Sao Tome and Principe Total pulls rug from under Kosmos Energy’s feet

摘要

As we announced ( AEI 807), Total’srninterest in Sao Tome & Principe’s offshorernoil is become more apparent. Afterrnoperating block 2, in the northern jointrndevelopment zone between Nigeria andrnSao Tome, the French major has nowrnturned its gaze to three blocks locatedrnin the archipelago’s exclusive economicrnzone. Total’s management is in talks withrnthe Agencia Nacional do Petroleo dernSao Tome e Principe (ANP-STP) withrnthe view to add blocks 2, 3 and 4 to itsrnportfolio. While block 2 is free for therntaking, block 3 belongs to Nigerian entrepreneurrnArthur Eze’s firm, Oranto, andrnblock 4 to ERHC. The latter is currentlyrnundergoing arbitration in London withrnKosmos Energy. Kosmos has accusedrnERHC of terminating an agreement signedrnin June 2017 under the terms of whichrnupon the outcome of the production sharingrncontract talks with ANP-STP, ERHCrnwould sell Kosmos all of block 4. InrnOctober 2017, ERHC canceled this optionrnand returned Kosmos’ down-payment forrnthe block. In documents submitted to thernarbitral court, Kosmos put forward thernpossibility that ERHC’s about-face overrnthe sale was because it had received arnhigher offer for the block. According tornour sources, Total reportedly negotiatedrndirectly with ERHC to acquire the blockrnand would therefore indirectly be thernreason for the arbitral proceedings. Totalrnalso reportedly discussed its interest inrnblock 4 with senior ANP-STP staff, its chiefrnexecutive Orlando Sousa Pontes andrngeneral counsel Alvaro Santos.