When Carvalho talks about changes, it resonates to most investors as "ERHC Energy." But some Sao Tomese were known to be upset about awards to Nigerian indies Godsonic, A&Hatman, Momo Petroleum and Conoil, each of which has a powerful Nigerian figure as its sponsor and none of which have drilling experience, nor, some say, the financial wherewithal to support a drilling regime.
With the knowledge and consent of his government, the oil minister is apparently a shareholder in sme of the companies involved in the JDZ bids, and he is a member of the ADI party associated with fired Sao Tome presidential oil advisor Patrice Trovoada, a "still-powerful" figure who lobbied too hard for larger participation by Equator Exploration (EEL) and was fired for it.
On Monday, Sao Tome President de Menezes said Carvalho needs to stay on the job, among other reasons, so that investigators can examine his portfolio.
Meanwhile, a veiled warning to the Sao Tome delegation was apparent in the words of Abubakar Tanko, a Nigerian deputy foreign minister and JMC member who is apparently saying, "Don't push us too far."
Here is the Reuters piece, slightly truncated:
Wed May 25, 2005
8:28 AM GMT+02:00
Sao Tome/Nigeria to award oil blocks after delay
By Felix Onuah
ABUJA (Reuters) -- Sao Tome and Nigeria expect to make a final decision on the long-awaited award of oil exploration licences at a meeting in Nigeria that began on Tuesday night, a Sao Tome official said.
A five-month delay in awarding five licences, located in a highly prospective offshore region in the Gulf of Guinea which is jointly administered by the two countries, has raised questions over the integrity of the process, Nigeria said.
"We hope this meeting will conclude our decisions for the award of the oil blocks," said Sao Tome Minister of Natural Resources Arlindo Carvalho. "We could not achieve this in earlier meetings because when we went home after a deep analysis we came to the conclusion that some things needed to be done," he added, without saying what.
. . .
Nigeria's junior minister of foreign affairs, Abubakar Tanko, said the delays were eroding credibility in the licensing process.
"If we continue to allow extraneous factors to guide our thoughts and decisions it will seriously affect the bond of partnership," Tanko told reporters before the meeting.
8 comments:
They cant make "too many" changes or that will allow Exxon to complain that they should be allowed to reevaluate the blocks and should have an additional 30 days to do so.
Maybe that is what the true intent of the Sao Tomeans is in the first place. To allow Exxon back in.
I hope I am wrong.
Joe,
I disagree with your belief that ERHE is the bone of contention. The only thing that is causing issues are the ERHE rights, which are not negotiable. All the printed material I read on your board and others refers to the small percents in each block awarded to the Nigeria independents. I suspect there will be a small reallocation of the lesser percentage award, but no the major players and operators. The quality of the larger bidders, and winners is clear. The awards have been made based on technical ability to drill and produce oil. The indies do not have those skills, so are simply along for the ride, and that is the frustration for a few in DRSTP with ownership interests in the indies.
I hope oyu're right, 9:16. I posted some additional stuff a moment ago, before seeing your comments, that seem to answer them.
Joe,
Yesterday you countered my statement that Carvalho held shares in ERHC, stating I was mistaken. I posted a retraction that perhaps I was. Today you state his is. I'm confused...
SH70
We haven't had any great news today. You can't believe anyone at the JDA. The only real news we got is that Sao Tome wants changes.
no one gives a damn what you're having for lunch - stick to business.
Mark you must be a perpetually optimistic guy.But a little dose of reality is needed.
One of the JDA's jobs is to keep everyobody calm and lead them to believe everything is ok and mooving along smoothly. The JDA tells you want you want to hear. They dont tell you about the difficulties they are encountering with the Sao Tomeans etc etc. because they do not want to create a panic.
Having said that how can you continue to be naive to believe every single thing that they tell you when they have been wrong about awards time and time and time again.
Im not saying they are bad people. To the contrary. I like Sam Dimka. But they have a job to do and their job is to make you think everything is ok when in reality it might not be.
And in addition to that the Sao Tomeans are never the ones making the positive comments. it is always the Nigerians.
Which leads me to believe the Sao Tomeans have ulterior motives.
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