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, Reuters reported.
The Director of the National Petroleum Agency (ANP), Orlando Pontes, said in a statement: “Among several breaches and violations, Sinoangol never provided the Sao Tomean state with information regarding the amount received from the transfer of 30% of participatory interest in block 2 that occurred on March 31, 2014,” as Ecofin Agency informed.
Sao Tome is bordered by oil-rich countries but the country has been unsuccessful in finding crude oil after many years of searching. Yet, more than a few companies are searching for crude in blocks considered to yield it in the long run.
Sinoangol acquired the block in 2013 and promised to invest $154m to develop it. Pontes said tax owed to the state from a transfer of its stake was never paid.
Other companies active in Sao Tome and Principe include, Equator Exploration Ltd on blocks 5 and 12, as well as Houston-based ERHC Energy Inc in block 11.
