Sao Tome and Principe appoints new oil minister
Uchenna Izundu
International Editor
LONDON, Nov. 12 -- Cristina Dias has been named Petroleum and Energy Minister of Sao Tome and Principe after her predecessor, Carlos Fernandes, resigned last month citing ill health. He had held the position for less than 4 weeks.
Dias previously was a senior official working in Sao Tome's Petroleum Agency and last year served as Agriculture and Fisheries Minister.
Among the challenges Dias faces are resolving disagreements associated with the Nigeria-Sao Tome and Principe Joint Development Zone (JDZ). Analysts say it is crucial that the country and Nigeria, which share the joint offshore zone, discuss potential oil exploration and seek oil signature bonuses for Blocks 5 and 6 in the zone. Exploration there has been delayed because of disagreements between the Joint Development Agency (JDA) and investors in the two blocks.
Earlier this month, ERHC Energy Inc., Houston, filed a lawsuit in Abuja against JDA and the Joint Ministerial Counsel of the JDZ to stop any interference with its rights on Blocks 5 and 6. It holds a 15% working interest in each of the blocks after they were awarded in the 2005 licensing round.
"We are taking decisive action to secure and protect the rights of ERHC and its shareholders from unlawful tampering," said Peter Ntephe, ERHC's chief operating officer. "We continue to have the utmost respect for the JDA and hope that this is a misunderstanding that can be resolved quickly in accordance with the legal agreements."
The International Monetary Fund has stressed in its latest report on Sao Tome and Principe that its medium and long term perspectives depend "critically upon oil exports and revenue."
The country is hopeful that oil production could start in 2014. However Chevron Corp., which operates Block 1 in the JDZ, has not yet found any commercially viable oil reserves.
Contact Uchenna Izundu at [email protected].