Sao Tome & Principe
Sao Tome reaches agreement on oil exploitation with Nigeria
afrol.com, 24 March - The Minister of Foreign Affairs an Cooperation of Sao Tome and Principe, Rafael Branco, yesterday explained the plans for oil exploitation on the continental shelf of the island state, in specific the revenue sharing between Sao Tome and Nigeria.
According to the recently signed treaties between Sao Tome and Nigeria, Sao Tome will obtain 40 percent of the revenues from the oil exploitation, while the rest goes to the Nigerian state. Currently, Sao Tome and Nigeria are exploring the oil resources in the Sao Tomean part of the Gulf of Guinea, one of Africa's oil richest offshore areas.
According to Branco, the composition of the executive board of the body running the exploitations is already agreed upon; it will be led by a ministerial council. The operations on block 246 are mostly determined, Branco said. Block 246 is the offshore area were most oil resources have been found so far. Sao Tome is to cede the oil exploitation on this block unilaterally to Nigeria, a country with long traditions in oil production.
The Sao Tomean government representative said he had no doubts that the joint exploitation in this part of the Atlantic Ocean would be the solution giving most benefits to the two parties. Sao Tome earlier had led negotiations with different international oil companies interested in exploiting the zone, but cancelled these negotiations.
As there does not exist a bilateral agreement of the exact delimitation of the maritime borders between the two countries, Nigeria and Sao Tome decided on exploiting this limited part of the Gulf of Guinea jointly. Nigeria, having the infrastructure for offshore oil development, therefore gained a 60 percent of the revenues, 40 percent going to Sao Tome and Principe.
Source: Based on RDP
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