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Article: Dreaming the dream: although Sao Tome and Principe is not yet producing any oil, hopes are high that the current exploration activity will soon discover substantial commercially exploitable reserves. What will the oil windfall mean to the ordinary citizens? Neil Ford discusses.
- Article from:
- African Business
- Article date:
- June 1, 2007
- Author:
CopyrightCOPYRIGHT 2007 IC Publications Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The government of Sao Tome and Principe has announced that it is to launch a third licensing round for acreage in the joint development zone (JDZ) that it shares with Nigeria. Commercial volumes of hydrocarbons have yet to be discovered in those blocks that have so far been awarded but exploration efforts are still at an early stage.
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International oil companies are hopeful that large oil discoveries will be made; meanwhile, even the signature bonuses that are being paid as part of the concession process are providing a massive injection into the government's coffers.
The first discovery of oil was made by Chevron in May 2006 in ...