Offshore staff
(West Africa) - Equator, together with its co-venturers, signed a production sharing contract with the Nigeria-Sao Tomé and Principe Joint Development Authority.
A 15% interest in JDZ block 2 of the Joint Development Zone has been awarded to Equator and its joint bidding partner, ONGC Videsh Ltd.
Based on a 3D seismic survey funded and acquired by Petroleum Geo-Services and Equator in 2003, the block has estimated recoverable reserves of 1 Bbbl.
JDZ block 2 is adjacent to Nigerian block OML 130 ,which contains the 700 MMbbl Akpo field and another series of discoveries totalling an additional 500 MMbbl and several tcf of gas.
Other stakeholders in the block include the consortium of Sinopec, ERHC Energy, and Addax Petroleum, who together have 65%, with Sinopec acting as operator of the block.
In addition, Nigerian firms A & Hatman (10%), MoMo Petroleum (5%), and Foby Engineering (5%) were allocated interests in JDZ block 2.
Under terms of the JDZ joint bidding agreement between Equator and OVL, any allocations will be shared on a 60%-OVL and 40%-Equator basis.
The signing bonus for JDZ block 2 is $71 million.
The JDZ was created through an agreement between the governments of Nigeria and Sao Tomé and Principe in 2001 whereby revenues derived from the JDZ will be shared 60:40 between these governments respectively.
The JDZ is governed by the JDA who has also signed blocks 3 and 4.
Block 3 was allocated to Anadarko (51%) who was designated as operator.
Other participants in block 3 are ERHC, Addax, and several Nigerian firms.
Block 4 was allocated to a consortium led by ERHC and Addax, who together have 60% and operatorship.
The additional equity in block 4 was allocated to Nigerian firms and Hercules, a company partnered with Canadian-based Centurion Energy.
JDZ block 1 was signed in early 2005 to a consortium, which comprised ChevronTexaco, ExxonMobil, and Dangote Energy Equity Resources, for a signature bonus of $123 million.
Drilling of the first well in JDZ block 1 is currently underway.
03/20/06
