The last published report on STP's EEZ block 4 I could find were from March 2023. The report claims ERHC still controls EEZ block 4.The report acknowledges that ERHC lost its arbitration cases in London and Texas, but STP never forced ERHC to relinquish the block. Kosmos and Total are reported to pay ERHC for "most" of the block, but how much does ERHC now hold and how or how much was it paid?
This report helps understand the confusion regarding the development or the lack there of EEZ block 4. The ambiguity in losing the arbitration but allegedly still controlling at least part of EEZ block 4 certainly should spark speculation about the current situation. Evidently Kosmos's interest in the block is diminished. Total evidently has standing awarded by the STP, but the silence regarding ERHC's position is interesting to say the least; especially in view of the findings in EEZ block 6.
I welcome any updated information anyone can post.
Good luck, Farrell
Sao Tome and Principe
Block 4, eyed by TotalEnergies and Kosmos, still held by US junior ERHC
Published on 15.03.2023 at 04:40 GMT
The Sao Tomé & Principe government formed last November by Prime Minister Patrice Trovoada is looking for a solution to the problem posed by Block 4. Positive results from drilling by Shell and Galp on Block 6 further south last August in turn sparked enthusiasm for Block 4, which is being eyed by TotalEnergies and Kosmos Energy (AI, 09/09/22).
The US junior ERHC, the block's operator, owes significant tax arrears to the state, but the Agência Nacional do Petróleo de São Tomé e Príncipe (ANP-STP) has not decided to withdraw the licence despite having formally notified the firm of its delay. Several arbitrations have been made in the case in favour of Kosmos and TotalEnergies, which had both successively made a deal to purchase most of the ERHC shares on Block 4.
Shell is expected to decide shortly whether to re-drill Block 6 to ascertain its potential. Failure to do so would be bad news for the entire offshore basin where, to date, no commercial discovery has been made. A joint development zone with Nigeria has also not brought any hope, despite interest from TotalEnergies and Chevron.
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