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Re: Homeport post# 116722

Wednesday, 01/30/2008 10:05:59 AM

Wednesday, January 30, 2008 10:05:59 AM

Post# of 362655
STP News: Opposition parties to stymie govt proposals to change oil laws

Lisbon, Jan. 30 (Lusa) - Sao Tome and Principe’s two biggest opposition parties, who have a combined majority in parliament, say they will block proposals by the islands’ minority government to scrap public tenders for oil exploration licenses in the in the archipelago’s territorial waters.

In a telephone interview with Lusa from Lisbon on Tuesday, Rafael Branco, leader of the main opposition MLSTP-PSD, said his party was “clearly against” plans by the government of Prime Minister Tomé Vera Cruz to change the country’s oil laws to permit direct negotiations for exploration licenses and production contracts in Sao Tome’s exclusive economic zone (EZZ).

Branco said his party, with 20 seats in Sao Tome’s 55-member legislature, would “vote against” the government proposals and “mobilize civil society” in opposition to the planned alterations to the oil legislation.

Meanwhile, ADI chief Patrice Trovoada, whose party has 11 MPs in parliament, told Lusa in a telephone interview Tuesday that his party was “minimally receptive” to the proposed oil law changes. The ADI, he added, will vote to block the controversial government plans.

“The best way to ensure transparency is through an auction. These changes completely distort the entire philosophy of the law on oil resources, which is to guarantee competition and transparency”.

Prime Minister Vera Cruz outlined the proposed oil law changes to leaders of Sao Tome’s main political forces earlier this month, arguing the modifications would speed up the process of exploration and production of petroleum resources.

Concern at the government’s controversial plans is not confined to Sao Tome’s oppositionists and a World Bank representative is due in the islands on Wednesday for talks with the islands administration on the issue.

Oil experts from Colombia University in the United States, who helped draft Sao Tome’s 2004 oil legislation, are also concerned at the lack of transparency and public accountability inherent in the planned oil law alterations.

The move to change Sao Tome's oil laws comes two months after the government sacked the board of directors of the National Oil Agency (ANP), which was dominated by members of the main opposition, without naming replacement officials.



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