ERHC Energy Inc (ERHE)

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***UPSTREAM NEWS*** **ERHC** *JDZ*

JDZ Blocks Lure Sinopec

By Upstream staff

CHINA'S Sinopec has agreed in principle to be operator of Block 2 in Nigeria and Sao Tome's Joint Development Zone (JDZ), writes Barry Morgan.
Sinopec's partners in the block will be ERHC Energy and Addax petroleum.

Pioneer Natural Resources had been offered operatorship of the block, but later withdrew.

In addition to the Block 2 deal, ERHC has signed a memorandum of understanding with Addax covering Block 3, from which Pioneer also withdrew.

It is understood the Nigerian authorities knew of Pioneer's pull out late last year, but gave ERHC time to find a new partner.

Production sharing contracts for most of the JDZ blocks on offer will be signed on 28 February, sources have said.

Negotiations for Block 2 may take longer as Sinopec's plan to join forces with ERHC and Addax Petroleum will need approval from Beijing.


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10 February 2006 00:02 GMT | last updated: 10 February 2006 00:02 GMT