Nigeria explains 30,000 bpd crude to Sao Tome and Principe
From Madu Onuorah, Sao Tome & Principe
MORE light has been shed on why Nigeria allocates 30,000 barrels per day (bpd) of crude oil to Sao Tome and Principe.
According to Nigeria's Ambassador to the oil rich border nation, Mr. Saidu Pindar, it is borne out of a desire to help in the social transformation and improvement of the economy of the tiny island.
Under the deal agreed as part of peace building efforts to ensure the survival of democracy after the unsuccessful coup of 2003, Sao Tome is to trade with the proceeds of the crude oil allocation and use its proceeds to provide basic service to its citizens.
Pindar told a select group of journalists from Nigeria in his office that apart from the interest free loan of $15 million given to the country, a confirmed payment of $37 million being the country's signature bonus from bids for Block One has been paid to the Santomean government.
The $15 million loan is to be refunded on its receipt of the proceeds of signature bonus on the second round of oil licensing which was concluded last June.
Explaining that there was nothing strange in the release of the 30,000 bpd of crude oil, Ambassador Pindar noted that Ghana and South Africa are currently benefiting from the scheme.
He confirmed that Nigeria has already fulfilled all the obligations it made to Sao Tome & Principe shortly after the botched coup of 2003 including provision of ambulance, water tanker, motor cycles, drugs and office equipment.
In addition, three officers of the Santomean military have benefited from training programmes in Nigeria. While two have finished and returned to Sao Tome & Principe, one is still at the tri-service institution - Command and Staff College, Jaji, Kaduna State.
Also, according to Pindar, a total of seven students are currently undergoing training at the Petroleum Training Institute, Effurum near Warri, Delta State in order to help with the provision of trained manpower for the country's oil sector.
Said Mr. Pindar, "in line with the Nigerian government's commitment to improving the country of Sao Tome, we give the government about 30,000 barrels of crude per day to trade and make profit. I understand the government use part of the proceeds to train about 200 students in Portugal and Cuba. In the oil sector, the Joint Development Zone is proceeding well. Sao Tome & Principe received about $37 million, which was transferred to them since July as their share of signature bonus on Bloc One. We are presently concluding Production Sharing Contract on five additional blocks in order to get additional revenue. Just last week, Chevron said it would start oil exploration in January regarding Bloc One."
He noted that there is a remarkable improvement in economic activities between the two countries especially with the involvement of the private sector.
"We have signed Bilateral Air Services Agreement (BASA) though Aero-Contractors is yet to commence operation. The BASA agreement has allowed Afrijet to fly from Lagos direct to Sao Tome twice a week. We now have a small shipping operation between Sao Tome and Calabar where traders go to buy goods and sell here. In fact, informal trade has actually increased and there have been more interactions between Nigerian businessmen and their counterparts in Sao Tome and Principe," he said.
The result of this, he said, is the plans by Nigerian businessmen to build hotels, resorts and a golf course. Already, a Nigerian bank, Island Bank is currently in operation is Sao Tome while NICON Insurance Sao Tome is being incorporated. In the same vein, a second Nigerian bank, Ecobank wants to establish as quickly as possible in Sao Tome.
Pindar also disclosed that Nigeria has rendered quality services to the Saotomean military through the Technical Aid Corps, adding that with the expiration of the current tour of duty of the volunteers, the Santomean government has asked for a fresh deployment of new ones, indicating they would welcome specialists in the medical fields.
