JDZ Nigeria-Sao Tome e Principe

[instructmba]

Portuguesse to English translation of and older article that I thought would be an interesting read for all of you:

Sinking its hopes in a small Nation One firms petroliferous obscure of Texas, with allegations of corruption, it assures a business with the poor nation of Are Tomé and Princípe. 24 of May of 2003 For Ken Silverstein, Teamses Writer Staff HOUSTON - The ERHC (Environmental Remediation Corp Holding.) it has a permanent employee in its headquarters. The company did not declare no profit in last the four years and accumulated losses in the sum of 30 million dollar. The quotation of its shares patrol the 17 we céntimos of the dollar for share. Still thus favours to its only asset - a contract that guarantees a good slice to it in the petroliferous wells of the small nation of Africa of the West - the obscure petroliferous firm of Texas seems to be to the side of a spectacular overturn. The ERHC guaranteed its rights on the oil of Is Tomé and Príncipe, an island so empobrecida nation that it needs suplemental its master budget emitting commemorative stamps of the Marilyn Monroe, the Beatles and other celebrities. The petroliferous contract of the company, which was concluded in the passed month, gives to it right to the two blocks offshore in territorial waters of Is Tomé and a significant quota of deposits in the controlled joint zone for Is Tomé and for the Nigéria. It is calculated that about 4 a thousand million barrels of crude they exist in the deepenings of those maritime waters. Without no perforating one under its name, the ERHC could collect millions of dollar of its interests. The company still did not disclose its plans but, the analysts foresee that it will finish for vender its interests to one of the giants of the petroliferous industry. What she has frightened the understood ones in the substance is as a small speculator of the sector of the energy could obtain fellow creature business, thus leaving the suspicion of that the company left to earn with the lack of experience of the country in petroliferous business-oriented terms. Bill Brumbaugh, a consultant of energy of Houston that assisted Is Tomé no contract with the ERHC, says that the business is of such dimension that no could take "the deep damages future national treasure of Is Tomé". This contract has infuriated some internal groups of the opposition, which accuse the Government with corruption acts. In the last month, the President of Is Tomé, Fradique Flag Melo de Menezes, admitted that she private received the sum from 100 a thousand dollar of the president of the ERHC. Of Menezes he insisted that one was about a financial contribution for its campaign. The employees of the ERHC contradict to have corrupted the president. They recognize to have profit favorable simpatias in the country but they do not present any explanation for such. They say that so far already they had expended the sum of 12 million dollar in this process with Are Tomé, about half of this in payments to the national treasure and the remaining portion to create a map of waters offshore of the country and, also, to prepare the way for the exploration on the part of the firms energy multinationals. The initial agreement between the company and Is Tomé was signed in 1997. Since then, the same already it was renegotiated more two times, and successive governments had threatened to put ending to the agreement. Still thus, in the passed month, the company appeared still more with generous terms that, some time, already were seen to offer a foreign petroliferous firm. Between the benefited ones Nigerian is a man business-oriented, which is owner of about half of the shares of the company and, a half dozen of men of the oil of Texas. "the ERHC is in an excellent position (is in catbird seat)" says Phil Nugent, a consultant of Houston in oil and gas that possesss many shares of the company. "We go to obtain our portion and I find that we deserve it." The race for the oil of Africa of the West The negotiations of the ERHC with Are Tomé reflectem the race for the petroliferous wealth in Africa of the West. The region supplies 15% of American petroliferous importations e, foresees that this number comes to increase inside for 25% of one decade since the Government of the United States intends to reduce its dependence of the energy of the Average East. The great petroliferous producers as the Nigéria and Angola have lawyers and other pictures highly trained in energy questions and that they can negotiate in equality of circumstances with great the company petroliferous. But the just fond ones and with proven reserves, as it is the case of Are Tomé, frequent do not finish for appealing the small European firms or American, which leads or arranges given geologic, they help to create legislation for petroliferous great foreign investment and try to attract the company to develop reserves. The consultoria firm finishes for charging an addition fixed or, in alternative, it obtains to get profits vendendo its great geologic data petroliferous ace company. The ERHC, for the the opposite, made an appositive one in the petroliferous reserves of Is Tome, including a quota of 14% in most promising. If the reserves of the country were not so great how much if it thinks to be, or if they could not be explored, the company would not leave to lose due to irrisória addition that it invested. On the other hand, if the petroliferous potential of Is Tomé was confirmed, the company would leave to earn in measured wide. Andrew Latham, a connoisseur of the Wood Mackenzie for Africa of the West, a firm of consultadoria in Edinburgh, Escócia, says that the agreement Is Tomé-ERHC is for beyond the limits of the standard one of the industry (petroliferous). "It has immense examples of small firms that arrive early and help to promote the exploration petroliferous of the country. Its profits are relatively small "say Latham. "I never vi a company to get fellow creature suspicious transaction as the one that the ERHC obtained of Are Tomé." The nation smallest of Africa, Is Tomé is composed of two islands with a territory in the total of 372 square shaped miles - about of one terço of the size of the state of Rhode Island - and a population of 170.000. The country is touched by the equator and is located the west of Gabon in the Gulf of the Guiné. They are Tomé got the its independence of Portugal in 1975 e, contrariamente á bigger part of the African nations, is a country of parliamentary democracy with an insignificant history of military envolvement in its life politics. The per capita income is mere 300 dollars and, They are Tomé imports combustible as well as most of good and food. The main product of exportation of Is Tomé is the cacao. For beyond the commemorative stamps, the country increases its incomes with the industry of services of flag of convenience for merchant navy and leasing its telefónicas lines so that the pornography operators can direct called sexual nature, one practical very common one in the third world since the developed countries had finished with the businesses of "telesexo" has one decade behind. "the country has a national hymn and a flag but, only exists as an independent state favours to the foreign financial support," says Gehard Seibert, writer of the history of Is Tomé. Taiwan, being the biggest particular giver, was committed in contributing with 30 million dollar in 1997, if its relations with continental China Are Tomé offered to recognition diplomatist to the island republic thus azedando. First Contract in 1997 The interest of the ERHC in the sãotomense oil was born of a colloquy behind has 6 years between Noreen Wilson, an expert of lobbies of Washington and an employee of Procura Financial Consultants, an African south firm of petroliferous consultants. The employee of the company mentioned that Procura walked to explore chances in Is Tome and looked an American partner. James Griffin, the cousin of Mrs. Wilson, was to the front of the destinations of the ERHC. The company established in 1986 was involved in the treatment and cleanness of lixos and residues of the industria of the oil. Possuía 25 used in regimen of full teams, including engineers of the petroliferous area and 2 geologists. Of between its contracts it had one with the Chevron to treat 400 wells in the Louisiana. Mrs. Wilson said to have persuaded the executive head of the company - in the height Sam Bass Jr, that vendeu equipment of perforation of wells of oil to the Nigéria and after extinguished fogos of the wells of oil of Iraq the Persian Gulf war - to give attention Is Tome. In the beginning of the year of 1997, Mrs. Wilson, Griffin and some employees of Procura had travelled for the islands with the intention of speaking with members of the government. In a short space of time they sign an agreement. The ERHC paid 5 million dollar to the government for the right to commercialize the petroliferous potential of the country. The ERHC, that later bought the rights of Procura, gained a minimum of 4 blocks and was exempt of the payment of all the taxes. The agreement also created a petroliferous company of the sõotomense state, the STPetro. The ERHC and the government foresaw to divide the future profits of the STPetro. Mrs. Wilson nominated the president of the STPetro and the responsible financier of the ERHC. "the agreement will have been valuable", Mrs. Wilson questions. perhaps "Yes, it had been but who more in that height would accept to run the risk? They could not lie down the oil are much less obtained to arrange somebody to pay for exactly." Mrs. Wilson said that already she did not withhold an official position in the ERHC but that she possesss millions of shares of the company. Brumbaugh, that later advised Is Tomé in the aspect related with the form as it would have to improve the agreement, said that the ERHC was used to advantage of the inexperiência of the country. "the business fields were different, being that thus, when the ERHC asked for the Moon, they had obtained soon". In accordance with employee of the corporative company and registers, Carlos Gomes, negotiator of top that represented Is Tomé, anxiously it was stimulated with an executive position in the new firm of the state (STPetro) and a wage of 4.000 dollars monthly paid for the ERHC. In accordance with Mrs. Wilson and Jim Callender, one old executive of the company, the ERHC also provided a scholarship in Lafayette, in the University of Louisiana, for the son of Carlos Gomes. The children of others two sãotomenses well-connected also had received scholarships of the ERHC, guarantee. "he was not very difficult to place us of the certain side of the governmental decisores key", says Gregory Craig, a prominent lawyer of Washington that served, for a period very soon, as council member of Is Tomé. Carlos Gomes defended the agreement. "In the height, nobody expressed any interest in exploring oil in Is Tomé", said in an interview in London this year. "we did not have none other offers to choose". Carlos Gomes did not answer to e-mails that its concerning the benefits requested commentaries that received from the ERHC. Renegotiated agreements The ERHC paid to a geógrafo that drew the letter of sãotomenses territorial waters and the lawyers to effect the deposit of the report of landmark (of borders) in the Joined Nations. The ERHC helped to decide territorial disputes with the neighboring nations, paying legal taxes of the government, expenditures of trips for sãotomenses leaders and other costs. The company also called the attention the industry of the oil for the reserves of the country. The ERHC early entered in financial sideslip. It abandoned the great majority of its activities of treatment and cleanness of residues to focus itself in Is Tome, what still it did not have proportionate any prescription to it. The uneasier investors were each time because Deep the Monetary International encouraged Is Tomé to renegotiate the agreement with the ERHC, which, said, were excessively generous for the company. In 1999, Bass vendeu its position of control in the ERHC for Geoffrey Tirman of the Capital Talisman, a small firm of investments that was a significant investor in the ERHC. At the time, They are Tomé complained that the ERHC was not to make the sufficient to develop its industry of oil. Tirman travelled for Is Tome in the Autumn of 1999 to decide the things, but the conversations with the government of president Miguel Thunderstorm fast azedaram. When abandoning the country, Tirman gave a press conference and accused the government to accept bribes. The government denied such allegation and accused Tirman with insubordination. After de Tirman to have itself forgiven, the question was abandoned. But They are Tomé announced that already it would not go to honor the contract. Tirman appealed the arbitration. Then, in 2001, Tirman vendeu (its participation in the ERHC) for Emeka Offor (it saw Chrome Oil), a man business-oriented Nigerian. In this height the ERHC was little more than nothing. Offor, a friend and 0ccasional partner of Nugent, shareholder of the ERHC, possesss an airline of load transport, a bank, a relief periodical and interests in the telecommunications. Responsible president of the company was nominated but she kept its headquarters in Houston. In reply the complaints on the part of Are Tome, Offor renegotiated the contract of May of 2001 efectuado in the administration Thunderstorm. Under the cover of the new agreement, the ERHC renounces the certain rights, mainly to its quota in the company of the state (STPetro). On the other hand, it guaranteed for beyond other benefits, a part in the future profits of the oil and keeps its rights of choice of blocks. Two months later, Fradique de Menezes was elect president of the republic and, after taking ownership in September of 2001, it swore to revoke the agreement. The ERHC threatened with a legal share but it finishes for agreeing to one another renegotiation that had beginning in the threshold of this year. In this height, They are Tomé was desirous to sign an agreement so that the exploration had beginning, said Brumbaugh, the petroliferous consultant. "They saw the Nigéria, the Equatorial Guiné, Angola and other countries to get repayments of the exploration of the oil, while they (STP) if were to bog in moving sands". The negotiator who represented the country was White Rafael, minister of natural resources. White Rafael is cited by Mrs. Wilson and Callender, old employees of the company, as having two children between whom they had received university scholarships from the ERHC. The National Commission of the Oil of Is Tomé had an advisory paper. One of its members was shareholder of the ERHC and old consultant of the company. Two other members of the commission consisted of the list of payments of the petroliferous company of the state (STPetro). The same it happened with two members of another governmental structure of fiscalization of the petroliferous exploration in the Zone of Joint Development with the Nigéria. White Rafael did not answer to the invitation to comment. The contract, having been renegotiated for equips lead for White Rafael, gave to ERHC 14% of quota in nine of the promising blocks of the Joint Zone of Development. The agreement left unbroken the rights acquired for the company in sacred territorial waters of Is Tomé, where the ERHC withholds total property on two blocks and 30% of participation in others two. In the majority of the blocks where the ERHC possesss participation rights, she is exempt of the payment of "bónus of signature" - a tax to the petroliferous head that the company pays to the governments habitually to get exploration rights. In Africa Occidental person, these bónus can vary of few millions of dollar for block until the upstream o of 300 million dollar, paid amount recently for the ExxonMobil for its rights in Angola. Chude Mba, the executive head Nigerian of the ERHC and main negotiator said that it agreed to the order of the sãotomense head - that the company resigned to be in the ownership of the future profits of the oil that the sãotomense government came to get. On the other hand the ERHC asked for and received a bigger amount from participativos interests in the sãotomenses blocks. "They had had what they wanted and we what we desired", Mba to the telephone of London said. Noreen Wilson rejoiced of joy. "As shareholder, I am empolgadíssima", said. "All people centered in that the one that we renounce and nobody gave the due attention to the one that we receive". During a public appearance in April, White Rafael said that the agreement marked a "point of viragem" in the sãotomense historia. "the government and the people of Are Tome waited eager for dawn of one day as this", affirmed. The Agreement formal was concluded the 10 of April. In the following day, an open letter signed by sets of ten of leaders politicians and civil society, accuses Fradique de Menezes to vender the national interests. They had accused the president with in February of 2002 having received 100,000 dollars from a company with register in the Bahamas, controlled for Emeka Offor. The money alegadamente was deposited in the account of a Belgian company withheld by Fradique de Menezes. In a conference of the press the 23 of April - the day that if followed to the sending of an email for the Los Angeles Teamses the Fradique de Menezes, questioning to it concerning the related allegation - the president gave to know that she received from fact the money. He described this act as a contribution for its political party and a party ally in the legislative elections. John Coleman, the only employee of the ERHC in Houston said that the company nothing had to see with the payment. They are Tomé and the Nigéria they had announced that in October they will accept offers for the exploration of rights in nine of the petroliferous blocks that they withhold in set. The firms multinationals "go to be a refugee large-scale", foresee Nugent, shareholder of the ERHC. "the FMI and all people unloaded in the ERHC because of Are Tomé but they had forgotten that we were who we brought them for the dance", he affirmed. "In the end we will be last them to laugh".

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