Licensing to follow seismic survey off Sao Tome

Sao Tome & Principe [93,950 bytes] Schlumberger Exploration Services of the U.K. has agreed to act as technical advisor to the Democratic Republic of Sao Tome and Principe and conduct a licensing round. License blocks are being demarcated and a fiscal system is being drawn up covering the 64,550 sq mile Sao Tome Exclusive Economic Zone. The Sao Tome islands lie in the Gulf of Guinea about 200 miles west of Equatorial Guinea and Gabon. As soon as blocks are drawn, Geco-Prakla will acquire 5,000

June 29, 1998

2 min read

Sao Tome & Principe [93,950 bytes]

Schlumberger Exploration Services of the U.K. has agreed to act as technical advisor to the Democratic Republic of Sao Tome and Principe and conduct a licensing round.

License blocks are being demarcated and a fiscal system is being drawn up covering the 64,550 sq mile Sao Tome Exclusive Economic Zone. The Sao Tome islands lie in the Gulf of Guinea about 200 miles west of Equatorial Guinea and Gabon.

As soon as blocks are drawn, Geco-Prakla will acquire 5,000 to 8,000 line km of nonexclusive, high resolution 2D seismic data over the blocks to be licensed.

Purchasing the data would be mandatory for license bidders, said Carl Trowell, a geologist and new ventures manager-Africa and Middle East for Schlumberger Exploration Services. The licensing round is planned for 1999.

Sao Tome has not produced oil or gas. The government, led by Prime Minister Raul Neto, signed an agreement in June 1997 with Environmental Remediation Holding Corp., Lafayette, La., and Procura Financial Consultants of South Africa, to promote and manage exploration and development activities.

ERHC initially planned to conduct seismic surveys and drill an off-structure stratigraphic test on its own but apparently has decided against that approach. The company will retain an interest, along with a yet to be formed Sao Tome national oil company, in all blocks licensed, one source said.

Existing, 10 year old seismic data owned by Schlumberger consist of long regional lines that extend from the African margin into Sao Tome waters. Those profiles seem to show toe thrusts on the southern edge of the deepwater Niger delta, Trowell said.

Oil seeps have been known for about 100 years on both islands, he said. Samples of oil believed to be entrained in volcanics on central Sao Tome Island that seeped into an old, shallow well are to be analyzed shortly, he added.

Sao Tome, Principe, and four tiny islands are part of a volcanic chain that extends seaward southwesterly from Cameroon. The chain includes Equatorial Guinea's Bioko Island.

Except for the island-adjacent slopes, water off Sao Tome is 3,000-10,000 ft deep, sources said. The slopes drop steeply to 800-1,000 ft of water within a few miles of shore.

ERHC has announced plans to construct a logistics base on Sao Tome Island to support oil operations.