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STP/EEZ News: Lawmakers pass new oil laws to open door for launch of EEZ licensing round

Sao Tome, July 3 (Lusa) – MPs in Sao Tome and Principe approved new oil legislation Friday that the islands’ government says is needed to auction oil exploration blocs in its exclusive economic zone (EEZ) later this year.

Sao Tome’s 55-seat Parliament, without debate, unanimously supported the new oil legislation, which governs the tender process for exploration contracts and taxation of hydrocarbons revenues. The bills will be sent within five working days to President Fradique de Menezes, who has 30 days to promulgate the new legislation.

The new legislation relating to oil contracts permits closed tenders in specially defined circumstances. Energy firms seeking oil exploration rights in Sao Tome’s EEZ will be allowed to bid directly to the archipelago’s oil authorities for these contracts.

Notification of such approaches, under the new law, must be made public by the government, which can only begin negotiations with the company concerned if no other party formally expresses its interest within two weeks.

Sao Tome’s National Petroleum Agency (ANP) said this week the EEZ licensing round would be launched in November, subject to approval of the new oil laws. ANP chief executive Luis Prazeres told Lusa there is already strong interest among international oil companies in bidding for EEZ production sharing contracts.