Sao Tome to Terminate Oil Block with Sinopec-Sonangol JV

Source: Reuters 12/7/2016, Location: Africa

Sao Tome and Principe has decided to terminate an oil concession granted to Sinoangol, a joint venture between China's and Angola's state-owned petroleum companies for "breach and violation" of their contract, the National Petroleum Agency (ANP) said.

"Among several breaches and violations, Sinoangol never provided the Sao Tomean state with information regarding the amount received from the transfer of 30 percent of participatory interest in block 2 that occurred on March 31, 2014," ANP director Orlando Pontes said in a statement.

Sinoangol paid $100,000 to Sao Tome and Principe’s National Oil Account in 2014 as a transfer fee on the cession of 30 percent of its holding in block 2 to Sonangol, according to a report on the Extractive Industries Transparency Initiative's website. Neither Angola's Sonangol nor China's Sinopec could immediately be reached for comment.

Sao Tome, a tiny former Portuguese colony in Africa's Gulf of Guinea, is surrounded by oil-rich neighbours but has failed to find oil after several years of prospecting. However, several firms are looking for crude in blocks the industry sees as likely to yield it eventually.

Sinoangol acquired the block in 2013 and promised to invest $154 million to develop it. Pontes said tax owed to the state from a transfer of its stake was never paid.

Other companies operating in the island nation include Equator Exploration Ltd on blocks 5 and 12, and Houston-based ERHC Energy Inc in block 11.


Australia >>  1/21/2022 - Triangle Energy (Global) Limited provides the following update regarding the WA-481-P transaction with Pilot Energy Limited (Pilot).

Trian...

Myanmar >>  1/21/2022 - Following the coup of 1st February 2021 in Myanmar, TotalEnergies has firmly condemned on several occasions the abuses and human rights violations tak...

Australia >>  1/19/2022 - Bounty Oil & Gas NL is pleased to provide a market update in relation to its various operations across its Australian assets. Bounty’s main focus in 2...
Brazil >>  1/19/2022 - Petrobras, regarding the pieces of news in the media about the divestment project of the Potiguar Cluster, which includes a set of 22 concessions of o...

Guyana >>  1/19/2022 - Eco (Atlantic) Oil & Gas Ltd., the oil and gas exploration company focused on the offshore Atlantic Margins, is pleased to announce that it has purcha...
Russia >>  1/19/2022 - A-Property and Zhejiang Energy International Limited (a subsidiary of Zhejiang Energy Group, a 100% state-owned company in Zhejiang Province) signed i...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.