• Saturday, March 02, 2024
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BusinessDay

Four companies shortlisted in oil block licensing round

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oil facilityThe government of Sao Tome and Principe has short-listed four companies to bid on two oil blocks in its exclusive economic zone.The Central African island nation announced its plans to open a new licensing round for iZblocks 1 and 6. Petrogal, the former name of Galp, and London AIM-listed New World Oil and Gas will compete for both blocks. Blue Skies World Group is bidding on block 1, while London Global Energy is seeking to acquire block 6.

Sao Tome began awarding offshore blocks after signing an agree¬ment with Nigeria in 2001 to jointly develop acreage in waters between the two countries. However, it has been slower to attribute blocks in the territorial waters surrounding its two main islands.

Sinoangol, a joint venture be¬tween China’s Sinopec and Angolan state oil company Sonangol, acquired block 2 in the exclusive economic zone in 2013 promising to invest $154 million to develop the conces¬sion.