ERHC Energy Inc (ERHE)

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Sao Tome Clears Way for PSCs
Energy Intelligence

http://www.energyintel.com/DocumentDetail.asp?document_id=165439


Sao Tome and Principe's Parliamentary Commission on Petroleum Affairs has said that a probe into the controversial second licensing round in the Joint Development Zone (JDZ) shared with Nigeria should not hinder the completion of production sharing contracts (PSCs).


"For us, what was most important was to see the status of the [awards] dossier, the negotiations and see with the government how one could most quickly move forward with the [PSCs] that are underway," the head of the commission, Carlos Neves, told local Tela Non newspaper. "We took care to make public that all questions raised in the wake of the report had nothing to do with our relationship with Nigeria, which is a friendly country with whom we want to maintain the best relations. This has more to do with internal issues of our country," Neves said.


The investigation by the country's attorney general concluded that the second licensing round was "seriously flawed" and failed to meet minimum acceptable standards (OD Dec.13,p4). Winners were announced in June, but no contracts have been signed so far, and two US independents, Devon Energy and Noble, have since withdrawn. The report cited "serious procedural deficiencies and political manipulation." Observers say the PSCs could be signed as early as Jan. 11.


Sao Tome's prime minister, Maria do Carmo Silveira, has meanwhile returned the report to Parliament for further study. "We still don't have a definitive position [on the report]. We are carefully analyzing the situation and we will later make our position public."