Democratic Republic of São Tomé and Principe

AAPG Conference New Orleans

Luís Prazeres

Executive Director ANP-STP

Democratic Republic of São Tomé and Príncipe

• Location:Location: In the Gulf of Guinea, off the west-In the Gulf of Guinea, off the west-

central coast of Africa, 300 kms (160 mi.) from central coast of Africa, 300 kms (160 mi.) from

GabonGabon

• Capital: Capital: SSãão Tomo Toméé

• Land area:Land area: approximately 1001 Km approximately 1001 Km22

• Maritime area:Maritime area: approximately 166,000 Km approximately 166,000 Km22

• Distance from Continent: Distance from Continent: 300 Km300 Km

• Population: Population: 160,000 (estimate 2007)160,000 (estimate 2007)

• Climate: Climate: Tropical. Average temperature 26° C Tropical. Average temperature 26° C

(78° F) on the coast; lower in the highland. Dry (78° F) on the coast; lower in the highland. Dry

season June to August. Short periods of tropical season June to August. Short periods of tropical

rains during the rest of the year.rains during the rest of the year.

• Official Language: Official Language: PortuguesePortuguese

• Government: Government: Semi-presidential Representative Semi-presidential Representative

DemocracyDemocracy

• Natural Resources:Natural Resources: Cocoa, coconuts, bananas, Cocoa, coconuts, bananas,

coffee, palm oil, fishes, Petroleum (not yet coffee, palm oil, fishes, Petroleum (not yet

exploited)exploited)

• Export:Export: cocoa, coffee, coconut, pepper cocoa, coffee, coconut, pepper

• CurrencyCurrency: Dobras (STD): Dobras (STD)

PRIME MINISTERS SPEECH

São Tomé

STP

THE COMPETENT AUTHORITIES

The GovernmentThe Government of the Democratic Republic of São Tomé and Príncipe, at any time and from time to time, in accordance with Article 109 of the Constitution of Democratic Republic of São Tomé and Príncipe.

 

Ministry of Natural Resources, Energy and Environment The Ministry establishes the policies for the petroleum sector.

 

National Petroleum AgencyThe Agência Nacional do Petróleo de São Tomé e Príncipe (“ANP-STP”) was established by Decree-Law No. 5/2004, of the 14th of June. It is the national regulatory body, reporting to the Ministry, with responsibility for enforcing the regulations, contracting with third parties and supervision of petroleum operations.

Organisational structure

Petroleum law provides the legal foundation for the governance structure of petroleum activities clarifying roles and interests:

Commercial InterestResource owner

Oil Companies

Regulator

ANP-STP (National Petroleum Agency)

• Is the regulatory authority for the petroleum operations (exploration, production and transport of hydrocarbons)

• Participate in the proposal of legislation and its implementation

• Promote the exploration within exclusive economic zone

• Organize and conduct licensing including negotiations with applicants

• Assess and recommend the approval of field development plans and tail-end production and abandonment

• Co/ordinate all government supervisory functions related to petroleum operations

Agencia Nacional do Petróleo (ANP-STP)

Overview of ANP organisation

Zones & Blocks

São Tomé and Príncipe Exploration History

Pre 1970 Oil seeps on the islands have attracted interest

1970 Ball & Collins licensed onshore and shallow offshore – drilled two shallow wells near seeps

1990 Island Oil drilled two deep onshore wells near seeps, including Ubabudo-1 drilled to 1501m

1998 Mobil held 18 month Technical Assistance Agreement for whole STP offshore

2001-2005 PGS acquired 10,000 km of 2D seismic in EEZ and 3000 sq km of 3D in JDZ

JDZ Update

• JDZ is a Zone established on 21 February 2001 by the Abuja Treaty, jointly controlled by the Federal Republic of Nigeria and Democratic Republic of São Tome and Principe for the purposes of the exploration for and exploitation of resources,aimed at achieving optimum commercial utilization for two countries.

• 2003 and 2004 JDZ Licensing Round produced 4 active production sharing contracts,for Blocks1-4. The Blocks 5-6 are yet to be concluded.

• The recent drilling operations for the JDZ Blocks 1-4 have encountered some very good reservoir sands, many of them charged with oil and natural gas.

STP 1st Licensing Round - Summary

• License Round opened on the 2nd March 2010

• The License Round will close on the 15th September 2010

• The Licensing Round is based on open tender.

• Applicants will be assessed based on evaluation criteria

• The State reserves the right to participate in petroleum operations. The participation may be directly or through an entity wholly or partly owned and controlled by the State

• No petroleum activity may be undertaken in the EEZ, except pursuant to and in accordance with the Petroleum Law n˚ 16/2009

• 3 Phase of exploration: 4+2+2

• The cost recovery ceiling shall be a maximum of 80%

• International Oil companies commencing activities in the country for the first time are required to either be registered or incorporated upon award of acreage and prior to the commencing of any operations

1st Licenses Round - blocks on offer

Block Zone Area_sq_km Status

1st License Round

1 A 3,292 Open Yes 2 A 4,969 Open Yes 3 A 4,228 Open Yes 6 A 5,024 Open Yes 8 B 6,497 Open Yes 7 B 6,384 Open Yes

13 B 6,777 Open Yes

Seismic Coverage (Multi-Client)

STP99 • 5,925km• Acquired 1999 for Mobil

STP01• 3,600km• Acquired 2001 - PGS

STP02• 1,500km• Acquired 2002 - PGS

STP05• 5,800km• Acquired 2005 - PGS

Geo-Technical Data

The Geo-Technical Data package has been prepared from all the data available from within the ANP-STP archives and includes:

• Technical Reports

• Technical Presentations

• Well Data

• Petrographic Data

• Seismic Data

• Gravity & Magnetic Data

• Field Work Data

• Geochemical Data (seep analysis)

• GIS Project (copy supplied to data room visitors

• Workstation Project (SMT Kingdom)

Data Rooms

Sao Tome Data RoomOpen now

UK Data Room

Open now

– Key Technical Reports (Paper & pdf)– Technical Reports (pdf)– SMT Kingdom Project– Limited seismic displays

Data Room Rules Apply

Technical Summary

• 7 offshore blocks available in round

• Located in deep water of hydrocarbon rich Gulf of Guinea

• Traps identified in region are both structural and stratigraphic

• Ubabudo-1 well onshore, offshore region undrilled

• Potential reservoirs proven onshore, seeps on and offshore

• Prospective acreage, currently unlicensed

STP - Play Fairways

Distal toe thrusts of the Niger Delta

Low relief structures, fracture zone drape and stratigraphic traps to south of toe thrust zone

Major Tertiary fan systems

Dominantly Cretaceous fan systems derived from Eq. Guinea margin

Cretaceous structural traps and drapes over fracture zones with sediment derived from the Gabon and EG margin

JDZ

EEZ

Regional line (W-E Line)

5 km

Drape over tilted fault block

5 km

Brightening on structure

Brightening on structure

São Tomé and Príncipe Seeps

Gas escaping at Ubabudo-1

• Cretaceous oil is currently seeping in to this concrete emplacement of an artesian well on São Tomé.

• Natural oil seeps from both islands belong to separate oil families, although similar in appearance and viscosity.

– São Tomé similar to Azile and Anguille Fm sourced oils in Gabon.

– Seeps in Príncipe more mature.

– Slicks observed offshore Príncipe

Reservoir

•  Good quality sands have even been deposited as far south as Sao Tome. This slide shows some outcropping quartzose sands on the island together with a well drilled through several hundred metres of sands alternated with shales and volcanics, tentatively equivalent to the Agbada Formation.

Model PSC

PRODUCTION SHARING CONTRACT

Applicants should take due notice that the PSC is based on an administrative law in which a specific number of fiscal elements are non-negotiable.

Exploration Period

The Exploration and Appraisal period is 8 years, split in to three phases:

• Phase 1 – four (4) years

• Phase 2 – two (2) years

• Phase 3 – two (2) years

Production Period:

• 20 years with possible 5 year extensions for economic depletion

www.stp-eez.com

Houston – Road Show Presentation

• Houston Presentation Thursday April 15th – At PGS Houston Office

– Invitations on the Sao Tome & PGS Stands

• Houston Data room available

1. INTRODUCTION

2. THE COMPETENT AUTHORITIES

3. LEGAL & FISCAL DOCUMENTS

4. APPLICATION REQUIREMENTS & FEES

5. APPLICATION DOCUMENT

6. SUBMITTING AN APPLICATION

7. BID EVALUATION CRITERIA

8. PROCEDURE FOR ASSESSMENT

9. TECHNICAL DATA AVAILABILITY & ACCESS

10. FURTHER INFORMATION

All information is available from www.stp-eez.com

STP 1st Licensing Round

We welcome you in São Tomé and Principe License Round closes on the 15th September 2010