ERHC Energy Inc (ERHE)

[RUBY1100]

PLATTS NEWS ERHC

Nigeria and the Gulf of Guinea island nation of Sao Tome and Principe Wednesday signed a production-sharing contract for block 2 in the Joint Development Zone of the Gulf of Guinea.


The PSC was signed by the Joint Development Authority with Chinese refiner Sinopec along with US-based ERHC Energy, Switzerland-based Addax Petroleum and three Nigerian oil companies, Momo Petroleum, Ophir and Foby
Engineering. The signature bonus for the block was $71 million.


Winners of five blocks--2,3,4,5,6--were announced in May 2005 but the process has been plagued by allegations of corruption, political wrangling
that have delayed signing of the agreements.

The JDA Tuesday signed a PSCs for block 3 with a consortium led by US independent Anadarko Petroleum and block 4 with consortium headed by ERHC and
Addax.


Under the treaty governing the JDZ, revenue to be derived from the operation of oil blocks are to be shared on the basis of 60/40 for Nigeria and

Sao Tome and Principe, respectively. 15Mar2006/1056 am EST/1556 GMT