Thursday, May 19, 2005

Vitrina, Lusa Suggest Obasanjo Visit Is Fence-Mending Only

There is a new article on Sao Tome's Vitrina Website that puts a different spin on Friday's visit of President Olusegun Obasanjo to Sao Tome and Principe, where most expect to watch President Fradique de Menezes sign awards and carry away a $49 million check as Sao Tome's share of Block 1's $123 million signature bonus fee.

Lusa has also issued an English language version if its story on the meeting.

The Vitrina spin is that the visit is purely a business meeting to discuss the awards, not a ceremonial event. We believe Vitrina is wrong, and we think most news organizations have reported otherwise on good information.

Here is the late-breaking Lusa report on the Obasanjo-de Menezes meeting:

19-05-2005 14:45:00.
Fonte LUSA.
Notícia SIR-7014351
Temas:


Sao Tome: Nigeria's Obasanjo expected in Sao Tome Friday - presidential aide

Sao Tome, May 19 (Lusa)
- Nigerian President Olusegun Obasanjo is expected in Sao Tome and Principe Friday for talks with his island counterpart, Fradique de Menezes, on the stalled awarding of five oil exploration blocks in the two countries' offshore Joint Development Zone (JDZ), a Sao Tome presidential aide confirmed Thursday.

De Menezes' aide, asking to remain unidentified, confirmed to Lusa rumors Obasanjo was heading to Sao Tome to discuss the delayed announcement of awards.

The official declined to elaborate further on Friday's agenda, but said the two presidents would discuss their bilateral "oil dossier" that has been bogged down by political gridlock in Sao Tome.

Confirmation of Obasanjo's visit came less than 24 hours after Nigeria's ambassador to the islands denied accusations by Sao Tome and Principe's leaders that Abuja was bullying the archipelago in the bilateral process of awarding JDZ oil exploration blocks.

Ambassador Saidu Pindar also used a Wednesday news conference to blame the archipelago's authorities for hobbling the transfer of USD 123 Mn from an earlier signature bonus award.

Pindar, dismissing charges made last week by the islands' president, de Menezes, said that decisions on JDZ block awards were "taken by consensus" in the bilateral Joint Development Authority (JDA) and the senior Joint Ministerial Council (JMC).

The JMC reportedly approved the awarding of five shared offshore blocks at a late April meeting in Abuja, but the announcement has been delayed by political infighting in Sao Tome.

Under fire over the awards from the islands' two governing parties, de Menezes defended his oversight of the process by saying Sao Tome had "mortgaged" its decision-making prerogatives to Nigeria in "disastrous accords" agreed by a preceding Sao Tome administration.

De Menezes, whose partisan backers sit on opposition benches in the archipelago's parliament, resigned last week as chairman of the National Petroleum Council, saying he wanted to "avoid confusion".

At the news conference Wednesday, Pindar warned the islands' governing coalition that its virulent denunciations of the awards process risked jeopardizing bilateral relations and cooperation between the region's major power, Nigeria, and their micro-state.

Questioned on the fate of the USD 123 Mn signature bonus paid by ChevronTexaco for the only JDZ block awarded so far, the ambassador said it lay in a Nigerian bank awaiting the signatures of Sao Tome authorities in order to be transferred.

"We are waiting on Sao Tome and Principe's authorities to distribute the money", he said, indicating that the lacking signatures referred to the JMC awards decision on five blocks taken in Abuja at the end of April.

Nigeria "has already signed the document", the ambassador said.

Under a bilateral treaty signed in 2001, revenues from the JDZ are shared 60:40 in Abuja's favor.

RCN/SAS.

Lusa

Here is the Vitrina report, followed by a machine translation that is mostly nonsensical:

Ano I I I Edição n.º 803 Sexta-feira, 20 de Maio de 2005

Olusengo Obasanjo faz visita S. Tomé 24 horas depois do embaixador da Nigéria advertir os dois partidos da coligação governamental de que podem pôr em causa as relações entre os dois países
by Manuel Barros


20.05.2005-J.Vitrina-(S. Tomé) -- O presidente nigeriano Olusengo Obasanjo chega na tarde desta sexta-feira a S. Tomé para uma visita de algumas horas. Obasanjo tem encontro marcado apenas com o presidente santomense Fradique de Menezes e o seu regresso está previsto para a noite. A deslocação de Obasanjo a S. Tomé surge 24 horas depois do embaixador da Nigéria em S. Tomé em Príncipe ter advertido os partidos MLSTP/PSD e Acção Democrática Independente que formam a actual coligação governamental de que podem pôr em causa as relações entre os dois países. Saidu Shettima Pindar diz que a controversa interna em S. Tomé no dossier petróleo não pode servir de protesto para os responsáveis destes dois partidos porem em causa o bom nome da Nigéria e o seu investimento em S. Tomé e Príncipe.

Saidu Pindar fazia referência ao comunicado do MLSTP/PSD de 17 de maio último e as declarações do líder do ADI que na sua opinião constituem erros e comentários graves e muito “pouco lisonjeiros” que põem em causa um dos principais bancos nigerianos com enormes investimentos em S. Tomé.

Numa extensa declaração de imprensa seguido de respostas aos jornalistas o diplomata nigeriano acusa o MLSTP de faltar com a verdade relativamente aos bónus de assinatura do bloco 1, diz que os 123 milhões de dólares deste bloco já foram depositados no banco nigeriano denominado Hallmark Bank Plc e que o principal bloqueio para o desbloqueamento desta verba está sendo colocado actualmente por S. Tomé e Príncipe.

O comunicado do MLSTP de 17 Maio considera este banco como uma instituição bancaria de segunda classe. Mas Saidu Pindar recorda que a decisão de depositar os 123 milhões de dólares neste banco saiu de uma reunião do Consenso Ministerial Conjunto realizado em 2003 em que estiveram presentes os ministros santomense do planeamento e finanças, Eugénio Soares e da agricultura de desenvolvimento rural, Jorge Amado bem como o ex conselheiro do presidente da republica para o petróleo, Patrice Trovoada.

Entretanto, hoje na plenária da Assembleia Nacional de interpelação do governo o ex- ministro da agricultura reagiu dizendo que em 2003 ainda não existia 123 milhões de dólares, pelo que não pode ser verdade as informações dadas a conhecer pelo embaixador da Nigéria, que também reagindo as declarações do presidente da republica segundo as quais S. Tomé e Príncipe não tem voz nas discussões sobre o dossier petróleo, disse que todas as decisões são tomadas por consenso.

Here is a machine translation, which we will try to replace with a real one this evening:

>b>***Olusengo Obasanjo makes visit S. Tomé 24 hours after the ambassador of the Nigéria warning the two parties of coalition the governmental one of that they can put in cause the relations between the two countries

20.05.2005-J.Vitrina-(S. Tomé) -- The president Nigerian Olusengo Obasanjo arrives in the afternoon of this friday the S. Tomé for one visits of some hours. Obasanjo has meeting marked only with santomense president Fradique de Menezes and its return is foreseen for the night. The displacement of Obasanjo the S. Tomé appears 24 hours after the ambassador of the Nigéria in S. Tomé in Prince to have warned the parties MLSTP/PSD and Independent Democratic Share that form current coalition the governmental one of that they can put in cause the relations between the two countries. Saidu Shettima Pindar says that controversa internal in S. Tomé in dossier oil cannot serve of protest for responsible of these the two parties to put in cause the good name of the Nigéria and its investment in S. Tomé and Príncipe.

Saidu Pindar make reference to reference the official notice of the MLSTP/PSD of the 17 of last May e declarations of the leader of the ADI that in its opinion constitutes serious errors and lisonjeiros commentaries very and "little" that they put in cause one of the main banks Nigerians with enormous investments in S. Tomé.

In an extensive declaration of the press followed of answers to the journalists the diplomat Nigerian accuses the MLSTP to lack with the truth bónus of signature of block 1 relatively, says that the 123 million dollar of this block already had been deposited in the bank called Nigerian Hallmark Bank Plc and that the main blockade for the desbloqueamento of this mount of money is being currently placed for S. Tomé and Príncipe.

The official notice of the 17 MLSTP of May considers this bank as an institution would bank of second classroom. But Saidu Pindar remembers that the decision to deposit the 123 million dollar in this bank left a meeting of the carried through Joint Ministerial Consensus in 2003 where the ministers santomense of the planning and finances had been gifts, Eugénio Soares and of the agriculture of agricultural development, Jorge Loved as well as the former council member of the president of the republica for the oil, Patrice Thunderstorm.

However, today in plenária of Assembleia National of interpellation of government former minister of agriculture reacted saying that in 2003 still not dollar existed 123 million, for that cannot be truth the given information to know for the ambassador of the Nigéria, that also reacting the declarations of president of the republica according to which S. Tomé and Príncipe does not have voice in the quarrels on dossier oil, said that all the decisions are taken by consensus.

43 comments:

Anonymous said...

Joe what makes you think Vitrina is wrong? I think their read on the situation makes more sense then awards tomorrow.

I just dont see awards happening yet. Whatever happened to the parliament meeting that was supposed to have taken place yesterday? Did they decide anything or even have the meeting?

What leads you to believe awards will be tomorrow?

Anonymous said...

more bad news just what i would expect, they cant agree, so where will the pps go now. this stock always end up at 30 cent after awards.

good luck

Anonymous said...

anonymous 5:09 PM

You are very disingenuous.

Nice attempt at trying to drive the share price down.

Your attempts are laughable at best and criminal at worst.

Watch yourself.

Anonymous said...

History will repeat itself, 30 cent is most likely, imho , and im sure joe will agree once he has sold hes shares.


good luck

Anonymous said...

Joe what makes you believe the JDA is correct this particular time?

How many times have they said awards will occur on a given day or week and then they dont?

The JDA would have been better off to have never given any dates when people call. Why they would have Sam Dimka, or the Secretary of the JDA pick up the phone and say awards will be on such and such a day is beyond me.

It only damages their credibility. They should have just said no comment.

Anonymous said...

Joe:
Forget the subscription idea, you need an IQ test for posting here. Anonymous is loving having this forum, and their grasp of English suggests they are not stateside, or they are quite inarticulate.

Anonymous said...

And to those of you who blamed Exxon for everything think again. They have been out of the process for two months now and things havent run any more smoothly.

Anonymous said...

yeah "50 cent"

and sold "hes" shares

Sounds like spanish/portugeese to me. As if the person were from Sao Tome.

Anonymous said...

faith has been shattered, Dishonesty and deceit in areas critical to the public interest, have been the hallmark of sao tome government. it is pure fantasy to think awards will happen this time,


good luck Colin

Anonymous said...

If awards are held up until there is universal belief in the honesty and trustworthiness of the STP government, then there will never be oil exploration in the JDZ. So, since we know that Nigeria and STP need this to happen, it will happen now (or soon) because Utopia is not scheduled to arrive anytime soon.

Let me know if it does.

Thanks,
Maurice

Anonymous said...

Correct Maurice. Things will never be perfect. They never are. That doesnt mean nothing will happen.

Although I must admit I am very skeptical about awards happening tomorrow. I personally dont see it.

But I cant imagine Menenez would allow this to go on much longer.

They are jeopardizing their own EEZ, delaying revenues from the JDZ, and harming their image irreparably.

Anonymous said...

Award is pure fantasy. It does not even merit discussion. go to bed.


Colin S

Anonymous said...

If this goes on much longer no oil company will ever want to do business with Sao Tome. They are harming their future potential with the constant delays and political chaos.

Anonymous said...

Cynicism is justified, but prolonging this much longer is not in anybody's interest.

Can you name ANYBODY who benefits from delaying the awards at this point? Unless they are shorting the stock of small players in this deal, there is nobody.

So, awards are not fantasy. Fantasy is the assumption that STP will hold this up much longer without doing themselves irreparable damage.

Maurice

Anonymous said...

Maurice yes I can. It is in the interests of the opposition parties in Sao Tome to delay awards.

The longer the delays the worse it looks for Menenez. The longer the delays the less likelihood there will be oil discoveries prior to the elections.

So you cant view this through the eyes of a stock trader. You have to view it in the political realm.

Having said that Im sure Menenez realizes this and hopefully he will act accordingly.

Obasanjo would have never allowed this in his country. He is a very strong and forceful leader. Menenez seems to be more of an appeaser which is never a good thing.

Anonymous said...

im not here to throw gratuitous insults, but to place things in their proper context. this is not the first time sao tome government screw up but we must let the system work, and accept its result, no matter how unjust it might appear. something has gone horribly awry. difficult to believe it could go that wrong, Fortunately, however there is support at 30 cent.


Colin S

Anonymous said...

Touche, 5:49, you are right in a way. The opposition benefits, unless the fact that they are keeping money out of the pockets of the citizens of STP backfires on them.

I don't know STP politics, but in the USA, if you keep money out of the pockets of the citizenry that is political suicide, no matter what your motivation.

Maurice

Anonymous said...

Colin you better sell your shares then. Dump them first thing in the morning before the price plummets lol.

Anonymous said...

i would expect more bad news before market open. joe your wish come true. what goes around, comes around.


colin S

Anonymous said...

Colin:
Are you in STP? English is clearly not your first language, not an insult just an observation. What is your political leaning if that is the case?

Seems you are either MLSTP or sympathize with their cause, since your gauge of the support level of the stock also seems to have been pulled out of thin air.

Maurice

Anonymous said...

Maurice that is true. But much like America when the media is against you and for the opposition then the true story never gets to the masses and they get swayed to believe the wrong thing.

Much like CBS and 60 minutes, NY times etc

Anonymous said...

5:58 - Bad Example

As you must realize, those entities tended to not back George Bush, and who is our president?

Anonymous said...

Michigan, Oakland County

Anonymous said...

5:58 Well they tried and did sway alot of people and have been trying to do that for years. They have been talking heads for the Democratic Party.

Eventually people caught on. The people of Sao Tome may not be at that stage yet and may not realize it.

Anonymous said...

6:04 Actually, not quite valid. The mainstream US media has gone to pains to appear to be mainstream in their views historically, but with FOX News on the front and the many cable networks, the viewpoint of the viewer dictates their news choice, not the other way around.

So, that is consistent with your Psych 101 lessons. Selective Perception. People chose to hear what they want to hear. That is true in STP also, and if what they want to hear is "so sorry, no money, but we are principled" and not "here is some money" then MLSTP is the right choice.

Anonymous said...

That was Maurice, by the way, at 6:15.

Anonymous said...

Colin:

How is the pulse of the STP/Nigeria community in Pontiac, Michigan? Up in arms over the bidding process?

Maurice

Anonymous said...

Maurice sorry but your take is wrong.

The US media was extremely liberal for the last 20 years. They had a one sided approach to everything and were force feeding their liberal views on everyone.

It wasnt until FOX came along that there was actually something in the media to balance out the favoritism.

Dont sit their and act like the US media was perfect until FOX came along. Far from it. Fox is forcing the rest of the medai to be more balancved because now viewers have another choice and dont have to put up with the left wing propoganda that has been shoved down our throat for 20 years.

As for Sao Tome. They too are hearing a "one sided" affair. No one is explaining to them all of the good ERHC has done for their country. If it wasnt for ERHC there wouldnt be any bids for oil blocks because know one would have known the oil was their in the first place. Its typical anti corporation bs from the media. The media their also never expalins to the people that ERHC/Noble is offering to pay more of their signature bonus up front and is going to drill more wells on a faster timeline.

The Nigerians know this is a better deal because they have experience in the oil biz. Unfortuantely the Sao Tomeans dont and their media doesnt care to figure it out.

Anonymous said...

Quando um dos doze membros do conselho ministerial conjunto disser não, não há assinatura.


roflmao

Colin s

Anonymous said...

Maurice are you a Detroit Pistons and Detroit Lions fan

Anonymous said...

Colin:
If you can support the assertion of one member of the council being able to hold up the deal, then do so. Doesn't appear to be supported.


Maurice

Anonymous said...

Agora vá a cama meu freinds, amanhã você perderá todo seu dinheiro.


Good luck

Colin S

Anonymous said...

Colin best of luck to you as well.

Anonymous said...

6:24 You misunderstand

With the advent of FOX News the lines became clear, and that was new. We now have clear right-wing and left-wing media outlets, with no pretense of unbiased journalism.

FOX did not create right-wing views, just the same as left-wing journalists did not create left-wing views. People have them and respond to the news they choose.

So, the media is balanced, but much less so within individual media outlets, only when taken as a whole.

Anonymous said...

Well stated 6:35

Anonymous said...

All of this is more BS conjecture from Joe and the rest
Stop the manipulation!!!

Anonymous said...

No its not, it was just me, Maurice and Colin having a friendly debate.

I respect both of their opinions and maurice made excellent points counter to mine.

By the way, someone needs to kick Walldog off of raging bull. He is an absolute embarassment with his rants. He goes way overboard and should be kicked off the board.

And this is coming from a conservative republican.

Walldog tone it down. Or go take some anger management classes.

Anonymous said...

6:48 - Sort of friendly

Colin signed off by saying tomorrow we would lose all our money, which is not a very nice wish. Of course, for you like me that would have to mean that real estate, cars, the general stock market, and ERHE would have to go down in flames. I view that as unlikely...

So, to provide balance (ha ha) I say, good night and may you swim in wealth in the morning! (Even if you are a right wing nut job. ;))

Maurice

Anonymous said...

Maurice just because someone leans to the right doesnt mean they are a right wing nut job.

Ok you left wing socialist LOL

Anonymous said...

******Barry Morgan******Upstream****


New fish on hook for JDZ awards
The second licensing round in the Joint Development Zone (JDZ) administered in disputed waters in the Gulf of Guinea by Nigeria and Sao Tome&Principe is finally drawing to a close.
At stake are five deep-water licences blocks 2, 3, 4, 5 and 6 of varying prospectivity. It is understood all will be awarded before the end of this week.

The Joint Ministerial Council is constrained by bilateral treaty provision to conclude the round within a set period and this has long since expired, according to Nigerian officials. Abuja is keen to see the gridlock resolved.

Equity stakes in the three most attractive blocks have been agreed and some minor details are being finalised for the less popular blocks 5 and 6, but latest indications are that the two presidents Olusegun Obasanjo of Nigeria and Fradique de Menezes of Sao Tome are agreed on the main players.

Nigeria in particular is keen to see the operatorship of Block 2 go to US explorer Pioneer Natural Resources. Pioneer bid with Devon Energy and US minnow ERHC Energy, linked to Nigerian indie Chrome Energy, which also bid directly and already enjoyed preferential equity rights on this and several other blocks.

The Pioneer group as a whole will likely be awarded 70% of Block 2 with 10% going to Bermuda-registered Equator Exploration (EEL) recently listed on London's Alternative Investment Market which also enjoys entitlement to a share of licensing fees from JDZ seismic data sales under a joint operating agreement with Petroleum Geo-Services. Another 20% will be awarded to two unidentified Nigerian indies.

An operating stake of 50% in Block 3 will be awarded to Anadarko Petroleum, with ERHC landing 35% and EEL 10%. Spare equity on the block will go to a Nigerian indie.

Noble Energy, in partnership with ERHC, also fought hard for Block 4 where Noble has now convinced the Joint Development Authority that its drilling budget and clear commitment to three wells outplays Anadarko's one-well bid. The Noble/ERHC tie-up will likely be rewarded with a 70% stake, with Noble operating and a minimum of 20% awarded to local indies.

It is understood the PSCs will bear a strong resemblance to terms signed earlier this year for Block 1 with operator ExxonMobil, Chevron and Dangote-Energy Equity Resources. All players want to drill without delay and even the World Bank is understood to have advised Sao Tome that the above line-up was the best commercial deal.

Hardest to convince was Houston-based Patrice Trovoada, the son of former Sao Tomean President Miguel Trovoada and until last week Menezes' Special Adviser on Oil Affairs. Patrice Trovoada was ousted from office last week after pushing hard for EEL and its partner ONGC Videsh to operate Block 4, but to no avail.

Meanwhile, Sao Tome's Natural Resources Minister Arlindo Carvalho tendered his resignation this week, citing pressure over delays in concluding the round amid allegations of "irregularities" in negotiating awards.

Catch of the day:Nigeria and Sao Tome are set to reel in big exploration players on blocks to be awarded under the second JDZ licensing roundPhoto: ELIN HOYLAND

tradertrades said...

Joe,

Mongo the very CURT is making a mess here, huh?

Anonymous said...

WHY DON'T YOU ALL JUST SHUT UP AND STOP GIVING YOUR 1 CENT OPINIONS ABOUT THIS SITUATION. YOU ARE ALL SO CLUELESS. THIS IS A POLITICAL PROBLEM THAT ONLY STP WILL SOLVE NO ONE ELSE. NOT EVEN OBIE!

Anonymous said...

Why is this person so upset? Comes to a message board and does not want to read opinions? How stupid could they possibly be?