ERHC Energy Inc (ERHE)

[RUBY1100]

Sao Tome & Principe law move

Lawmakers in the micro-state of Sao Tome & Principe last weekend approved legislation enabling the country to hold its first offshore licensing exercise to allocate up to six exploration blocks in its exclusive economic zone.

The 55-member parliament unanimously approved laws governing the tender process for contracts and for the eventual taxation of oil and gas revenues.

Both bills will be sent to President Fradique de Menezes before the end of the week. He will then have 30 days to publicise the new legislation but will probably do so by the end of July.

Companies seeking production sharing licences will be allowed to bid transparently and publicly directly to the country's National Petroleum Agency (ANP).

Talks may begin with a bidding company only if no other party has formally expressed an interest within a specific period.

Blocks not bid for may subsequently be subject to direct talks with interested companies, theidentities of which will be made public.

ANP aims to formally launch the round in November. ANP chief executive Luis Prazeres said domestic independents would be encouraged, while“strong interest”had already been demonstrated by international exploration companies.

The government may also retain a stake of between 10% and 15% in awarded blocks.


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Thursday, 09 July, 2009, 23:01 GMT | last updated: Thursday, 09 July, 2009, 23:01 GMT