NIGERIA, SÃO TOMÉ AND PRÍNCIPE SIGN OIL PRODUCTION DEAL WITH TOTAL
Nigeria São Tomé and Príncipe Joint Development Authority (JDA) on Thursday, signed an oil production sharing contract with French oil company, Total Nigeria PLC.
Total was formally granted the right to explore for oil in the Joint Development Zone (JDZ) blocks after negotiations were concluded and a Production Sharing Contract (PSC) signed by parties involved at a ceremony in Abuja.
The French Oil Company was given the exclusive right to begin exploration of over 500 million untapped barrels of crude oil in three blocks – 7, 8 and 11, located within the hydrocarbon-rich JDZ owned by both countries in the Gulf of Guinea.
Speaking at the PSC signing ceremony, the Managing Director, Total Exploration and Production Nigeria (TEPN), Mr. Nicholas Terraz, stated that the oil company would invest more than $10 billion to acquire three-dimensional seismic data of oil and gas prospects in the blocks.
He added that the company would take 100 percent of the financing, but may seek partners as discoveries are made.
Terraz explained that it would be too early to estimate the hydrocarbon potential of the blocks, adding that more than 1,000 square kilometres of the field would be explored.
Similarly, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, called for integration among countries within the West Africa sub-region to provide lasting solutions to the its numerous energy challenges.
The JDZ is an area in the region of the Nigeria – São Tomé and Príncipe boundary region speculated to be rich in oil and gas reserves.
Considering that neither country could have explored the resources in the zone without interfering with their maritime rights, they agreed in a treaty to create a Joint Development Authority (JDA) to develop the field and mutually benefit from its resources.