Mineral industry of São Tomé and Príncipe


Mineral industry of São Tomé and Príncipe

The mineral industry of São Tomé and Príncipe does not play a significant role in the country's economy.[1]

Contents

Production

Mineral production was limited to clay and volcanic rock; potential exists, however, for the development of the country’s petroleum industry. All other mineral product requirements were imported.[1]

Commodities

Petroleum

Indications of the existence of hydrocarbons in São Tomé and Príncipe were first noted in 1974, but attempts by the Portuguese Colonial Administration to sign a concession agreement with Ball & Collins North Sea consortium (a predecessor of Premier Oil of the United Kingdom) were abandoned following the country’s declaration of independence in 1975. Other attempts to start petroleum exploration during the late 1980s and 1990s also failed. In 2003, Nigeria (60%) and São Tomé and Príncipe (40%) agreed to jointly operate an overlapping maritime boundary located about 200 km offshore Nigeria known as the Joint Development Zone (JDZ). Activities in the JDZ were to be overseen by the Joint Development Authority (JDADA). The JDZ was divided into nine blocks, and a licensing round was opened for bids in 2004, which resulted in the award of Block 1 to a consortium made up of Chevron Corporation of the United States (51%), Esso Exploration and Production Nigeria-Sao Tome (One) Ltd. (40%), and Dangote Energy Equity Resources Ltd. (a joint-venture of the Dangote Group of Nigeria and Energy Equity Resources AS of Norway) (9%). The consortium signed a production-sharing agreement with the JDADA in 2005 and, in January 2006, began drilling activities within the block. In May 2006, the consortium announced that it had encountered hydrocarbons in the Obo-1 exploration well in Block 1 and that it was in the process of evaluating reservoir rock and liquid samples to determine the next step of the appraisal process. Block 1 is located about 300 km north of São Tomé and Príncipe and about 200 km south of the city of Port Harcourt in Nigeria.[1]

Asecond licensing round for Blocks 2 through 6 was opened for bids in 2005. Energy Inc. of the United States (ERHC) won the rights to these blocks and, in March 2006, the company signed a series of production-sharing agreements with the JDADA and several petroleum and gas companies, among which were Addax Energy Nigeria Limited, Addax Petroleum (Nigeria offshore 2) Limited, Addax Petroleum Resources Nigeria Limited, Sinopec International Petroleum Exploration and Production Corporation Nigeria, and several other petroleum and gas companies whose names were not disclosed. Following inquires by the Petroleum Affairs Commission, the National Petroleum Council recognized deficiencies in the awarding process and ordered a formal investigation. The Attorney General, after concluding that the procedures used in selecting petroleum companies was flawed, recommended a restructuring of the procedures for future bidding rounds that would conform to international standards. The Attorney General’s report also called for the reexamination of ERHC’s preferential rights for Blocks 2, 3, 4, 5, and 6 within the JDZ.[1] Since 2006, there has been no word on any of the reexamination of ERHC's preferential rights and the countries of Sao Tome and Nigeria are moving forward with the exploration of the JDZ for oil. In or about July 2009 there are scheduled two oil rigs to start exploration and drilling of petroleum reserves within blocks 2-4 and ERHC is predominant in these blocks. With the possible acquisition of Addax Petroleum by Sinopec, and with the reports of Sinopec looking into acquiring ERHC, it is looking more like Sinopec will be the mainstay of the JDZ for Sao Tome and Nigeria in this area.

References

  1. ^ a b c d Omayra Bermúdez-Lugo. "The Mineral Industry of Benin, Burkina Faso, and Sao Tome e Principe". 2006 Minerals Yearbook. U.S. Geological Survey (October 2007). This article incorporates text from this U.S. government source, which is in the public domain.

Wikimedia Foundation. 2010.

Look at other dictionaries:

  • São Tomé and Príncipe — Democratic Republic of, a republic in W Africa, comprising the islands of São Tomé and Príncipe, in the Gulf of Guinea, N of the equator: a former overseas province of Portugal; gained independence in 1975. 147,865; 372 sq. mi. (964 sq. km). Cap …   Universalium

  • List of São Tomé and Príncipe-related topics — This is a partial list of topics related to São Tomé and Príncipe. Geography * Extreme points of São Tomé and Príncipe * List of volcanoes in São Tomé and Príncipe Landforms Islands * Ilheu Bom Bom * Ilhéu das Cabras * Ilhéu Caroço * Ilhéu das… …   Wikipedia

  • Mineral industry of Benin — The mineral industry, which is limited to the production of cement, clay, gold, sand, and gravel, does not play a significant role in the Benin s economy.[1] Cement was produced by Ciments du Benin S.A., Société des Ciments d’Onigbolo, and… …   Wikipedia

  • Mineral industry of Africa — The mineral industry of Africa is one of the largest mineral industries in the world. Africa is the second biggest continent, with 30 million km² of land, which implies large quantities of resources. For many African countries, mineral… …   Wikipedia

  • Mineral industry of Mozambique — The Mineral industry of Mozambique plays a significant role in the world’s production of aluminium, beryllium, and tantalum.[1] In 2006, Mozambique s share of the world s tantalum mine output amounted to 6%; beryllium, 5%; and aluminium, 2%.[1]… …   Wikipedia

  • Mineral industry of Somalia — The mineral industry of Somalia produces small quantities of gemstones and salt.[1] The country also has deposits of feldspar, gypsum, iron ore, kaolin, limestone, natural gas, quartz, silica sand, tantalum, tin, and uranium.[1] The mineral… …   Wikipedia

  • Mineral industry of Mauritius — The mineral industry of Mauritius is small; the country does not play a significant role in the world’s production or consumption of minerals.[1] As of 2006, Mauritius produced basalt for construction, fertilizers, lime from coral, semi… …   Wikipedia

  • Mineral industry of Seychelles — The mineral industry of Seychelles consists mostly of production of such construction materials as clay, coral, sand, and stone.[1] Seychelles is not a globally significant mineral producer or consumer.[1] In 2006, imports of mineral fuels… …   Wikipedia

  • Mineral industry of Réunion — Production of mineral commodities represents only a small part of the economy of Réunion, although little quantitative information is available.[1] As of 2006, aggregates, cement, and seacoast coral continued to meet local construction needs.[1]… …   Wikipedia

  • Mining industry of Burkina Faso — Gold Mining often plays a significant role in Burkina Faso’s economy. Production of mineral commodities is limited to cement, dolomite, gold, granite, marble, phosphate rock, pumice, other volcanic materials, and salt.[1] UNICEF voert op dit… …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.