ERHC Energy Inc (ERHE)

[oilman57]

***JMC awaits ExxonMobil on JDZ acreage***



By Bassey Udo, Energy Editor



The Joint Ministerial Council (JMC) of the Nigeria-Sao Tome and Principe Joint Development Zone (JDZ) is still awaiting ExxonMobil decision to exercise its rights in the five oil blocs put on offer in the 2004 licensing round.

The American oil firm, by virtue of its operating in the region prior to the 2001 treaty creating the JDZ, has 40 percent rights in one of the five oil blocs and 25 percent each in two others.

Last month, the JDA formally notified the company to move within 30 days to exercise its preferential rights to pave the way for the final appraisal of the bids and announcement of the result.

Following its requests for further information on the 26 bids harvested from 22 prospective investors that participated in the bids exercise, its management met two weeks ago with the JDA to resolve outstanding issues to assist its final decision.

Though a source close to the company last week expressed high optimism that the company was interested in exercising its rights, particularly in Blocs 2 and 4, he said a review of the agreements was on to report to the JDA before the April 8 deadline.

But, Thursday the JDA frowned at recent reports that the 30 days deadline had been extended, pointing out that though all relevant materials and information relating to the transaction were made available to the company on March 9, it was currently handling settlement of third party interest agreements reached with all the parties, adding that as soon as ExxonMobil exercises its options, the JMC will convene to approve the awards.

ExxonMobil is already operating in the premier oil Bloc-1 in the zone through its subsidiary, Esso Exploration and Production Nigeria-São Tomé "One" Limited, in partnership with ChevronTexaco JDZ Limited, the operator of the concession, and Dangote Energy Equity Resources (DEER) Limited, a Joint Venture between the Dangote Group of Nigeria and Energy Equity Resources AS of Norway.