Five more blocks awarded in Nigeria-Sao Tome JDZ

June 2, 2005
The Nigeria-Sao Tome and Principe Joint Development Authority in Abuja approved the award of five more blocks in the Joint Development Zone in the Gulf of Guinea.

By OGJ editors
HOUSTON, June 2 -- The Nigeria-Sao Tome and Principe Joint Development Authority in Abuja approved the award of five more blocks in the Joint Development Zone in the Gulf of Guinea.

The signature bonus for the five high bids totaled $283 million for the blocks, in deep water 100 miles south of Port Harcourt, Nigeria.

A participant in each block is ERHC Energy Inc., Houston, successor to Environmental Remediation Holding Corp., which had cultivated relationships with Sao Tomean officials since 1997.

ERHC lists Emeka Offor as chairman and Ali Memon as president and chief executive officer. Memon, formerly with Marathon Oil Corp., joined ERHC in 2004.

The five blocks cover about 3,900 sq km only a few miles south of Akpo and other undeveloped giant oil and gas fields in Nigerian waters.

The JDA previously awarded Block 1 to a group led by Chevron Corp. and an ExxonMobil Corp. affiliate. Nearest to Akpo and in 5,700 ft of water 190 miles north of Sao Tome island, it went for a $123 million signature bonus.

Block awards
Here are the bidding groups designated as awardees earlier this week.

Block 2 covering 692 sq km went for a $71 million signature bonus. Operator with 65% interest is a combine of Devon Energy Corp., Oklahoma City, Pioneer Energy Resources Co., Irving, Tex., and ERHC. Other participants are a combine of Equator Exploration Ltd., London, and ONGC Videsh Ltd. of India with 15%, A. & Hartman 10%, and 5% each to Foby Engineering and a combine of Momo Oil & Gas, SOJITZ, IMT Int., and Nissho Iwai Corp.

Block 3 with 666 sq km went for a $40 million signature bonus. Operator with 51% interest is Anadarko Petroleum Corp. A combine of Devon and ERHC has 25%. A combine of DNO ASA, Oslo, and EER, presumably Energy Equity Resources of Norway, has 10%. A combine of Equinox Oil & Gas, Equinox & Energy Ltda., and Petro-China Co. Ltd. also has 10%, and a combine described as Ophir/Broadlink has 4%.

EER was also a participant in the group awarded Block 1 earlier this year.

Block 4 covering 857 sq km went for a $90 million signature bonus. Operator with 60% interest is Noble Energy Inc., Houston, and ERHC. Other awardees are identified as Conoil 20%, Hercules/Centurion 10%, and Godsonic Oil & Gas and Overt/Addax 5% each.

Block 5 with 1,091 sq km drew a $37 million signature bonus. Operator with 75% interest is identified as the ICC/OEOC consortium. ERHC holds 15%, and a combine known as Sahara/Denham/Wood Group got 10%.

Block 6 covering 588 sq km drew a $45 million signature bonus. Operatorship and 85% interest went to a combine identified as Filthim-Huzod Oil & Gas/DNO ASA/EER/Sinopec. ERHC holds 15%.