ERHC Energy Inc (ERHE)

[RUBY1100]

UPSTEAM

JDZ awards delayed

By Barry Morgan


Suitors hoping for decisions this week as promised on final awards for deepwater blocks in the Gulf of Guinea's joint development zone (JDZ) managed by Nigeria and Sao Tome and Principe may have to wait a little longer.

Nigerian minister of state for petroleum resources had indicated that he hoped production sharing contracts for blocks two through six might be signed on 14 March, but so far only one looks set to go.

Anadarko-operated block 3 has been finalised for tomorrow's signature, according to sources in Abuja.

Houston-based ERHC Energy enjoys a junior preferential stake in this block with Norwegian-Nigerian indie Energy Equity Resources. Equity also has a small stake in block 1 with fellow Nigerian indie Afren.

Also tipped to go tomorrow is JDZ block 4, which has been assigned to Addax and ERHC. Negotiations over block 4 stalled once more following continuing discord over Nigerian indie Conoil's persistent unwillingness to ink a deal that fails to address its equity demands in the block.

It is unlikely that Conoil's refusal to sign would forge a re-bid since the JDZ second licencing round is about to expire.


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13 March 2006 20:47 GMT | last updated: 13 March 2006 20:47 GMT