Call For US Probe An 'Attack On Nigeria,' ERHC Lawyer Tells Daily Independent

In a statement that escalated the war of words brewing over a call by Sao Tome's Attorney General Arlindo Pereira for an American probe of old and much-recited - but as yet unproven - charges that ERHC Energy and its predecessor, Environmental Remediation Holding Corp., bribed Sao Tomean officials to get its extraordinary equity interests in the Gulf of Guinea's Nigeria-Sao Tome and Principe Joint Development Zone, ERHC attorney Steven Ahaneku today told veteran oil writer Bassey Udo the Daily Independent that the call was "a direct attack on Nigeria" by Sao Tome.

The fierce response reflects our own belief posted here on Monday that the report will lead within weeks to a break in diplomatic relations with Sao Tome. Many feel the possibilities of that are dim, however. We foresee a series of increasingly bitter exchanges over what leading Nigerians have called "a huge embarrassment" for the country, and a dissolution of the Joint Development Zone unless the Sao Tome Parliament acts promptly to save it, which is unlikely.

Until recently, Aheneku was Chief of Staff to Nigeria's Senate President, Chief Anyim Pius Anyim.

Here is the short article, hot off the presses from tomorrow's Independent:

JDZ 2004: ERHC says call for U.S. probe attack on Nigeria

By Bassey Udo,
Energy Editor

Houston-based ERHC Energy has described reports by the Sao Tome and Principe Attorney General calling for the United States probe of the award of oil blocks under the 2004 licensing round of the Nigeria-Sao Tome Joint Development Zone (JDZ) as a direct attack on the Nigerian government.

Speaking for the first time on the issue, ERHC, through its Counsel, Steve Ahaneku, urged the Federal Government to view seriously claims in the report that bid round was a failure, as the Sao Tomean government participated fully in all aspects of the process that led to the final award of the five blocs on offer.

ERHC, which had preferential rights in all the blocks in the zone by virtue of its involvement in exploration activities in the area prior to the creation of the zone, were awarded equity ranging from 15 to 65 percent.

In Bloc-2 where it emerged operator along with US companies Devon and Pioneer, ERHC was awarded a 65 percent stake, 25 percent in Block 3 along with Devon and 60 percent equity and operatorship of Block 4 as well as 15 percent each of Blocks 5 and 6.

But, the Sao Tomean report is claiming that ERHC’s participation in the bid round deterred qualified companies from the exercise, an allegation Ahaneku dismisses as factually incorrect, since the company brought into the bid process major US firms like Devon, Pioneer and Noble, with vast experiences in deepwater operations.