Dow Jones Real-Time News for InvestorsSM-ERHE
06:11 a.m. 05/09/2005
LONDON (Dow Jones)--Sao Tomean President Fradique de Menezes has fired his oil adviser just days before the country is expected to complete its current oil licensing round.
A presidential decree, seen by Dow Jones Newswires, dismisses Patrice Trovoada from his position with immediate effect. The decree, dated from May 5, gives no reason as to why the minister was removed, although it does say the move takes into account recent developments in the country's "petroleum dossier".
The decision appears significant, given current developments in the Joint Development Zone, a maritime region that Sao Tome jointly licenses with Nigeria. Five blocks are set to be awarded imminently in the JDZ, a region believed to have very good oil prospects.
The conclusion of the JDZ licensing process has dragged on since it began in April 2003. Carlos Gomes, Sao Tome's chief representative on the two countries' Joint Development Authority, said in April that block awards should be made by the end of that month, but the round has run into further unspecified delays.
According to sources close to the negotiating process, there has been continuing debate between Nigeria and Sao Tome over which companies should be awarded the acreage on offer, with the award of operatorships for Blocks 3 and 4 believed to be the main sticking point.
ERHE Energy (ERHE), a US-based company that has already been awarded preferential rights in the JDZ, released a press statement May 5 stating the Joint Ministerial Council, which oversees the JDZ, has submitted its recommendations on the structure and final awards of the blocks on offer, and that these now need to be endorsed by the respective heads of state.
As soon as this is done, ERHE says, the Joint Development Authority will announce the results of the licensing round.
"The JDA expects that this will take place before the end of (this) week," the ERHE statement says.
JDA spokesman Sam Dimka confirmed to Dow Jones Newswires that the JMC had submitted its award recommendations, and that the process now hinged on the approval of the Nigerian and Sao Tomean presidents. He didn't say when those approvals might be granted.
-By Norval Scott, Dow Jones Newswires; +44-20-7842-9344; norval.scott@dowjones.com
(Vincent Nwanma in Lagos contributed to this story.)
Dow Jones Newswires
05-09-05 0611ET
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