ERHC Energy Inc (ERHE)

[RUBY1100]

Nigeria,Sao Tome JDZ :Addax to operate bloc 4
By Hector Igbikiowubo
Posted to the Web: Friday, February 10, 2006
http://www.vanguardngr.com/articles/2002/nationalx/nr310022006.html


THE Joint Development Authority (JDA), the body administering hydrocarbon resources in the Nigeria, Sao Tome Joint Development Zone has approved Swiss oil firm: Addax Petroleum as the operator of oil bloc 4 in the Gulf of Guinea.

Addax replaces US independent oil firm, Pioneer Natural Resources which has pulled out of the consortium with ERHC Energy, the US-based company in which a Nigerian indigenous oil firm: Chrome Energy owns majority stake.

Mr. Walter Brandhuber, President and Chief Executive Officer of ERHC Energy told reporters yesterday that Addax is expected to bring to bear on the consortium, its wealth of experience in oil exploration and production particularly in the Nigerian offshore area.

“The JDA has approved Addax as the operator for bloc 4. The approval was given last week,” Brandhuber said, adding that ERHC has already written to the JDA its readiness to sign the Joint Operating Agreement (JOA) and Production Sharing Contract (PSC) for bloc 4.

“I can confirm that both parties (Nigeria and Sao Tome) represented in the Joint Ministerial Council have now approved the Addax operatorship of bloc 4,” a spokesman for the JDA pointed out confirming the approval granted to Addax.

By the JDA approval, Addax has now replaced all the major American oil firms in the consortia with ERHC Energy in exercising all the rights granted it by the JDA in the five oil blocs awarded last May. The consortia included the ERHC/Devon/Pioneer in Bloc 4.

Meanwhile, the Joint Ministerial Council (JMC) of the JDA yesterday, agreed to convene a meeting on January 28, 2006 in Abuja, to consider and approve the Production Sharing Contract (PSC) guiding operations in the five oil blocs awarded last year.