President Fradique de Menezes has rejected Arlindo Carvalho's resignation, citing the pressing need for his knowledge of the awards process, his prominent role in the second licensing round for five blocks of the Nigeria-Sao Tome and Principe Joint Development Authority, and the need for someone to serve through the investigative process that is currently underway there.
The English-language Lusa story (below Homeport's post) says Carvalho quit because of ERHC Energy's deal, but in Lusa's earlier coverage of the resignation, ERHC was not mentioned in connection with it. According to a post from rancho of the Portuguese Lusa story translated into English (below Lusa's English story)), the original Portuguese story (very last, below) makes no mention of ERHC's role. It appears the agency is talking out both sides of its mouth.
Here is Homeport's latest:
Posted by: Homeport
In reply to: None Date:5/23/2005 4:26:55 PM
Post #of 2805
FYI, Portuguese Lusa agency reporting STP Pres Menezes rejected Oil Min Arlindo de Carvalho´s resignation. Agency makes nono mention of JMC meet in Abuja.
Lusa cites presidential communique issued this p.m. as saying Carvalho, who tendered resignation last week, should stay on 'cause:
- has "precious info" about awards process;
- is "co-author" of 2nd licensing round; and
- must await conclusion of ordered inquiry into the process.
News in Portguese - at www.lusa.pt -- but should move in English shortly on LusaNews at same address.
Bests,
Homeport
Update Now we have the English-language story:
23-05-2005 23:02:00.
Fonte LUSA.
Notícia SIR-7026009
Temas:
Sao Tome: Menezes rejects oil minister's resignation
Sao Tome, May 23 (Lusa) - President Fradique de Menezes of Sao Tome and Principe said Monday that he has refused to accept the resignation of the archipelago's natural resources minister, who quit last week amid allegations of irregularities in the award of offshore oil exploration rights.
In a communiqué, Menezes said he had rejected the resignation of Arlindo Carvalho, because the minister "has valuable information" on the award of the oil blocks.
Carvalho, who had cited in his resignation the previous government signing unfavorable accords with Nigerian-controlled oil firm ERHC, should stay in office, as he has vital knowledge and is the "co-author of the second offshore licensing round", said Menezes` statement.
Sao Tome's president added that Carvalho should also keep his portfolio until an official inquiry is concluded into allegations of wrongdoings by state officials in the allocation of the offshore blocks.
Allegations of irregularities in the awards process for exploration rights to five offshore blocks in the delayed 2004 licensing round emerged earlier this month.
In his resignation letter to Menezes last week, Carvalho said commitments entered into by earlier administrations were damaging the process to award the new exploration acreage in Sao Tome's Joint Development Zone with Nigeria.
The row over the process of deciding how to allocate the offshore blocs has already led to Menezes sacking his personal adviser on oil matters, Patrice Trovoada, within the last month.
Menezes has been forced to step down from the National Petroleum Council and one of his former advisers, Manuel Rita, resigned after it was revealed he owned shares in ERHC.
The president's decision to block Carvalho's resignation comes three days after the visit to Sao Tome of Nigerian President Olusengu Obasanjo for talks on the stalled allocation process.
RCN/CJB.
Lusa
Note also that in this translation of the Lusa story from rancho, a trusted poster, there is also no mention of ERHC:
Rough translation
The President of Sao Tome and Principe, Fradique de Menezes, rejected today the resignation of Natural Resources, Arlindo Carvalho, because he is the "holder of precious information" in the licensing of the oil blocks.
The rejection of his resignation of the Oil Minister was made public this afternoon, in a communique distributed by the Sao Tome leader via the state press agency.
The Minister of Natural Resources, Arlindo Carvalho, tendered his resignation a week ago after allegedly feeling pressured in regards to the conclusion of the process to award five oil blocks in the joint exploration zone with Nigeria.
According to the presidential communique, "the minister of Natural Resources, Arlindo Carvalho should remain in his functions (stay at his post) because he holds precious (vital) information and is the co-author of the entire process related to the second licensing round of the oil blocks."
Also in the document, President Menezes stated that Carvalho should not leave the Ministry of Oil until the conclusion of the inquiry of alleged irregularities denounced in the process of the award of blocks.
The denounced irregularities in the awards process were made public three weeks ago in the capital of Sao Tome following press allegations of favoritism to oil companies, in which some Sao Tome leaders are stock holders and involves individuals close to President Menezes.
The decision of President Menezes to refuse the resignation of the Oil Minister occurs three days after his Nigerian counterpart, Olesegun Obasanjo, arrived in the Sao Tomean capital to discuss/debate questions related to the award of the oil blocks in the JDZ.
Here is the Portuguese-language story rancho translated:
São Tomé e Príncipe: PR recusou pedido de demissão de ministro dos Petróleos
São Tomé, 23 Mai (Lusa) - O Presidente de São Tomé e Príncipe, Fradique de Menezes recusou hoje o pedido de demissão do ministro dos Recursos Naturais, Arlindo de Carvalho, por ser "detentor de informações preciosas" na adjudicação de blocos de petróleo.
A rejeição do pedido de demissão do titular da pasta dos Petróleos foi tornada pública esta tarde, num comunicado do Chefe de Estado são-tomense distribuído aos órgãos de comunicação social.
O ministro dos Recursos Naturais de São Tomé e Príncipe, Arlindo de Carvalho apresentou há sete dias o seu pedido de demissão do cargo por alegadamente sentir-se pressionado na condução do processo que visa a adjudicação de cinco blocos de petróleo de uma zona de exploração conjunta com a Nigéria.
Segundo o comunicado presidencial, "o ministro dos Recursos Naturais, Arlindo de Carvalho deverá manter-se em funções (...) por ser detentor de informações preciosas e co-autor de todo processo dessa segunda licitação de blocos de petróleo...".
Ainda no documento, o Presidente Fradique de Menezes argumentou que Arlindo de Carvalho não deve deixar o ministério dos Petróleo antes de se concluir um inquérito mandado instaurar face as alegadas irregularidades denunciadas no âmbito deste processo de adjudicação de blocos.
A denuncia de irregularidades na adjudicação de blocos foi tornada publico há três semanas na capital de São Tomé através imprensa por alegado favoritismo de petrolíferas, nas quais alguns dirigentes são-tomenses são accionistas, envolvendo, figuras próximas do Presidente da República, Fradique de Menezes.
A decisão de Fradique de Menezes de recusar o pedido de demissão do ministro dos Petróleo acontece três dias depois do seu homologo nigeriano Olusengu Obasanjo ter se deslocado a capital são- tomense, onde debateram questões relativas a adjudicação de blocos desta zona de exploração conjunta.
Assinado em Fevereiro de 2001, o tratado de exploração conjunta entre os dois Países estabelece 60 por cento de receitas para Nigéria e 40 para São Tomé e Príncipe.
http://noticias.uol.com.br/ultnot/lusa
/2005/05/23/ult611u62915.jhtm
So what's going on with that? Will Lusa retract the English version?
14 comments:
Wouldn't need him if awards weren't forth coming... would you..,?
If I'm not mistaken, at this late trans-Atlantic hour, Carvalho is a member of ousted presidential oil adviser Patrice - ELE - Trovoada's ADI junior government party.
And that should add another dimension to our discussion.
Boa Noite!
Yes you would. You would need him to provide his insight so you can redo everything again and not make the same mistakes twice.
Point is, dont read too much into like you delirious longs always do.
Try to see both sides of the story for a change instead of the "blue skies" mentality.
This part concerns me. This makes it seem as if we are now going to have to wait for an "official Inquiry into the awards process" before anything can be done. It seems to me the Nigerians who give us the upates have a different view of things then the Sao Tomeans IMO.
"Sao Tomes President added that Carvalho should also keep his portfolio until an official inquiry is concluded into allegations of wrongdoings by state officials in the allocation of the offshore blocks."
Is the JMC meeting tomorrow and Wednesday or not? If so, does this mean Carvalho will be attending meeting also?
I would hope Menenez wouldn't continue his "rule by appeasement policy" and hold up awards further to complete this offical inquiry.
The alleagations of wrong doing was from the opposition party. The goal of the opposition party is to stall the awards process.
You can not hold up the entire award process just because the opposition is throwing around accusations with the sole intentions of delaying awards.
As a leader you have to recognize their intentions and not allow them to have their way.
It's de Menezes!!
Joe:
Long time lurker - first time poster. I appreciate your blog and come here daily for concise information. Between Ihub and RB - can't get through the drivle to find the meat and potatoes - so to speak. Mostly anything they post about of any consequenses - you have posted first anyway.
You obviously have a lot at stake - I have no where near your amount of shares, but I bought in at much higher levels and for me - it is a lot of money.
So my blunt question to you is this - Do you think too much damage has been done to finish this thing and make award announcements? What do you think the chances are that this round will be scratched and re-done? What is the probability that ERHE could lose it's position? Is there any real hope that a positive outcome can occur here in the next few weeks?
I realize that you do not have a crystal ball - but you are probably up on all the issues more then anyone else - So I would really like to hear your candid thoughts on my above questions.
Thanks and good luck to you! You have done a great job with providing information to a very fluid and volatile situation.
All the best
Stephen
If de Menezes does allow the opposition party to stall this thing then I would have to conclude that de Menzes is in bed with Exxon and has no plans to sign off on Round 2 awards.
Maybe he wants to see ERHC fail and feels he can do them harm by stalling them out in the JDZ.
He could also do the same in the EEZ by allowing the Sao Tome government to take their sweet time in choosing the third block thus delaying ERHC's ability to make the 4th and 5th selections.
This is all wild speculation on my part but I will begin to believe it if things are allowed to drag out much longer.
Stephen, I'll try to answer briefly. Your questions:
Do you think too much damage has been done to finish this thing and make award announcements?
No, I don't. I think awards will come this week or on Monday or Tuesday (esp. insofar as traders go).
What do you think the chances are that this round will be scratched and re-done?
I think they're minimal.
What is the probability that ERHE could lose its position?
Probably 1 in 25.
Is there any real hope that a positive outcome can occur here in the next few weeks?
Absolutely. And I think it will happen sooner than that.
Joe
whats your take on the Carvalho reversal, thanks David D
The way I see it is Carvalho is an admitted ERHC shareholder. When STP officials finally figured out ERHC's deal and what their free blocks would cost the country, they came out swinging at anything and everything to do with ERHC, including FDM and Carvalho.
It took some much-overdue education to show that our rights and our bids were separate and apart, but Carvalho was made to take the fall - he had to be dirty. How could he argue in favor of our bids, when he was a shareholder to a company that in the eyes of many, was robbing STP blind. No wonder he resigned - how could he effectively make his pitch???
Fast-forward 2 weeks. Most now understand our rights and that the rights are going to be enforced regardless of the outcome of the awards. Contrary to what Vanguard states, our free blocks will cost STP even more, if the signature bonus is higher, i.e. APC.
It seems to me that the powers that be now realize they cannot push us aside, and since the world bank has assured STP that ERHC and partners truly offer the best package, they can now look at Carvalho with a degree of respect. He's no longer viewed as someone trying to cheat the country, but someone that has had their best interests at heart from day one. Hence, FDM asked him to stay, that he is needed for the process to move forward. Whether he accpets or not we don't know officially, but I would assume FDM knew the answer before officially asking him to stay.
As for his portfolio, now that the cloud has been lifted, and they need his services, his ownership in ERHC is a non-issue.
Remember, it is not a violation of the treaty to have an interest in a party to the process. It is only a violation if that interest is not made known to the JMC. If the JMC has full knowledge and does not deem this to be a conflict, the individual can participate without jeopardizing the process.
SH70
Wouldn't make to much out of differences between Port/Eng versions of Lusa's stris, Joe. Have noted before, they seem to be done by different depts with "different audiences" in mind.
LusaNews often has wider bkground, despite generally being a tighter piece.
Bests,
Carvalho does not hold shares in ERHC. That was Mateus Rita, who stood down from the JMC and the National Oil Council. Carvalho is a member of Patrice Trovoada's ADI. Carvalho resigned earlier this month, citing concerns over the process. Patrice Trovoada had been fired as oil adviser to President Menezes a few days earlier. Some have suggested that Trovoada told Carvalho to resign as a device to delay the whole process. Trovoada has led the opposition to the JMC recommendations as agreed in Abuja last month, partly because he was excluded from the meeting and partly because it failed to give what he regarded as appropriate equity to ONGC/Equator in blocks 2 and 4, and partly because it failed to give operating rights in block 4 Anadarko. Opponents have suggested Trovoada is linked in some way to Equator and Anadarko, but have produced no evidence to support such allegations. If Carvalho is to remain as oil minister, even in a temporary capacity, it may imply either that Trovoada has been reconciled to the awards, or that Carvalho has fallen out with Trovoada. But the real issue remains the attitude of the MLSTP, which is the largest party in parliament in Sao Tome.
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