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Sao Tome and Principe to produce 30,000 barrels of oil per day in 2013, IMF says [ 2006-10-12 ]


Washington, USA, 12 Oct – Sao Tome and Principe is expected to produce 30,000 barrels of oil per day in 2013, which will provide the country with US$92 million per year, the International Monetary Fund (IMF) said adding that this was a conservative estimate.

In a study of the Sao Tome economy published Wednesday, the IMF said that the oil production estimate was based on the conservative forecast that just two of the six blocs located in the joint development area (with Nigeria) will be commercially viable.

The projection is based on oil prices of US$30 a barrel, which many analysts see as very unlikely as oil is currently being sold at US$60.

The IMF said that if Sao Tome and Principe’s share of the joint area with Nigeria rose to 80,000 barrels per day revenues would triple.

In the study the IMF said that one of the challenges that Sao Tome and Principe is facing is “the need to administrate a potentially large oil income with weak institutional and absorption capabilities.”

According to the IMF “in the short and medium term one of the main tasks will be to develop institutions to ensure effective, transparent and responsible administration for oil income.” (macauhub)