Taiwan interested in Sao Tome oil exploration
Sun 9 Sep 2007, 4:51 GMT
By Ralph Jennings
TAIPEI, Sept 9 (Reuters) - Taiwan wants to get involved in oil exploration in the waters around Sao Tome & Principe but must compete with other nations when formal bids open, the tiny West African nation's foreign minister said on Sunday.
The twin-island state has become an oil exploration hotspot in the Gulf of Guinea region, which has seen a series of finds in the last decade. Industry officials have said production could start by 2010.
Minister Carlos Gustavos said Sao Tome will open cooperation bids to anyone interested at a date still to be announced once it has completed technical work and formalised its exclusive oil exploration zone.
"We need collaboration from Taiwan in the oil business, but by law we must put it to a tender," Gustavos told Reuters on the sidelines of a Taiwan-Africa Summit in Taipei. "Of course Taiwan is interested."
Taiwan is encouraging its major oil companies, such as CPC Corp Taiwan to do feasibility studies for Sao Tome's oil, foreign ministry spokesman David Wang said. "We're interested in it. We will encourage our companies to pursue it."
Sao Tome is one of Taiwan's five diplomatic allies in Africa, with the other 48 countries siding with its political arch-rival and economic powerhouse China.
Thirsty for oil and raw materials, China has poured billions into African countries blessed with mineral wealth, building on a legacy of goodwill from its support of independence movements in the 1960s and 1970s. Its trade with the continent is forecast to soar to $100 billion by 2010, from $6 billion in 2000.
China sees self-ruled Taiwan as part of its territory rather than as a separate country since the two split after civil war in 1949 and seeks to isolate Taiwan diplomatically by taking away its diplomatic allies around the world.
But Gustavos said Sao Tome has not felt any pressure from China to switch allegiance.
Taiwan now has 24 allies, mostly small impoverished nations, compared to China's approximately 170 partners. It has sought oil from its other diplomatic allies to secure resources and aims to build good ties through investment and aid.
Sunday's summit in Taipei brings together all of Taiwan's Africa allies for the first time in an effort to consolidate relations and resist China. Those countries also include Burkina Faso, Gambia, Malawi and Swaziland.
© Reuters 2007. All Rights Reserved
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