The priorities, of course, were whether the Joint Development Authority should accept the highest bidder or the best "technical" bid, meaning the one most likely to acomplish a quick return of oil royalties to the two countries, the source told Lusa, as reported here several weeks ago in the face of scathing criticism.
In another news report, Sao Tome Natural Resources minister Arlindo de Carvalho told a radio station that arrangements had been made for a quick payment of the $49 million, but the oil minister added that the dispute over the awards remains on the table.
The meeting ended without agreement on that point, according to the source that talked to Lusa - contradicting the communique issued by the Joint Ministerial Council Secretariat Friday afternoon - and now the two heads of state, President Olusegun Obasanjo of Nigeria and President Fradique de Menezes of Portugal, will probably resolve it within 15 days, said the source said, who demanded anonymity.
That may happen, but history doesn't indicate it will. If it does, it now appears the reason may be the demand by Nigeria that Sao Tome pay its share of $15 million in costs run up by the Joint Development Authority, which must be paid for out of signature bonus fees paid to the two countries. A $49 million bonus fee awaits Sao Tome in a Nigerian bank, Nigerian deputy foreign Minister Abubakar Tanko said last week, if and when they do sign the awards document.
However, no money would go to Sao Tome from that sum if it has to pay its share of costs and also repay a recent $44 million loan from Nigeria meant to tide them through the delays caused by ExxonMobil's lengthy cnsideration of its rights in the JDZ.
Here is my translation of the original story in Portuguese:
27/05/2005 - 3:15pm
São Tomé: Nigéria e São Tomé em desacordo sobre venda de blocos de petróleo
Sao Tome and Nigeria in Disagreement Over Sale Of Oil Blocks
São Tomé, 27 Mai (Lusa) -- A Nigéria e São Tomé e Príncipe discordam sobre o processo de adjudicação de blocos de petróleo de uma zona de exploração conjunta entre os dois países, revelou hoje à Lusa fonte oficial.
Nigeria and Sao Tome are in diagreement over the the process of awarding blocks of oil in a joint exploration zone between the two countries, an official source revealed to Lusa today.
Segundo uma fonte do conselho petrolífero do arquipélago que pediu anonimato, a reunião iniciada terça-feira em Abuja, capital da Nigéria, entre as autoridades do petróleo dos dois países, foi infrutífera, por falta de entendimento entre as partes sobre as propostas para a licitação de cinco blocos da zona de comum acordo de exploração.
According to the source on the national petroleum council who demanded anonymity, a meeting that began Tuesday in Abuja, the Nigeran capital, between the authorites on petroleum from both countries, was fruitless, as it failed to reach an understanding between the parties on bids in the auction of five blocks of their agreed-upon exploration zone.
A mesma fonte sublinhou que não tendo o conselho ministerial de exploração conjunto resolvido a questão de desentendimento entre as partes, a decisão será, provavelmente, tomada dentro de quinze dias pelos chefes de Estado, Olusengu Obasanjo da Nigéria e Fradique de Menezes de São Tomé e Príncipe.
The same source stressed that while the Joint Ministerial Council had not resolved the questions in disagreement between the countries, there will probably be a decision within fifteen days by the heads of state, Olusengu Obasanjo of Nigeria and Fradique de Menezes of Sao Tome and Principe.
A fonte acrescentou que a discórdia prende-se com o critério de selecção de empresas concorrentes aos blocos, com São Tomé e Príncipe, de um lado, a defender a proposta monetária apresentada pelas petrolíferas, contrariando a posição da Nigéria que dá prioridade ao tempo estabelecido para produção do petróleo.
The source added that the discord was fanned by the criteria for selection of companies competing for the blocks, with Sao Tome and Principem on one side preferring the monetary bids offered for the oil, and with Nigeria in a contrary position saying that the priority should be based on the time needed to produce the oil.
A mesma fonte referiu ainda que, como forma de pressionar a parte são-tomense a ceder, a Nigéria teria apresentado um ultimato a São Tomé e Príncipe para pagar uma divida de cerca de 15 milhões de dólares resultante dos serviços da autoridade conjunta de exploração entre os dois Países.
The same source revealed that as a form of pressure on the Sao Tome side ro yield, Nigeria had presented to Sao Tome an ultimatum to pay its share of nearly $15 million resulting from the serviceces of the Joint Development Authority of the two countries.
A delegação ministerial de São Tomé e Príncipe, que regressou esta tarde desta falhada missão petrolífera em Abuja, não prestou qualquer informação à imprensa, relegando os jornalistas para uma posterior comunicação ao país.
The ministerial delegation that returned to Sao Tome and Principe this afternoon from the failed oil mission in Abuja would not lend any insights to the press, directing journalists to a later national address.
Além do ministro dos Recursos Naturais, Arlindo de Carvalho, integraram a delegação são-tomense, o ministro dos Negócios Estrangeiros, Ovídio Pequeno, o ministro da Defesa, Óscar Sousa, o ministro de Plano e Finanças, Adelino Castelo David, e um assessor do Presidente da República para o sector petrolífero.
Beyond the minister of the Natural Resources, Arlindo de Carvalho, included in the Sao Tome delegation were Minister of Foreign Commerce Ovidio Pequeno, Minister of Defense Oscar Sousa, the Minister of Planning and Finance Adelineo Castelo David, and the advisor to the President of the Republic on the petroleum sector.
Esta reunião sem êxito que aconteceu quatro dias depois do Presidente da Nigéria, Olusengu Obasanjo, ter efectuado uma visita relâmpago a São Tomé e Príncipe, surgiu na sequência de um pedido da parte são-tomense no sentido de se rever o processo de adjudicação de blocos da zona de sobreposição.
The unsuccessful meeting happened four days after Nigerian President Olusegun Obasanjo had put in motion a stormy meeting in Sao Tome and Principe at the request of the Sao Tomese, who felt strongly that the award of the of blocks in the zone had to be reversed.
Há quase duas semanas, as autoridades de São Tomé e Príncipe, sobretudo, a Assembleia Nacional, exortaram o Governo de Damião Vaz Almeida a rever as propostas do documento antes da conclusão do processo de adjudicação de blocos face à denúncia de irregularidades.
It's been two weeks since authorities on Sao Tome and Principe, especially the National Assembly, implored the government of Prime Minister Damiao Vas d'Almeida to reject the bid document before completing the process of awarding the blocks in the facce of criticism of irregularities.
A denúncia de irregularidades na adjudicação de blocos foi tornada pública há três semanas na capital de São Tomé através da imprensa por alegado favoritismo de petrolíferas, nas quais, alguns dirigentes são-tomenses são accionistas, envolvendo figuras próximas do Presidente da República, Fradique de Menezes.
The criticism of irregularities in the award of the oil blocks has generated a public tempest in the press for three weeks in the Sao Tome capital over allegations of favoritis, springing from t some Sao Tomese directors and shareholdders involved who are close to the President of the Republic, Fradique de Menezes.
No âmbito da polémica instalada em São Tomé, o Movimento Libertação de São Tomé e Príncipe-Partido Social-democrata (MLSTP-PSD) no governo acusou o Presidente Fradique de Menezes de estar a violar a lei-quadro das receitas de petróleo em benefício próprio.
In the ambience of controversy prevailing in Sao Tome, the ruling Movement for the Liberation of Sao Tome and Princiope and the Social Democratic Party accused President Fradique de Menezes of violating the law by having benefitted himself from oil revenues.
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.
Signed in February of 2001, the joint exploration treaty between the two countries provides that 60 percent of the revenues go to Nigeria and 40 percent to Sao Tome and Principe.
RCN.
36 comments:
Joe thank you for providing that information. IUt was very informative.
Once again you are ahead of the curve and your detractors are two days behind the story wondering what hit them....
What a bunch of buffoons...
They are still trying to figure out if there was a consensus or not
ROTFLMAO
Hey guys we figured that out yesterday.
Where were you?
Oh I know, whining and complaining about Joe
ROTFLMAO
Hey guys in other breaking news the US had the first astraunot land on the moon and Reagan told Gorbachev to "tear down that wall".
DUH
Joe, I think Carvhalo's comments carry more weight and IMHO they were failry positive for our side in the sense that he knows time is of the essence.
Sao Tome knows they need to come to a quick conclusion or the Nigerians will come down on them hard by withholding the money.
An anonymous poster on your board also stated yesterday that this would indeed happen so he seems to have some credibility.
Ad he went on to say that some blocks will be awarded even if Sao Tome doesnt sign on. And that Nigeria and Sao Tome would meet in Paris this summer but that that would not impede the progress of the oil companies who were awarded percentages.
He said the US would make assurances to those companies that their progress would not be impeded.
So to me it sounds better than yesterday afternoon.
He also said both sides did agree that they need to award blocks as soon as possible.
Mark,
Treaty states that a dispute within the JMC must be resolved within 12 mos by the JMC. If not, then it goes to the heads of state-appears to be where we are. The heads of state may have up to 6 mos? -not sure on that,legaleze not my fortay.
I suspect things will move much faster than the max timelines, took very little time for the JMC to quickly turn matters over to the heads of state. Outside pressures bearing down hard. Won't be long before the bidders start getting nervous. This will be resolved in a fortnight-lol.
dm
dm
It is and will always be about the MONEY..This is why the Western Culture will always be superior to the African Culture..We know how to make a deal...With hold the Money they have And grind thme down...Who gets hurt the little people of the country ( as always)...Good work Joe..
Casico
Fun and games. It does boggle the mind that the JMC Secretariat could put out a communique stating that a "harmonised position" had been reached when the Sao Tomean half of the JMC was clearly not in harmony. And the JDA has evidently been telling less than the truth when saying that the debate over signature bonuses vs. technical competence was resolved months ago. The JDA and JMC both have lost a lot of credibility in their statements to interested parties and may have even opened themselves up to lawsuits for giving information that was misleading, to say the least, and quite possibly financially injurious to stakeholders, depending on what now transpires. I do still think this issue will get resolved, finally--by Obasanjo and Menezes if necessary. Sao Tome is the poorest African nation (quite a distinction) and getting poorer all the time; it seems headed for outright financial collapse, thanks to a potentially lethal combination of ignorance, arrogance, and corruption. If U.S. intelligence is wondering if Nigeria will be around in 15 years, I'm wondering if Sao Tome will still be around, in any recognizable form, in a couple of years. STP desperately needs debt relief for its $300 million in outstanding international debt. (To put that in perspective, that's over 150% of the country's entire annual GDP.) But the IMF is not likely to grant any significant debt relief if STP queers the JDZ deal and goes against the World Bank's recommendations, which makes Almeida's recent comments all the more flabbergastingly suicidal. Then, too, as others have pointed out, STP owes Nigeria $44 million, plus $15 million in ongoing JDA expenses, if Nigeria really wants to stick it to STP--and the way things are going, Nigeria will. If that happens, then far from receiving any of the $49 million in signature bonus money from JDZ block 1, STP will in fact still be in the hole $10 million (plus its $300 million international debt). Implosion would likely soon follow.
So, assuming that the Sao Tomeans still have any instinct for survival, look for Menezes to figure a way to sign some kind of deal. If this licensing round collapses, all remaining credibility, such as it is, will be lost for the JDA, JMC, Nigeria, and STP in the JDZ, and there will be no JDZ development for probably years to come. It may have already come to the point where tempers are overriding reason. Everyone may need to cool down and compromise somewhat in order to reach closure on the JDZ licensing, before irremediable damage is done.
OK, so the article says "The priorities, of course, were whether the Joint Development Authority should accept the highest bidder or the best "technical" bid, meaning the one most likely to acomplish a quick return of oil royalties to the two countries". Can anyone speak to the two obvious questions this statement leaves open: (1) Which country prefers "high bid" and which one prefers "quick royalties"; and (2) Which bidders represent "high bids", and which bidders represent "quick royalties"? Thanks for any insight.
Artk2004,
If that is true it's absolutely ludicrous! But definitely par for the course...
WHY would they have to match a $90 million bid if their offer is far better technically? Why not just bid $90.1 million and offer to fast track one well "when they get around to it"?
It's incredibly unfair and short-sighted for them to demand such a high signature bonus when they are offering to work at no less than three times the speed of Anadarko.
Thoughts anyone?? I feel like I'm taking crazy pills
-Ken
Is it true that STP owes Nigeria $59 million (= $44 million + $15 million)?
Thus, even after $49 million of block 1 money they are immediately short of $10 million (= $59 million - $49 million)?
If Noble wins operatorship they pay $57 million, NOT $90 million.
That wouldnt make any sense because then you can have ficticious bids placed just to receive that amount of money....Also wondering where this stock will open on Tuesday....any ideas? Here is hoping this gets resolved soon but as many have stated....they lost my credibilty in the process a long time ago..........
sao tome will not pay 5 million $ to fast track B.4 so now they lose several 100 million $ ..
i would imagine that they will soon be removed by force. nigeria will not forgive, they are soon bagged and tagged.
Art, how much should the block 2 winner pay?
AWARSD TUESDAY!!!!
Hip Hip Hurray !
Yeah, and the tools mongo and monkey together!
Article 49.1 of the Treaty says the heads of state have 12 months to resolve a dispute referred to them by the JMC, or such additional time as they agree.
Art,
My understandng is if Noble wins operatorship they would have to pay the $90 million that Anadarko bid and not the $50 million they bid.
In a given block the operator that is chosen pays the highest "legitimate" bid that was offered.
Conoil's bid was not considered legtitimate.
That is my understanding of it.
So this whole thing is even more ridiculous when you consider that Noble would have to pay the higher bid by Anadarko anyway.
It tells you what is really behind Sao Tome's intentions.
Patrice Trovado.
someone should ask mongo about patrice trovaodo and eel.......
Figure it out people......
Why would these monkeys screw up so badly, there must be a better reason than the signature bonus, something bigger.like xom pulling the strings. i hope we will see a coup d'etat and all these basdurds get killed.
Your answer is in the above two posts. Barry Morgan also stated Patrice Trovaodo was the hardest to convince so figure it out.....
The true power brokers in Sao Tome are the Trovaodo's. That is why the delegates from Sao Tome are putting up such a fuss even though the World Bank doesnt agree with them.
Because that is who they are loyal to.
The Sao Toamans are not playing fair.
Their skull must be bullet proof.
ever let mongo off the hook. whenever he shows up ask him his opinion about patrice trovaodo / eel.
why do you think he spends so much time bashing erhc and nobody else.
Mongo and monkey are Trovoada's tools.
This comes down to Obasanjo vs. Patrice Travoado.
Which side will Frederique fall on?
Everything points to Travaodo's side.
Apparently de Menezes is ungrateful to Obasanjo despite the fact that Obasanjo saved his ass during the attempted coup.
You would think that would count for sometthing but apparently not.
In fact de Menezes has double crossed the Nigerians. He has made it seem as if he was operating in good faith to get these awards done when in fact he isnt.
He has wasted the Nigerians, precious time and resources trying who are trying to get this done and he continues to embarass them on the world stage.
My only hope is that Obasanjo finally says enough is enough and calls Menezes bluff and distributes awards without the Sao tomeans.
And that is what I think will happen.
10:39 AM You are probably right.
JDA should meet again and change the percentages. EEL 0%.
Art,
Just because de Menezez fired Trovado doesnt mean that he is not in his hip pocket.
Things are sometimes done for outward appearances.
Menezes is Trovado's puppet. Plain and simple.
Trovado is acting President even though Menezes is officially in charge.
I guarantee you they cut some sort of deal when the Trovado's brought Menezes into the potision of President.
And Mongo is a tool of Trovaodo and EEL. IMO.
Thats why he spends day after day bashing ERHC.
You can tell who the slimy ones are in this whole JDZ mess. If you cant then you havent opened your eyes.
Walldog,
If Trovaodo was backing ERHC aw well then why has he pushed so hard for Anadarko to win operatorship over ERHC.
Thats why I completely disagree with you on your take.
IMHO Trovaodo is now directly against ERHC.
Does Nigeria have an eqivalent to the American CIA?
If they do I know what I would do.
Post of the week from Friday at 12:34 PM, Good call.
Mike,
I have said all that I have to say. You are getting irritated because you probably believe the same thing but are afraid to admit it.
I would be absolutely shocked if de Menezes signs this weekend or anytime soon for that matter.
My prediction is that he will say that all members of the Sao Tome delegations in the JMC did NOT come to a concensus si he has no other option but to throw it back into parliament.
How convenient Mr. de menezes. Spare us the BS.
By Anonymous, at 12:34 PM
Art, my understanding is that ERHC would have to pay its share of the highest legitimate bid. But I notice the newspapers have not been saying this.
In the long post at 2:01, the poster says that STP would have to pay the $15 million' the first thing I read about it gave me that impression, too, and I think I rpeated it in print once. However, the article from Lusa on May 27 indicated that they would only have to pay half that expense, or perhaps 40 percent; and, since they do
owe Nigeria $44 million, they would be closer to $2.5 million in debt after the awards and signature bonus fee for Block 1 is paid. I am curious to see whether the money from Block 1 will be forthcoming in any form; a Radio Africa story apparently said Carvalho was promising it would be made in the very near term, the next couple of days. I have my doubts, but if this payment does emerge, I think we could well see movement on Sao Tome's aprt towards signing the awards document.
Joe Carvalho also stated that if the Sao Tomeans dont make a quick decision teh they are putting the reputation of the JDZ at stake and as a result the $10 million they owe will be demanded immediately and they will not recieve the $49 Block 1.
So he said they would recieve the mney with the caveat that they actually sign off on awards soon.
Joe - too bad you don't have parental control filter on your site:
Joe - too bad your site doesn't have a parental control filter on your site. It would filter out garbage like this:
"Article 49.1 of the Treaty says the heads of state have 12 YEARS.
NOW GO JERK OFF IDIOT.
By Anonymous, at 9:57 AM"
Article 49.1(a) If the Heads of State agree in writing that a dispute referred to them under paragraph 48 (it's talking about a dispute referred to them by the JMC) concerns a matter of policy or administration and the dispute has not been resolved by the Heads of State within 12 MONTHS of its referral to them, or such additional time as they agree....
(it goes on the say that either state party can request the dispute go to arbitration).
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