Replies to post #214721 on ERHC Energy Inc (ERHE)

[EZMONEY36]

Nice find - sounds like a fast track in th EEZ!

[balance_builder]

Kingpindg....great find!

I find it extremely odd (HP?) that Petrobras was not named in the lusophone consortium but listed as one of the IOC's vying for blocks.

That makes me recall this dated article and your article "could" bring some clarity to it.



"Brazil's Petrobras interested in São Tomé oilfields
afrol News, 20 October - Brazil's national energy company Petrobras finally has demonstrated interest in the upcoming oil exploitation offshore São Tomé and Príncipe after having been invited to the country for years. Petrobras, which already operates in neighbouring Nigeria and Equatorial Guinea, sent a delegation to negotiate business terms with São Tomé authorities.

The Petrobras delegation went to the fellow Portuguese speaking archipelago before the weekend and had talks with São Toméan Natural Resources Minister Luís Moreira da Silva. The aim of the talks, Petrobras representatives told the news agency Pana, was to "effectuate businesses as soon as possible."

After the talks it however remained undisclosed how Petrobras was to enter in the São Toméan oil sector. Although invited by the government, Petrobras has so far not participated in any bid round to explore or exploit oil in São Toméan waters. There were also no tenders from Petrobras as seven oil blocks in the joint development zone shared by Nigeria and São Tomé and Príncipe last year were offered to international oil companies.

For the São Tomé government, it has however been of diplomatic importance to recruit the Brazilian oil giant to its still unexploited offshore oil fields. Brazil and São Tomé are strongly connected in the Community of Portuguese-Speaking Countries (CPLP), where Portugal and Brazil are the main investors.

During the state visit of Brazilian President Luiz Inácio Lula da Silva in São Tomé in November last year, his counterpart, President Fradique de Menezes had urged for Brazilian investments in his country's oil sector. The São Toméan President told President Lula that he had been disappointed as there had so far been no bid by Petrobras to exploit São Toméan oil.

While the Brazilian President at that stage could not promise any future tenders by Petrobras, the two Heads of State nevertheless signed an agreement regarding technical aid to develop the São Toméan oil sector. Brazil's National Petroleum Agency (ANP) since has assisted São Toméan authorities in creating a legal base for the national oil industry.

The Brazilian government since that is believed to have pressured the Petrobras executive to look into business possibilities in São Tomé. Petrobras is believed to enter the São Toméan market in cooperation with Chinese partner oil companies that already operate offshore the archipelago.

Petrobras is already heavily involved in the Gulf of Guinea. Its largest operations in the region are in Angola, accounting for almost 5 percent of the Brazilian company's foreign oil production. Petrobras is also involved offshore Nigeria and in a shared Nigerian-Equatoguinean zone, both operations being close to São Tomé's offshore zone."
http://www.afrol.com/articles/14591




This dated article (posted above) put together with your new release sure make for an interesting read. Strange as can be that Petrobras was not included in the Lusaphone Consortium.

Odd that they didn't know "how" Petrobras could become involved since they didn't bid on any of the JDZ blocks.

This line, however, really peaks my interest:


"Petrobras is believed to enter the São Toméan market in cooperation with Chinese partner oil companies that already operate offshore the archipelago."


Hmmm....maybe that answers the question of how they get into the JDZ??? Maybe, just maybe, since the Chinese are lending Petrobras huge sums of monies......they would like a free carry in the JDZ/EEZ since they have a huge and expensive project going on in their home waters. A little diversification when the monies tight sure can't hurt an international oil company.

Heaven knows that the Sao Tomeans would be salivating to know this consortium (involving "capable" Petrobras) was going to be in their (STP) waters/interests. Hmmm....they may even forego their EITI status to allow that to happen.


All conjecture.

[ERHClongtimer]

Very interesting find, Kingpin! - Longtimer

[ERHClongtimer]

"Prazeres has said that stable income from oil revenues for the country could be expected within five to six years."

This statement is taken from Kingpin's posted article - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=50360477

Here's the entire paragraph:

"In addition to its EEZ, the archipelagic nation has a 40% interest in the Joint Development Zone (JDZ) it shares with neighbouring Nigeria, but has so far struggled to develop a domestic oil industry. Prazeres has said that stable income from oil revenues for the country could be expected within five to six years. BMI views this timeline as optimistic given how underdeveloped the industry is and the delays and setbacks that have so far hindered development*, but does see longer-term potential given the country's location in the oil-rich Gulf of Guinea. If, however, the round attracts large well-capitalised IOCs into the country's nascent oil industry, development could move quickly. The country had hoped to begin production from its EEZ in 2011, but drilling efforts in 2003 and 2007 failed to yield commercial production opportunities." - BMI Middle East and Africa Oil and Gas Insights

*BMI (Business Monitor International Ltd) may have overlooked the fact that Prazeres was likely referring to oil revenues coming to STP from the JDZ, not the EEZ, in 5-6 years. Prazeres is painfully aware of how long things take in the oil patch, given STP's experience with the JDZ. So I seriously doubt he is expecting revenues from the EEZ within 5-6 years.

How could Prazeres make such a confident statement about an area (the EEZ) which hasn't been drilled yet or even has 3D seismic shot? However he could say that with confidence knowing positive results from the JDZ. Sounds commercial to me. - Longtimer