Equator Exploration - Sao Tome oil play

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Basically, STP are objecting to "tin-pot company" (my words!) ERHC receiving a share in the JDZ Blocks w/o having to pay a signature bonus. The EEL/ONGC JV have a share in Block 2 (which they have to pay for, as per other companies who went thorugh the bid round), but the spat doesn't directly affect them, it is just delaying the signing of the PSCs for the Blocks. The Nigerians appear to be "looking after" ERHC's "rights".

EEL have first entitlement to 2 Blocks in the exclusive STP EEZ when that is licenced (probably end of 2006, start of 2007 according to reports), but these rights are NOT free of signature bonus - payment could be up to US$80-odd depending on what (if anything) is discovered. ERHC also have rights in the STP EEZ, and these may be free of signature bonus, which the STP govt may not now be happy with after seeing what the JDZ blocks are going for. Hence, the posturing.