Nigeria, Sao Tome and Principe sign oil agreement with Total SA

The Federal Government of Nigeria has continued to push the frontiers in its quest for sustenance in the Oil and Gas industry with the signing of an oil production sharing contract with Sao Tome and Principe and Total SA.

According to a joint statement, the tripartite agreement was signed Thursday.

“Nigeria and Sao Tome and Principe through their joint oil zone organization have signed a production sharing contract with Total E&P (Exploration and Production) Nigeria Limited that will prospect for oil in three blocks,” the statement said.

Nicholas Terraz, the Managing Director of Total E&P, said the company would take on 100 percent of the financing, but may seek partners as discoveries are made.

The estimated reserves of the blocks – 7, 8 and 11 – were not disclosed, but Total will be the first to do seismic studies, the statement said.

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Source: Reuters