If correct, the comment by muktawdadi indicates that XOM could get an additional seven-day grace period if it fails to exercise its 25 percent preferential options in Blocks 2 through 6 of the Nigeria-Sao Tome and Principe Joint Development Zone.
Muktadawdi also indicated that ExxonMobil is not the key reason the awards have been so long delayed, and that the PSC for Block 1, which has been signed but but not paid for, is held up due to boundary changes that were required - and adjustments in acreage holdings by several majors that in turn were affected.
He (or she) writes:
As for the PSC on block 1: the delay relates solely to the time it has taken Nigeria finally to sign into law and gazette boundary changes with the JDZ, and to secure waivers from Total, Petrobras and South Atlantic for acreage previously in Nigerian block 246 and now in JDZ block 1.
That process was complete last week. Chevron Texaco, ExxonMobil and Energy Equity Resources/Dangote (or perhaps Afren, which claimed in its London IPO on Monday to have a deal on half Dangote's stake and tripled in a day) have until second week of April to pay the $123m signature bonus.
On the 2004 JDZ licensing round - ExxonMobil's 30-day notice for exercising its options closes on 18th March. It is very likely they will receive a further 7-day grace period. If by then the company has not indicated a choice, the JDA will conclude that Exxon has chosen not to exercise and call a JMC meeting - which, depending on logistics, may happen before the end of the month.
8 comments:
Chevron payed the signature bonus money last week. Someone had posted the article yesterday.
Bonus Caught in Logjam
Several legal obstacles and the late arrival of Afren temporarily held up Chevron's payment of a bonus on block 1.
The payment of a $123 million bonus by Chevron on block 1 in the Joint Development zone between Nigeria and Sao Tome wasn't made, as scheduled, when a production sharing agreement on the acreage was penned last month. AEI understands Chevron held back payment for over a month, finally disbursing it only last week.
In the meantime, the Joint Development Authority which oversees the zone has asked Total and Petrobras to renounce their rights in writing on the southern tip of OPL 246 in Nigeria's offshore, a 100 sq.km. zone that abuts the JDZ . In addition, the composition of the consortium that will work block 1 was modified at the last minute to allow Afren, a new company headed by Rilwanu Lukman, to acquire a 4.41% stake on the license (AEI 387). Afren won a listing on London's Alternative Investment Market last week. Chevron plans to drill a first well on block 1 in coming months.
Meanwhile, officials from ExxonMobil traveled to Nigeria last week to negotiate with the Joint Development Authority and the Nigerian authorities. Exxon has an option to acquire 25% on two of the licenses put out to tender last December by the JDA but is taking its time to exercise the option, to the irritation of the Nigerian authorities who would like to see the licensing round in the JDZ finish quickly.
http://www.africaintelligence.com/detail/detail_ART/p_detail.asp?DOC_I_ID=13230796&Context=REC&ContextInfo=jdz||Tous&CodeAffilie=A_INDIGO&SER_ID=ART&PAGE=1&searchtext="jdz"
Exxon better not string this out until next week. To all of those who think Exxon is not the cause of the delays think again.
Exxon has too many layers of management and moves too slow. Thats why they would be the wrong choice for operator in a block. Because if they are moving this slowly during awards imagone how slow they would move to develop a block. They are not exactly in "fast track" mode.
Exxon should have already had a pretty good idea of what they were going to do. So I do not expect them to take beyond March 18th.
mutwadadi is postoing misinformation and Joe bought it hook line and sinker, and even posted it. Chev paid its $123M last week. shows how much he doesn't know.
I guess no buyout till April? Is there a 3 day weekend coming? LOL!
Mutwadadi is probably accurate.
Thanks for the info mutwadidi very informative comments. Best of luck to you.
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