ERHC Energy Inc (ERHE)

[RUBY1100]

JDA nod for ERHC move

By Upstream staff


Nigeria and Sao Tome's Joint Development Authority (JDA) has approved Houston-based ERHC Energy's request to replace Noble Energy with Addax Petroleum in a consortium which won exploration rights in the Gulf of Guinea.

Noble, which won a 60% stake in Block 4 in May, withdrew from the consortium, prompting ERHC to sign a deal with Swiss-based Addax, ceding operatorship of the Gulf of Guinea block.

The JDA said the new consortium must accept all of the terms of the award and pay a $90 million signature bonus before Addax can assume the role of operator, a Reuters report said.

The ERHC/Addax consortium must also accept the production sharing contract timeline and agree to speed up talks on a joint operating agreement with other shareholders.

Addax, which already operates four licences in Nigeria, is involved in a technical partner agreement with Overt Ventures, which won a 5% stake in Block 4.

Nigerian player Conoil and two other Nigerian independent also hold small stakes in Block 4.