Nigeria, Sao Tome set up joint oil authority

Nigeria and Sao Tome have jointly established an authority to manage offshore oil exploration in the disputed Gulf of Guinea, although there is still disagreement over the exact sea border between the two countries. Presidents Olusegun Obasanjo of Nigeria, and Fradique de Menezes of Sao Tome and Principe, launched the Joint High Authority in Nigeria on Wednesday, the Portuguese news agency Lusa reported. The agreement to set up such a body was reached in February 2001, it added. The Gulf of Guinea, which lies between the two countries, is an oil- rich 180,000 sq km area that has been contested by the two for years. Under the accord, Nigeria will receive 60 percent of revenues and Sao Tome 40 percent. Lusa quoted Menezes as saying upon his return home, that Nigeria had released US $8 million for the management of the oil industry as the executive directors of the High Authority took office. Nigeria would also build an oil refinery and deep water port for Sao Tome as well as provide 250 study grants for Sao Tome personnel, Menezes reportedly added. Other countries would be involved in oil production in the twin-island Atlantic republic, particularly Angola and Portugal, who would provide technical assistance, news agencies reported. PANA said the authority would operate under the auspices of the Joint Development Zone established by the two countries.