ERHC Energy to invest $100 mln to develop Sao Tome oil block
03/07/2014 12:19
SAO TOME, July 3 (Reuters) - Houston-based ERHC Energy Inc
ERHE.PK will invest around $100 million on exploration and
development of one of its blocks offshore Sao Tome and Principe,
the company's president said on Thursday.
ERHC signed a 28-year production sharing agreement with the
National Petroleum Agency (ANP) on Wednesday for block 11, which
lies in the central African island nation's exclusive economic
zone (EEZ).
"The company will spend about $100 million on seismic
studies and drilling on the block," Peter Ntephe said.
ERHC also has a 100 percent working interest in block 4,
also located in the EEZ.
Sao Tome, a tiny former Portuguese colony in Africa's Gulf
of Guinea, is surrounded by oil-rich neighbours but has failed
to find oil after several years of prospecting.
Other companies operating in the country include Equator
Exploration Ltd on blocks 5 and 12, Sinoangol - a joint venture
between China's Sinopec 600028.ss and Angolan state oil
company Sonangol - on block 2, and Nigeria's Oranto Petroleum on
block 3.
Fifteen blocks have yet to be awarded.
Sao Tome's government in February shortlisted four
companies, including Portugal's Galp Energia GALP.LS , to bid
on two oil blocks in the EEZ, according to a statement released
by state oil company ANP. ID:nL5N0LB3HZ
(Reporting by Ricardo Neto; Writing by Joe Bavier; Editing by
David Holmes)
((joe.bavier@thomsonreuters.com)(+225 07074101)(Reuters
Messaging: joe.bavier.thomsonreuters.com@reuters.net))
Keywords: SAOTOME OIL/ERHC ENERGY