Mobil to sign shared production agreement with Sao Tome gov't
June 21, 1999
newspage.com
SAO TOME, SAO TOME AND PRINCIPE - AP World News via NewsEdge Corporation : A delegation from U.S. company Mobil Corp. is due to arrive Sunday in Sao Tome and Principe to sign a shared oil production agreement with the government, Prime Minister Guilherme Posser da Costa announced Friday.
The premier declined to add any details on the deal, adding that a recent seismic survey drew up ''encouraging'' conclusions that he did not specify.
Oil ministry officials said on condition of anonymity that the survey found Sao Tome's oil reserves would last 200 years, with an estimated production of 500,000 barrels a day.
Previous estimates indicated oil production in Sao Tome would bring an annual revenue of dlrs 46 million (euros 44.5 million).
Sao Tome and Principe lies in the Gulf of Guinea, about 240 kilometers (150 miles) west of Gabon _ one of the African continent's most active oil exploration areas.
Last year, U.S. company [ERHC : OTC_BB] Environmental Remediation Holding Corp., which started offshore oil exploration in July 1997, said it had found oil in the country's territorial waters.
The company, in conjunction with Mobil, entered a joint venture with the government, called STPETRO, to develop the country's oil and gas reserves.
(md/cp/jt)
[Copyright 1999, Associated Press]
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