The language Reuters used in a story long on history but short on quotes suggests that the required consensus - agreement by everyone - was obtained among the delegates from both states, but De Menezes has the tougher job of selling the agreement to his countrymen, who have proved both fractious and resistant in the past.
In Sao Tome, the awards have to meet a consensus of the National Petroleum Council and the National Petroleum Agency, and may be reviewed by Parliament, where the opposition Movement for the Liberation of Sao Tome and Principe (MLSTP) is in control. It was the MLSTP that forced the awards to be reviewed again by the Nigeria-DRSTP Joint Ministerial Council, so there could be a well-founded presumption that the party will accept the new awards document.
It is less likely to run into trouble with either the NPC or NPA, two institutions created by the country's new "transparency" law that has led to a bevy of resignations and the firing of former special presidential advisor on petroleum Patrice Trovoada, who is a likely candidate against President de Menezes in the 2006 presidential elections.
But it is unclear how long the process might take a second time, and indeed, whether the awards process will survive the "transparency" requirements. At best, the process could be complete by the end of the three-day weekend, or at worst, be dragged out for several more weeks. Most observers would probably say rapid approval is the more logical outcome.
In Nigeria, the process is simple; upon his return from Paris, President Olusegun Obasanjo can either sign the awards document or not, and that is the end of the matter.
The lead paragraph of the Reuters story gives a much different impression of the actual outcome of the JMC meeting, since it says the parties failed to award the blocks. However, the statement issued by the governments said they had reached agreement on "all the blocks." Th delegations are not empowered to award the blocks without approval from the two heads of state.
The entire story was posted in the Raging Bull ERHE message board.
Here is are a few paragraphs of the story, which is by Felix Onuah and from Abuja:
REUTERS
Sao Tome/Nigeria fail to award oil blocks again
by Felix Onuah
ABUJA, May 26 (Reuters) - Sao Tome and Nigeria failed again on Thursday to award oil exploration licences after a two-day meeting that sought to end five months of delays plagued by discord and corruption allegations.
A communique issued after the ministerial meeting in the Nigerian capital said the two parties had come to a "harmonised position on all the blocks," but added that this was "subject to the endorsement of the heads of state."
At the previous ministerial meeting in April, the two sides also said they had forwarded recommendations to the heads of state for endorsement.
The offshore blocks are in deep water in the Gulf of Guinea, one of the world's exploration hotspots since a series of huge oil discoveries over the last decade.
In another report that suggests pretty much the same thing and mentions ERHC Energy in a negative light, afrol news reports agreement on the shape of the latest awards, too, citing Sao Tome oil minister Arlindo de Carvalho as a source:
New oil block awards after São Tomé corruption scandal
By staff writers
ABUJA 25 May 2005 (afrol News) -- Licensing of oil blocks in the Nigeria, São Tomé and Príncipe Joint Development Zone (JDZ) is set to resume after a delay of five months. The delay came after a scandal involving corruption charges and the temporary resignation of São Tomé's Natural Resources Minister Arlindo Carvalho, which only ended after the personal intervention by Nigeria's President Olusegun Obasanjo.
Government officials in São Tomé and Príncipe today told the press in Nigeria that there was reached an agreement on going on with the JDZ licensing process of five oil and gas blocks in their jointly administered waters. Final decisions on the new awards could now be announced within a short time, the official indicated after having met his Nigerian counterparts.
The licences of the five blocks were originally to be awarded in January this year, but the JDZ's administration agency could not come up with a decision at that stage. This rapidly caused speculations on a possible power struggle between the different interests represented in the agency and its overall integrity.
In particular the relatively small and unknown US-based Environmental Remedial Holding Corporation (ERHC) has been at the focus of possible corrupt practices at the Joint Development Authority (JDA). ERHC had obtained preferential rights on the most promising blocks during the first licensing round, which it now was to make use of.
According to investigations by Nigeria's independent press, a company belonging to Nigerian businessman Emeka Offor holds around 50 percent of the shares in ERHC. Mr Offor is reported to have had close links with Nigeria's former military dictator Sani Abacha and ERHC has never documented any oil exploration or drilling experiences from other parts of the world.
While the "oil company" originally was brought aboard by the São Toméan government in a 1997 contract, current President Fradique de Menezes is reported to be eager to exclude ERHC from further oil deals in the JDZ. President Menezes is further accused by the São Toméan opposition of abusing his double role in the national Petroleum Council and receiving cash from other Nigerian-controlled bidders.
The apparent power struggle in the JDA had paralysed its awards of five new blocks for five months, causing São Tomé's Nigerian partners to lose patience. President Menezes fired his adviser on petroleum issues, Patrice Trovoada, accusing him of furthering his private business interests and delaying the award process. Another adviser, Manuel Rita, was also sacked after it was known he owned shares in ERHC.
São Tomé's Minister of Natural Resources, Arlindo Carvalho, last week found it was impossible to continue working in the current environment of suspicions and allegations and resigned from his post. The resignation was however not accepted by President Menezes, who reiterated his confidence in Minister Carvalho.
Given the chaotic situation in São Tomé and Príncipe, Nigerian President Obasanjo on Friday went on a quick visit to the nearby archipelago. During a three-hour stay, the Nigerian President met with President Menezes, Prime Minister Damião Vaz d'Almeida, a parliamentary commission on petroleum issues and representatives of the JDA.
President Obasanjo, who was visibly irritated over the necessity to go to São Tomé, had advised his colleagues against "politicking with purely technical matters." Other Nigerian politicians feared the JDA would lose its good reputation and indicated that economic stakeholders in São Tomé were jealous of the large Nigerian business involvement on the new blocks.
The Nigerian intervention nevertheless led to the rapid regrouping of the JDA, and reinstated São Toméan Minister Carvalho has already announced that the licences most probably will be awarded in a JDA meeting very soon. Nigeria gets 60 percent of the oil revenues from the JDZ, while São Tomé gets 40 percent of revenues.
13 comments:
Joe, your in the journalism business. Why do you think they used such a negative headline? And what do they mean by harmonized?
Joe do you know Felix? Does he have an agenda?
"Harmonized" mans they reached consensus, and that's a good thing. The first paragraph is misleading, as it suggests they had the power to announce the awards if they wanted to, which they do not. They have always needed the approval of their heads of state under the treaty. It's just that Felix is new to the job and probably isn't familiar with the treaty requirements, or got them explained to him by SwingingK. :)
The press release on the JDA website dated May 4th could probably be used in the same exact language to describe what just took place at this meeting.
I wonder if the language in the next press release will be any different?
I wonder if there will even be a JDA press release.
I would like to know if Obasanjo and de Menezes have been kept abreast of what agreements were reached in this latest JMC meeting.
You would think they would already know what changes have been made.
hopefully the sao tomeans are happy with the latest arrangements.
Joe - It says they failed to make awards not failed to come to an agreement (as you reported). Seems your part of a progressive negative distortion.
Right you are, 9:06. I am correcting that now. Yhanks.
It's too late for STP people to be happy with the latest arrangements, that will never happen. To be happy the whole deal would have to be redone from scrath with alot of major changes. However, if you said you hope STP people have come to an acceptable arrangement with the Nigerians that would be more accurate.
Well then I truly hope the STP people have come to an acceptable arrangement with the Nigerians and I hope that the oil found in the JDZ brings the poeple of Sao Tome great wealth.
And the sooner the drilling for oil begins the sooner this all can be realized.
MY GOD! Doesn't anyone realize that Joe Blog is Rick Majerus???
Anywayz...I'll be home all day to swingtrade awards or no awards!
where's monkeytrots? he must have done a bad job of negotiateing for Travado and got whupped by Offor!LMAO. You're fired!
monkey? do you mean mongo? or both?
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