Here is a great post from Musing's from RB. It explains in latter paragraphs ERHC's earlier involvement in Sao Tome and how ERHC was of benefit to them. Hopefully this side of the story gets more attention going forward.
"RE national interests and stockholder rights. Couldn't disagree with you more, not in your supposition that what matters to any government are national, and perhaps political, interests but what is implicit in your comment that somehow national interests and stockholder rights are seperate and distinct choices. Any legal action by ERHE, and it would not be the world court because the parties have already agreed that it would be the law of Wales that would determine any dispute, would create chaos for STP and the JDZ. All companies would be on notice of any law suit brought by ERHE and companies who exploited blocks or portions of blocks that lawfully should have gone to ERHE, by virtue of their preferential rights, would be third party beneficiaries of a breach of treaty. This would mean, if ERHE were to establish its rights, that third party profits of the competitors who benefited by the violation or ERHC's rights could be attached by ERHE. And these third party companies could not, in their own countries, claim lack of jurisdiction. Companies wouldn't go near a project with this economic dark cloud hanging over their heads, not with an oversized barge pole. Moreover, the STP would have another major problem on its hands with Nigeria, unless Nigeria took the same view adopted by the STP of its own national interests, frankly an unlikely event. The ironic truth of the matter is that in many ways the interests of shareholders and citizens of both STP and Nigeria are intertwined.
As to the notion that ERHE got an unconsciounably good deal with the STP, and I know that this is not your point petemantx, it is so easy to be revisionist when looking at a deal done well in the past. Remember, at that time no other companies were willing to offer more than ERHC did, and most other companies were not interested in the slightest in any oil project in STP waters. There was no anticipation that oil would be trading where it is today, the project involved very, very deep waters, the technology wasn't what it is today, Nigeria was claiming the waters as their own, the STP had zero infrastructure, and there was political instability in both the STP and Nigeria. Generally, I'm certain you get the drift, the situation was very, very messy. Its politically expedient today to say that ERHE's predecessor, which incidentally Offer had no interest in and in whose activities he did not participate, took advantage of the STP but that view fails completely to account for the realities of STP's situation, in particular the complete lack of appetite of other oil companies for this seemingly very difficult project. As exploitive as ERHC is alleged to have been, the stark reality is that it offered the STP the best deal it could get, and this was after the STP beat the bushes of the market place for years. And at that time production was certainly no slam dunk. The truth of the matter is the ERHC invested millions of dollars in what other companies regarded to be an imprudent flyer of an investment. Remember as well that there already has been international arbitration, which ERHC won and that despite this on two occassions ERHC renegotiated the treaty so that it was more favourable to the JDA and the STP with respect to the EEZ. Remember as well, that insofar as ERHE's preferential rights are concerned, the Parliament of the STP has confirmed those rights and they have been validated by the JDZ authority.
What a mess the STP would have on its hands if it denied ERHE its preferential rights! That would not be in its national interests (or the interests of we shareholders). As to the bidding rights, well that will go to the company or companies who made the best bids. It is a matter of judgement which are the best bids but there is good reason to believe that ERHC's joint bids with Pioneer and Devon are as good if not better than any of the other bids in Blocks 2, 3 & 4. I don't think either the STP or the Nigerians will cut off their noses to spite their faces in reviewing the bids. They will be hard headed and bottom line oriented.
Offer was truly brilliant in bringing along the U.S. multinationals into a joint venture, not only because these companies are talented, have the necessary equipment, human resources and experience to be successful but because the involvement of these companies opens the door to awards that are somewhat face saving for the STP. Having said all that, those in the know in the STP understand that ERHC has become a whipping boy and there is another side to the so-called sordid story."
