Nigeria in New Oil Deal
 10th OCT 2006

Crude oil production could start as early as 2010 in a joint development zone (JDZ) shared between  Sao Tome and Principe and Nigeria, a senior industry official said at the weekend. Carlos Gomes, executive secretary of the Gulf of Guinea Commission regional grouping, said  US oil major Chevron Corp could drill a second test well by the third quarter of 2007 after announcing that it had found oil and gas in its first exploration well in an offshore block in the zone. "If everything goes right - because we still don't know - say within the next two years, Chevron declares commerciality, they have another year or so before they start production," Gomes said.

"Production in the JDZ could start between four to five years from now if everything goes to plan," said Gomes, who until August chaired a joint development authority set up six years ago to manage the shared offshore zone. Nigeria has a 60% stake in the zone with 40% going to the twin-island state of Sao Tome and Principe - one of the latest oil exploration hotspots in Africa's Gulf of Guinea region after a series of big finds in the last decade. The region, which included Nigeria, Angola and Equatorial Guinea, produces more than 4 million barrels per day and provides nearly 15% of US crude supplies, Gomes said. He said other firms with interests in the joint zone planned to drill in the second half of 2007 but were dependent on rigs being available. He gave no details of the companies concerned.

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