Nigerial, SAO Tome To Relaunch Oil Licensing In Joint Zone

Nigeria and the tiny archipelago Island of Sao Tome and Principle will re-launch in May a stalled licensing round fro oil blocs in their joint development zone, Sao tome's minister said. Exploration in the zone has so far proved disappointing. Chevron said an early oil strike had not proven commercially viable, but it was continuing drilling. China's Sinopec and Switzerland's Addax are also exploring there.

Sao Tome's Prime Minister Patrice Trovoada told reporters on his return from a meeting in Nigeria earlier this week that an agreement had been reached to hold a meeting in may at the archipelago to decide on the adjudication of two outstanding blocks and the approval of the joint authority's budget. The licensing process ground to a halt 18 months ago. “There will be another meeting of the Joint Ministerial Commission here in Sao Tome in three months,” Trovoada said, emphasizing his concern for the slow development of the joint area. Sixty percent of any government revenues from the area will go to the Nigerian government while Sao Tome will receive the remainder. One of the poorest countries in the world Sao Tome won debt relief last year from the World Bank and IMF. Its people had hoped that oil would bring prosperity to the former Portuguese colony, after large discoveries in the neighboring countries such as Equatorial Guinea.

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