Mineral industry of São Tomé and Príncipe
Encyclopedia
The mineral industry of São Tomé and Príncipe
does not play a significant role in the country's economy.
and volcanic rock
; potential exists, however, for the development of the country’s petroleum industry. All other mineral product requirements were imported.
s in São Tomé and Príncipe were first noted in 1974, but attempts by the Portuguese Colonial Administration to sign a concession agreement with Ball & Collins North Sea consortium (a predecessor of Premier Oil of the United Kingdom
) were abandoned following the country’s declaration of independence in 1975. Other attempts to start petroleum exploration during the late 1980s and 1990s also failed. In 2003, Nigeria
(60%) and São Tomé and Príncipe (40%) agreed to jointly operate an overlapping maritime boundary
located about 200 km offshore Nigeria known as the Joint Development Zone (JDZ). Activities in the JDZ were to be overseen by the Joint Development Authority (JDADA). The JDZ was divided into nine blocks, and a licensing round was opened for bids in 2004, which resulted in the award of Block 1 to a consortium made up of Chevron Corporation of the United States
(51%), Esso Exploration and Production Nigeria-Sao Tome (One) Ltd. (40%), and Dangote Energy Equity Resources Ltd. (a joint-venture of the Dangote Group of Nigeria and Energy Equity Resources AS of Norway
) (9%). The consortium signed a production-sharing agreement with the JDADA in 2005 and, in January 2006, began drilling activities within the block. In May 2006, the consortium announced that it had encountered hydrocarbons in the Obo-1 exploration well in Block 1 and that it was in the process of evaluating reservoir rock and liquid samples to determine the next step of the appraisal process. Block 1 is located about 300 km north of São Tomé and Príncipe and about 200 km south of the city of Port Harcourt in Nigeria.
Asecond licensing round for Blocks 2 through 6 was opened for bids in 2005. Energy Inc. of the United States (ERHC) won the rights to these blocks and, in March 2006, the company signed a series of production-sharing agreements with the JDADA and several petroleum and gas companies, among which were Addax Energy Nigeria Limited, Addax Petroleum (Nigeria offshore 2) Limited, Addax Petroleum Resources Nigeria Limited, Sinopec International Petroleum Exploration and Production Corporation Nigeria, and several other petroleum and gas companies whose names were not disclosed. Following inquires by the Petroleum Affairs Commission, the National Petroleum Council recognized deficiencies in the awarding process and ordered a formal investigation. The Attorney General, after concluding that the procedures used in selecting petroleum companies was flawed, recommended a restructuring of the procedures for future bidding rounds that would conform to international standards. The Attorney General’s report also called for the reexamination of ERHC’s preferential rights for Blocks 2, 3, 4, 5, and 6 within the JDZ. Since 2006, there has been no word on any of the reexamination of ERHC's preferential rights and the countries of Sao Tome and Nigeria are moving forward with the exploration of the JDZ for oil. In or about July 2009 there are scheduled two oil rigs to start exploration and drilling of petroleum reserves within blocks 2-4 and ERHC is predominant in these blocks. With the possible acquisition of Addax Petroleum by Sinopec, and with the reports of Sinopec looking into acquiring ERHC, it is looking more like Sinopec will be the mainstay of the JDZ for Sao Tome and Nigeria in this area.
São Tomé and Príncipe
São Tomé and Príncipe, officially the Democratic Republic of São Tomé and Príncipe, is a Portuguese-speaking island nation in the Gulf of Guinea, off the western equatorial coast of Central Africa. It consists of two islands: São Tomé and Príncipe, located about apart and about , respectively, off...
does not play a significant role in the country's economy.
Production
Mineral production was limited to clayClay
Clay is a general term including many combinations of one or more clay minerals with traces of metal oxides and organic matter. Geologic clay deposits are mostly composed of phyllosilicate minerals containing variable amounts of water trapped in the mineral structure.- Formation :Clay minerals...
and volcanic rock
Volcanic rock
Volcanic rock is a rock formed from magma erupted from a volcano. In other words, it is an igneous rock of volcanic origin...
; potential exists, however, for the development of the country’s petroleum industry. All other mineral product requirements were imported.
Petroleum
Indications of the existence of hydrocarbonHydrocarbon
In organic chemistry, a hydrocarbon is an organic compound consisting entirely of hydrogen and carbon. Hydrocarbons from which one hydrogen atom has been removed are functional groups, called hydrocarbyls....
s in São Tomé and Príncipe were first noted in 1974, but attempts by the Portuguese Colonial Administration to sign a concession agreement with Ball & Collins North Sea consortium (a predecessor of Premier Oil of the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
) were abandoned following the country’s declaration of independence in 1975. Other attempts to start petroleum exploration during the late 1980s and 1990s also failed. In 2003, Nigeria
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
(60%) and São Tomé and Príncipe (40%) agreed to jointly operate an overlapping maritime boundary
Maritime boundary
Maritime boundary is a conceptual means of division of the water surface of the planet into maritime areas that are defined through surrounding physical geography or by human geography. As such it usually includes areas of exclusive national rights over the mineral and biological resources,...
located about 200 km offshore Nigeria known as the Joint Development Zone (JDZ). Activities in the JDZ were to be overseen by the Joint Development Authority (JDADA). The JDZ was divided into nine blocks, and a licensing round was opened for bids in 2004, which resulted in the award of Block 1 to a consortium made up of Chevron Corporation of the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
(51%), Esso Exploration and Production Nigeria-Sao Tome (One) Ltd. (40%), and Dangote Energy Equity Resources Ltd. (a joint-venture of the Dangote Group of Nigeria and Energy Equity Resources AS of Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
) (9%). The consortium signed a production-sharing agreement with the JDADA in 2005 and, in January 2006, began drilling activities within the block. In May 2006, the consortium announced that it had encountered hydrocarbons in the Obo-1 exploration well in Block 1 and that it was in the process of evaluating reservoir rock and liquid samples to determine the next step of the appraisal process. Block 1 is located about 300 km north of São Tomé and Príncipe and about 200 km south of the city of Port Harcourt in Nigeria.
Asecond licensing round for Blocks 2 through 6 was opened for bids in 2005. Energy Inc. of the United States (ERHC) won the rights to these blocks and, in March 2006, the company signed a series of production-sharing agreements with the JDADA and several petroleum and gas companies, among which were Addax Energy Nigeria Limited, Addax Petroleum (Nigeria offshore 2) Limited, Addax Petroleum Resources Nigeria Limited, Sinopec International Petroleum Exploration and Production Corporation Nigeria, and several other petroleum and gas companies whose names were not disclosed. Following inquires by the Petroleum Affairs Commission, the National Petroleum Council recognized deficiencies in the awarding process and ordered a formal investigation. The Attorney General, after concluding that the procedures used in selecting petroleum companies was flawed, recommended a restructuring of the procedures for future bidding rounds that would conform to international standards. The Attorney General’s report also called for the reexamination of ERHC’s preferential rights for Blocks 2, 3, 4, 5, and 6 within the JDZ. Since 2006, there has been no word on any of the reexamination of ERHC's preferential rights and the countries of Sao Tome and Nigeria are moving forward with the exploration of the JDZ for oil. In or about July 2009 there are scheduled two oil rigs to start exploration and drilling of petroleum reserves within blocks 2-4 and ERHC is predominant in these blocks. With the possible acquisition of Addax Petroleum by Sinopec, and with the reports of Sinopec looking into acquiring ERHC, it is looking more like Sinopec will be the mainstay of the JDZ for Sao Tome and Nigeria in this area.