Replies to post #169806 on ERHC Energy Inc (ERHE)

[majicathome]

HP,
Minor points like direct negotiations only for blocks that don't have qualifying bids differ quite a bit from the previous related info.

Thanks

[Homeport]

STP/EEZ: Correction: For direct negotiations to begin Govt must allow 15 days (a fabulous fortnight) for other companies to express interest.

[redinvest]

Homeport

Thanks for the article. Interestingly, STP reserves 10-15% of the awarded blocks. Do you think this is in addition to the 50% the JDZ takes, or do you believe this is in lieu of the 50% ??

BTW, did you used to post on the STP Yahoo group that mainly dealt wuth tourism?? Something familiar about your ways.

Best,

Red

[Homeport]

STP/EEZ News: FYI, AFP agency carrying French-language piece with STP Parliamentary Affairs Min Justino Veiga saying new law was motivated, in part, by results of last JDZ licensing round.

Veiga says two blocks (assume he's referring to 5 & 6) remained unbid and previous STP law did not cover such situations if they arose in EEZ, thus new ability to negotiate directly if block unbid or bids unqualified.

http://www.romandie.com/infos/news2/090706180338AFP

[Homeport]

EEZ News: FYI, I've just scanned/read through the new Oil Framwork Law for 2nd time - all 18 chapters, 85 articles. Nothing struck my unpracticed eye as new in terms of what we'd already gotten via media and ANP chairman Prazeres' intrvu with Tela Non (see msg I'm responding to).

Of prime interest to us, IMO, are Chapter IV on Rules and Process for Auction and Chap V on State Participation. All EEZ blocks to be offered in auction; "direct negotiations" allowed in 2 circumstances (no bid, unqualified bids). STP reserves "right to participate" in exploration/development in terms established by awards/PSC contracts. (Prazeres said this could be 10-15% interest.)

National Petroleum Agency (ANP) given the authority to organize, carry out auctions (Prazeres said 4-6 blocks likely in 1st round expected towards year end).

There's no mention of ERHC or EEL rights or EEZ pecking order. No details given on how auction(s) will proceed. So the uncertainty as to when and exactly how ERHC (and EEL) will exercise its picks remains unclear - at least to me.

I also got copy of new oil tax law, but have yet to read. Not really my cup of tea. Wouldn't it be natural for the company to put out some reaction/explanation once it digests the meaning/signficance of the new law? I would think so.

Join me in wishing STP a Happy Birthday - 34 years of independence today!

Bests,
HP

[Homeport]

STP/EEZ News: Number of scholarships offered to train local oil personnel will be "important" factor in determining outcome of EEZ auctions, ANP chief Prazeres tells Tela Non.

Says STP currently has only 5 "higher (oil) professionals" educated in Nigeria, 9 "mid-level" staff trained in Angola and 8 more still studying in Angola's Sumbe oil institute.

Says partner World Bank has spent more than $1 million on training alone, plus covering 60% of ANP's new $480,000 HQ in Sao Tome.

Says payment of STP's $7.5 million debt to Norway's PGS for seismics should begin this year. (With what? EZZ sig bonuses?)

Tela Non recalls that islands' lack of trained staff left it "blind on entering oil business...leading to prejudicial accords such as the one signed with ERHC."

[Nightdaytrader]

Did JDZ blocks 5 & 6 cause STP to change law?

ND9
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Le gouvernement pourra négocier directement avec les sociétés pétrolières (article translated to English via altavista.com)


The government will be able to negotiate directly with the oil companies L' National Assembly santoméenne adopted last week a law authorizing the government to be negotiated directly with companies for l' attribution of oil blocks, subjected before to a call d' offers public. This law, voted on July 3, " allows the government to make l' direct attribution of the blocks (oil) which remain without propositions" after calls d' offers, affirmed the Minister for the parliamentary Affairs, Justino Veiga. L' old text required this procedure for any exploration or exploitation. It was revised with l' initiative of the government, after calls d' offers remained without proposal concerning two oil blocks in the zone occupied jointly by Sao Tome and Principe and Nigeria, according to Mr. Veiga. " After launching d' calls d' offers for blocks of oil in the common development area with Nigeria, we recorded a situation for which (preceding) the law did not envisage a solution. Two blocks remained without propositions" , he explained. In a discussion with media d' State diffused last weekend, the executive director of l' National agency of Oil, Luis back Prazeres greeted the new law, by underlining qu' it however imposed the transparency in the steps. One of its articles " open a window with the government for l' direct adjudication of blocs" , by allowing him " to negotiate directly with a company (...) but before, it must make public all the relative informations to the négociations" , Mr. back Prazeres declared. According to him, this publication must be done within ten day. To come into effect, the revised law must be promulgated by president Fradique de Menezes. " Traditionally, the promulgation is made 15 to 20 jours" after the vote of the texts by l' National Assembly, specified an legal adviser with the presidency, Aito Bonfim. Sao Tome intends to produce oil in 2010-2011, but economic and diplomatic sources estimate that its first crude barrels are possible for 2014. Published on July 6, 2009.