Total to take $200mn plunge in Sao Tome

Total, $200mn, plunge, Sao TomeFrench oil group Total may invest $200mn drilling oil block in Joint Development Zone (JDZ) between Sao Tome and Nigeria - Image Credit : AFPFrench oil group Total may invest $200mn drilling oil block in Joint Development Zone (JDZ) between Sao Tome and Nigeria

Francois Le Cocq, speaking after a meeting of the three partners in Sao Tome said that drilling is scheduled to begin in the first quarter of next year.

 

"We have a very ambitious programme that consists of drilling two holes in Block 1... it is an investment of approximately $200mn," the news wire quoted le Cocq, a managing director at Total, as saying.

The news comes after authorities said yesterday that indications of 'commerically viable' oil had been found in the exploration block.

Total said last year that it had acquired Chevron's 45.9 per cent interest in Block 1 in the JDZ, which it will operate in partnership with Addax Petroleum, Dangote Energy Equity Resources and Sasol Exploration and Production Nigeria.

The oil find, if successful, will be a first for Sao Tome, a tiny Atlantic archipelago nation where previous exploration attempts have failed to find oil in commercially viable quantities.

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