Replies to post #169399 on ERHC Energy Inc (ERHE)

[kobiashi2000]

Thanks HP!

[RUBY1100]

Homeport "Energy firms seeking oil exploration rights in Sao Tome’s EEZ will be allowed to bid directly"

So Sinopec Bids Directly - gets the best 2 blocks and then gets ERHC to select those blocks so no Sig. Bonus

ERHC gets 60% and Free Carry
Sinopec gets 40%

Me thinks this is a good thing

[RUBY1100]

or is this STP's way of having the oil firms choose their primo blocks first without a formal round

then when the scraps are left and they have the round, then ERHC picks

maybe this is how they Mitigate our block selection

Me Thinks STP Are very Sneaky

[RUBY1100]

Is anyone worried about this?

Seems STP may succeed in Mitigating our rights if the best blocks are allowed to go in a private tender

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STP/EEZ News: Lawmakers pass new oil laws to open door for launch of EEZ licensing round

Sao Tome, July 3 (Lusa) – MPs in Sao Tome and Principe approved new oil legislation Friday that the islands’ government says is needed to auction oil exploration blocs in its exclusive economic zone (EEZ) later this year.

Sao Tome’s 55-seat Parliament, without debate, unanimously supported the new oil legislation, which governs the tender process for exploration contracts and taxation of hydrocarbons revenues. The bills will be sent within five working days to President Fradique de Menezes, who has 30 days to promulgate the new legislation.

The new legislation relating to oil contracts permits closed tenders in specially defined circumstances. Energy firms seeking oil exploration rights in Sao Tome’s EEZ will be allowed to bid directly to the archipelago’s oil authorities for these contracts.

Notification of such approaches, under the new law, must be made public by the government, which can only begin negotiations with the company concerned if no other party formally expresses its interest within two weeks.

Sao Tome’s National Petroleum Agency (ANP) said this week the EEZ licensing round would be launched in November, subject to approval of the new oil laws. ANP chief executive Luis Prazeres told Lusa there is already strong interest among international oil companies in bidding for EEZ production sharing contracts.

[Homeport]

STP/EEZ: Islands’ Tela Non gives some detail of new Oil Framework Law and EEZ prospects in intrvu with National Oil Agency (ANP) chief Luis Prazeres.

Highlights of online article titled: “New Oil Framework Law Allows Govt to Create EEZ Exploration Consortium”:
- 80% of preparatory work for EEZ auction already concluded. Auction could take place by year’s end if Pres Menezes signs new legislation by end this month. Otherwise, early next year.
- “It’s just a matter of the Govt deciding” as ANP ready to go.
- 14 blocks have been delineated, but only 4 to six likely included in first licensing round ‘cause it’s a “young (untested) zone.” All blocks must be offered in auction.
- 2-D seismics indicate EEZ has “reasonable” prospects of commercial oil.
- New law clearly differentiates between the responsibilities of the regulatory ANP and the future NOC, which can participate directly in exploration, production and sales. Also allows appearance of STP “Indies.” (Prazeres notes STP learned much in the two JDZ rounds.)
- Govt may reserve for itself 10-15% of awarded blocks.
- Un-bid blocks or those only getting bids that fail official criteria may later be negotiated directly with interested companies. Govt may only respond to interest, not make invitations.
- In such cases, Govt must publicly announce interest within 15 days. If other suitors emerge, a “restricted licensing round” must be held. Otherwise, one-on-one negotiations. Details of any deals must be published in media within 10 days of agreement to assure transparency.

Tela Non recalls STP's efforts, beginning with Pres Menezes about three years back, to launch a 4-way “Lusophone consortium” with Angola, Brazil and Portugal, a scenario that was blocked by previous legislation, primarily crafted by Columbia University specialists.

Note: Hope this helps clarify some of your/our doubts.