ERHC Energy Inc (ERHE)

[RUBY1100]

Oil licences: Nigeria Rejects Sao Tome’s call for US probe

By Tokunbo Oloruntola

On-Line Editor (with Agency report)
http://www.independentng.com/news/nndec150509.htm

Nigeria has rejected call by Sao Tome on the United States to probe the joint oil licences awarded to the US-based EHRC, recently acquired by a Nigerian.

Protesting the call for probe, Nigeria expressed concern over its existing oil treaty with the neighbouring state.

Nigeria and Sao Tome were due to sign five oil exploration contracts with foreign investors this week.

But São Tome's attorney general, alleging improper payment by the US-based EHRC to the country’s officials, said the agreements might be void.

Sao Tome is expected to lose $58.6 million because of waivers accorded to ERHC and that the rights given to the company were so favourable that they might violate its law.

Sao Tome called for an investigation by the U.S. Securities and Exchange Commission into the alleged payments.

ERHC, however, said it had no contact with officials during the licensing process.

Minister of State for Petroleum, Edmund Daukoru, told Reuters that the report was based on poor information and a product of internal wrangling at the top of the Sao Tome

Government.

"My first reaction is just to reject the report in its entirety. They cannot come after the event to condemn because of their own internal politics,” Daukoru said.

Sao Tome, he said, was struggling to cope with a system of government where the president is from one party and the prime minister is from another.