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Sao Tome should follow example of Brazil and Timor in oil exploration



13.01.2014 15:21 | World
Source : Lusa






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http://portocanal.sapo.pt/noticia/14873/


Lisbon, 13th Jan (Lusa ) - Sao Tome and Principe should follow the example of Brazil and East Timor on the use of revenues that are expected to grow in the coming years for oil exploration, the Group considers the African Development Bank ( ADBG ) .

" May be taken into account other models of non-African Lusophone countries like Brazil and East Timor , who managed to properly manage their hydrocarbon resources and therefore avoid unnecessary distortions and undesirable outcomes to achieve a stronger sustainable growth " , defends the report of this African institution that examines the impact of increased state revenues from oil in the structural transformation of the economy of São Tomé and own development.

The Sao Tome Government on Friday launched the international tender for the operation of two oil blocks in the exclusive economic zone of the archipelago , the " area of blocks 1 and 6 of the exclusive economic zone ," according to a press release from the National Agency Petroleum .

Released in response to requests for information made by Blue Skies World Group and the London company Global Energy Limited , the contest requires a set of financial information by business stakeholders and specifies that proposals must be submitted by the end of the month .

The Agency's decision opens up new possibilities for oil drilling 'off -shore ' in the country , after the setback that was the decision last summer, the French company Total out of a project in Block 1 in the Joint Development Zone ( JDZ ) between Sao Tome and Principe and Nigeria .

In November, the Sao Tome government and Sinoangol company signed a production sharing oil block 2 of the Exclusive Economic Zone , the State has received five million dollars , approximately EUR 3.7 million , by signing the agreement .

" Good governance and efficient management of oil resources will provide a unique opportunity to structurally transform the economy " , so " it is imperative for the country to learn from the positive experience of other African countries (eg , Botswana , considered as a successful example ) that have efficiently managed its wealth in natural resources, " the document adds .

In the document that performs an analysis of the African economies , and dated December, the African Economic Outlook 2013 , launched by ADBG , we read that " the economic transformations in São Tomé relate to the announcement of the discovery of oil in the JDZ with Nigeria and in the Exclusive Economic Zone ( EEZ ) , with production scheduled for early 2016 . "

The report estimates that the country has received between 2005 and 2009 , almost 80 million dollars in " signing bonuses of oil contracts as a result of exploration contracts awarded on their different blocks ."

" The discovery of hydrocarbons in an insular economy offers tremendous prospects for inclusive growth but in the short term, some of the constraints to the structural transformation - as the scarcity of infrastructure , workers with appropriate qualifications in the labor market , the uncertainty surrounding rights property and poor land management, as well as backward financial and private sector - need to be removed , " recommends the report , praising some government initiatives to improve transparency and ensure that the resources of the ' black gold ' are channeled to improving the lives of the inhabitants .

" Sao Tome and Principe has a huge potential to become a middle income country , based on its size and its GDP ' per capita ' , to achieve an efficient management and
Transparent its wealth of natural resources , thus avoiding the call resource curse . If the country is to achieve sustainable and inclusive growth , should equip themselves with solid institutions , strengthen the capacity of ministries , including judicial institutions to enforce transparency and accountability and the fight against corruption, " the report concludes.

MBA ( MYB ) / / PJA