Sao Tome and Principe: Oil yields over US$90 million to the country

Sao Tome and Principe took in over US$90 million in oil revenue, the permanent secretary of the Sao Tome commission of the Extractive Industries Transparency Initiative (EITI) said Tuesday. José Cardoso said that about US$83 million was from signing bonuses for contracts to companies that plan to prospect for oil in the joint exploration zone between Nigeria and Sao Tome and Principe.

The remaining US$9 million came from awarding three blocks in the exclusive economic zone to prospect for oil and gas in the sea surrounding the archipelago of Sao Tome and Principe.

Cardoso, who said management of the so-called “generation fund” deposited in a bank account in the United States of America was “positive and responsible,” said that the government of Sao Tome and Principe has used 20 percent of that fund for the General State Budget.

As well as the joint zone based on a treaty signed in February 2001 that states 60 percent of revenue for Nigeria and the remaining 40 percent for Sao Tome and Principe, the archipelago also has an exclusive zone, made official in 2006.

The Extractive Industries Transparency Initiative (EITI) is a multilateral mechanism consisting of governments, companies, civil society groups, investors and international organisations, which discloses the amounts received by States and paid by companies seeking to explore mineral resources. (macauhub/ST)