Hopes have been reignited that a 40-year treaty signed 17 years ago for a Joint Development Zone (JDZ) between Nigeria, and Sao Tome & Principe, may become economically viable going by the level of renewed efforts by the countries.
Such efforts will lead to further review of the commercial viability of over 500 million barrels of crude oil reserves stranded in the region. Although most of the International Oil Companies (IOCs) that pushed for drilling rights in the region left at some point, they are now showing interest in returning to the zone, according to a top management staff of the Joint Development Authority (JDA), who craved anonymity.
Nigeria had sent a delegation to Sao Tome & Principe earlier in the year, to discuss among other issues, the need to strengthen the relationship. The source said that a visit of the Prime Minister of Sao Tome and Principe to Nigeria recently, was also an indication of readiness to revive the partnership. Similarly, the source disclosed that the organisation has been restructured with a new workforce and has gathered new data on the viability of the oil deposits in the region.
Source: The Guardian