"It might be today or tomorrow, but just give it some time,” the source told Bassey, a veteran oil jourbnalist.
In a story from Tuesday's editions, Udo also says the oil giant is would lose its rights if it failed to exercise them by a a 30-day deadline that ends March 18.
Here is Udo's story from the Daily Independent:
ExxonMobil set to exercise JDZ rights
By Bassey Udo
Energy Editor
LAGOS -- ExxonMobil appears set to exercise its preferential rights in the five oil blocs put up for bids in the 2004 licensing round of the Nigeria-Sao Tome and Principe Joint Development Zone (JDZ).
Last week, top officials of the American oil major and those of the Joint Development Authority (JDA) held talks in Abuja, on the terms that will see ExxonMobil moving to exercise its rights within the stipulated 30-day deadline approved by the Joint Ministerial Council (JMC) last month.
A source close to the company at the weekend raised hope on the prospect of ExxonMobil exercising its rights in some of the plum acreages.
“I can tell you that discussions are still going on in Abuja. A decision is yet to be taken on the issue. There are a lot of issues to be resolved.
“But, right away, I can tell you that there is a high probability that the company will exercise its rights in some of the acreages before the expiration of the deadline. It might be today or tomorrow, but just give it some time,” the source said.
ExxonMobil is expected to “farm in” 25 per cent of its pre-emptive rights in any two blocs of its choice, preferably blocs 2 and 4, considered the most prolific of all the five on offer last December.
It was gathered that ExxonMobil may forfeit its rights in the acreage if it does not exercise them before the expiration of the March 18 deadline as there was no provision allowing a farm out to an interested party.
Nigeria’s Environmental Remediation Holding Corporation (ERHC), which has already exercised its rights, holds 15 to 30 percent stakes in all five blocs as well as exclusive rights to two oil blocs in the Exclusive Economic Zone (EEZ).
ERHC also has in the EEZ and another 15 per cent stake in two of the five blocs that will attract signature bonuses provided they match the highest price offered by the bona fide bidders. The JMC might convene next week to announce the final result and awards if ExxonMobil acts before Friday.
Copyright© 2004. All Rights Reserved
To clarify that last paragraph, ERHC Energy (OTC BB symbol: ERHE) has options in all of the five blocks on offer in the current second licensing round, a 15 percent option in Block 9, which has yet to be offered again after it failed to attract interest in the first round, and two 100 percent and two 15 percent options in the Sao Tome and Principe Exclusive Economic Zine. All of those 15 percent options require signature bonuses, as does another 15 percent option in Block 6, which attracted the fewest bidders in the current round.
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1 comment:
That's a fair question, Art. Based on what we know, though, there is no way to tell. However, they don't need to do the same thing with both choices, so a complex blend of interactions with other players is certainly possible.
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