources and Environment Minister, Manuel Lima.
During the meeting, the two discussed the possibility of a new plan to re-launch the cooperation between the Angolan fuel concession-holder and Petrogás, Sao Tome’s state oil company.
Vicente said that Sonangol would provide all the necessary support to Petrogás, with the aim of making the Sao Tome company a benchmark of the world oil industry.
Sao Tome and Principe has a joint exploration area with Nigeria, where four oil bloc concessions have been granted to international companies.
The archipelago’s largest consumer of fuel is the country’s water and electricity company, which produces 80 percent of its power using fossil fuels. (macauhub)
Sao Tome and Principe invites Angola to help draw up prospecting policy [ 2007-05-15 ]
Luanda, Angola, 15 May – Sao Tome and Principe has invited Angola to be a strategic partner in drawing up its oil prospecting and exploration policy, the Sao tome minister of Natural Resources and the Environment said in Luanda Monday.
Manuel de Deus Lima, who was received by Angola’s oil minister, Desidério Costa, told journalists that, “Angola, because has been an oil producer for many years, has vast experience,” and Sao Tome hopes to “count on an work with” this to move into “this process with some know how.”
The minister, according to Angolan news agency Angop, said that Angola’s experience was fundamental for Sao Tome to take greatest advantage of agreements to be established with international companies interested in Sao Tome’s oil.
According to Deus Lima, the training component is another area in which Sao Tome has asked Luanda for help, adding that nine Sao tome citizens were already being trained in Angola.
As well as the meeting with Desidério Costa, the Minister of Natural Resources met with the chairman of oil company Sonangol, Manuel Vicente, to draw up a new cooperation plan with Sao tome's Petrogas.
The relationship between the two countries goes back to their independence from Portugal in 1975, and Sonangol currently has investments in Sao Tome, mainly in fuel distribution.
Deus Lima, who has been in Luanda since Friday for a week-long visit and Tuesday was due to visit the Fpso Girassol, the survey and production ship that recently went into operation. (macauhub)
Violence in Nigeria stokes oil prices
OIL prices rose yesterday after the armed seizure of four American workers and bombing of oil pipelines by militants in Nigeria raised more concern about escalating violence in the petroleum-producing region.
An upcoming U.S. inventories report, meanwhile, was expected to show a rebound in gasoline stocks for the first time in three months.
Light, sweet crude for June delivery rose 12 cents to $62.38 a barrel in electronic trading on the New York Mercantile Exchange by afternoon in Europe. June Brent crude was up 45 cents at $65.99 a barrel on London's ICE Futures exchange.
Prices had gone up on Tuesday after the U.S. government said the price of gasoline was expected to rise this summer due to ongoing problems at the nation's refineries.
Increased violence in Nigeria's oil region also heightened supply worries in the energy market and lifted prices.
The attackers, carrying assault rifles and rocket-propelled grenades stormed a vessel carrying the workers in the southern Niger Delta minutes before midnight on Tuesday, two industry officials told The Associated Press.
The latest kidnappings, following dozens last week came just hours after militants staged co-ordinated attacks on three pipelines in the wetlands region, knocking out tens of thousands of barrels of crude oil and keeping global supply fears alive.
Nigeria is Africa's largest producer of crude, one of the top 10 exporters in the world and a leading supplier of oil for the United States.
Some were hopeful that the violence would not persist.
"I believe the rising spate of attacks is a short-term pre-inauguration thing," said Eurasia Group analyst Sebastian Spio-Garbrah, "but after May 29 all the positive political catalysts for Niger Delta stability are there."
Traders were also awaiting the weekly U.S. Energy Department report on gasoline inventories, due later yesterday. Analysts surveyed by Dow Jones Newswires expected the report to show gasoline stocks rose 370,000 barrels last week, on average. It would be the first increase in gasoline stocks in 13 consecutive weeks.
Unplanned outages and scheduled maintenance at refineries, sluggish imports and strong demand have plagued gasoline supplies. There have been at least a dozen additional partial shutdowns in the U.S. and internationally that cut refining capacity.
Heating oil futures on the Nymex were up 1.3 cents at $1.8429 a gallon, and natural gas prices slipped 2.5 cents to $7.612 per 1,000 cubic feet.
Nigerian Protesters Occupy Chevron Site
By KATHARINE HOURELD
Associated Press Writer
Protesters armed with machetes occupied a Chevron oil installation in southern Nigeria on Monday, forcing a shutdown of the facility, officials said.
Chevron Corp. spokesman Femi Odumabo said the Ebite flow station pumps 42,000 barrels a day in the west of the oil-rich Niger Delta region.
No one was injured during the seizure and there was no damage to the flow station, Odumabo said. He said the intruders were still occupying the site, but he declined to discuss the demands or numbers of the protesters, who included residents of the area.
A private security contractor who was not authorized to speak to reporters said dozens of protesters were armed with machetes but there were no firearms visible.
Community protests are common in the Niger Delta, where people are deeply poor despite the region's output of billions of dollars in oil every year.
Corrupt government officials often steal money intended for social projects such as roads or clinics, and oil companies have been forced to become service providers to continue operating without disruption.
Disputes also often occur over compensation paid to villagers whose fishing or farming grounds have been polluted by oil spills. Oil companies claim many spills are the result of thieves illegally tapping into pipelines to siphon off crude oil to sell.
Nigeria is Africa's largest oil exporter and is the fifth largest supplier of crude to the United States.
Copyright © 2007, The Associated Press