So far, there is no additional news on the report.
Here is oil industry veteran Barry Morgan's report from UpstreamOnline
ERHC fires shot in licence row
by Barry Morgan
Houston-based ERHC Energy has described reports by the Sao Tome & Principe Attorney General calling for a US probe of the award of oil blocks under the 2004 licensing round of the Nigeria-Sao Tome Joint Development Zone as (JDZ) a direct attack on the Nigerian government.
Speaking for the first time on the issue, ERHC, through its counsel, Steve Ahaneku, urged the Federal Government to view seriously claims in the report that the bid round was a failure, as the Sao Tome government participated fully in all aspects of the process that led to the final award of the five blocks on offer.
ERHC, which had preferential rights in all the blocks in the zone by virtue of its involvement in exploration activities in the area prior to the creation of the zone, was awarded equity ranging from 15% to 65%.
In Block 2, where it emerged operator along with US companies Devon and Pioneer, ERHC was awarded a 65% stake. It won a 25% stake in Block 3 along with Devon, and 60% equity and operatorship of Block 4 as well as 15% in block's 5 and 6.
However, the Sao Tomean report is claiming that ERHC's participation in the bid round deterred qualified companies from the exercise, an allegation Ahaneku dismissed as factually incorrect, since the company brought into the bid process major US companies such as Devon, Pioneer and Noble, with experience in deep-water operations.
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16 December 2005 16:28 GMT | last updated: 16 December 2005 16:31 GMT
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