ChevronTexaco signs production sharing contract on block-1 of Nigeria and São Tomé and Príncipe joint development zone

ChevronTexaco JDZ Ltd., an affiliate company of ChevronTexaco Corp., has signed a production sharing contract (PSC) with the Nigeria – São Tomé and Príncipe joint development authority (JDA) on block 1 in the joint development zone (JDZ).

ChevronTexaco JDZ Ltd., an affiliate company of ChevronTexaco Corp., has signed a production sharing contract (PSC) with the Nigeria – São Tomé and Príncipe joint development authority (JDA) on block 1 in the joint development zone (JDZ). The block, which will be operated by ChevronTexaco, was awarded in April 2004 following ChevronTexaco's successful $123 million bid. The PSC will come into legal effect once remaining outstanding conditions have been met.

"We are very pleased to have reached this milestone," said Jay Pryor, managing director of ChevronTexaco's Nigeria/Mid-Africa upstream business unit. "The governments of Nigeria and São Tomé and Príncipe deserve much recognition for their leadership and foresight in establishing the JDZ, which today has led to this first PSC signing. We are looking forward to working with our co-venturers, ExxonMobil, and Dangote Energy Equity Resources, and the JDA in launching exploration activities in the block as soon as possible."

Jay Pryor also praised the two governments for their commitment to transparency and accountability. "The PSC provides for the public disclosure of payments made under the contract, in keeping with the transparent manner in which the bid round was conducted," he said. "We commend the governments of Nigeria and São Tomé and Príncipe for embracing these values and indicating their resolve and commitment to ensure a successful realization of a new standard of accountability. ChevronTexaco fully supports these efforts to ensure openness and public accountability in the development of oil and gas activities in the JDZ."

Block-1 is 190 mi north of the city of São Tomé and Príncipe in 5,700 ft of water. The consortium members are ChevronTexaco JDZ Ltd. (51%); Esso Exploration and Production Nigeria – São Tomé "One" Ltd. (40%) and Dangote Energy Equity Resources Ltd. (9%), (a joint venture between the Dangote Group of Nigeria and Energy Equity Resources AS of Norway).

02/01/05

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