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Nigeria-São Tome and Príncipe joint exploration area contains oil

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São Tomé and Prínciple and Nigeria have found an estimated amount of nearly 100 million barrels of commercially viable oil in Bloc 1 of the joint area, the head of the Joint Exploration Authority told Macauhub in São Tomé.
Luís dos Prazeres said the “quantified and proven figures” followed studies conducted from 2010 to 2013 by the French oil company Total, which held the prospecting right for that bloc.
Given Total’s withdrawal, dos Prazeres said the Authority was now considering a bid from another company that wants to begin the extraction phase in September 2015.
“The talks are very advanced and we will soon sign a new contract,” he said. He did not identify the company, identifying it only as a “medium-sized company from the sector.”
Total withdrew from Block 1 of the joint area in August of last year. It had previously been abandoned by US group Chevron in 2010, with the same argument that commercially viable oil did not exist.
Nigeria and São Tomé and Príncipe decided to create a joint development zone in a treaty signed on 21 February 2001, which stipulated that revenues would be split, with 60 percent going to the Nigerian state and 40 percent to São Tomé and Príncipe. Since 2003 the Joint Authority has held two bidding rounds for oil blocks, which led to the signing of five shared production contracts.
São Tomé and Príncipe has earned USD77.8 million to date in bonus signing revenue in the wake of the two official tenders in 2003 and 2004. MDT/Macauhub

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