Nigeria, Sao Tome and Principe to set up development zone investment

Nigeria, Sao Tome and Principe to set up development zone investment
Ngozi John-Anigbogu, Abuja

Nigeria and the Democratic Republic of Sao Tome and Principe have agreed to set up a Joint Development Zone Investment International, an arm of the Joint Development Authority that will do business with joint venture partners and other third parties.

This was part of the resolution of the 20th Session of the Joint Ministerial Council (JMC) which ended in Abuja, Nigeria on Tuesday. The JMC comprises ministers from the two countries and has the mandate to supervise the activities of the Joint Development Authority which is the coordinating organ of the joint development zone.

The JMC also approved the Production Sharing Contract (PSC) of Joint Development Zone Block Five in the Gulf of Guinea. The Joint Development Authority (JDA) was inaugurated on the 16th of January 2002, to "pursue the provisions of the Joint Development Zone Treaty.’’

According to the Nigerian Minister of State for Foreign Affairs, Dr Nurudeen Muhammad,  who led the Nigerian delegation to the 20th  JMC Session, "In the first decade of its existence, two licensing rounds were conducted in 2003 and 2004 which resulted in the award of six oil blocs out of which Four Production Sharing Contracts were signed. A total of six exploratory wells have been drilled in blocs one to four with varying results.’’

Exploration of joint resources

The Minister reiterated Nigeria’s commitment to the JDZ Treaty adding that she would do everything possible to sustain the JDA. Both Countries signed the JDZ Treaty on the exploration of joint resources in their exclusive economic Zone in the Gulf of Guinea.   

Expressing his Country’s appreciation to Nigeria for her contributions, Sao Tome and Principe Minister of Foreign Affairs and Communities, Dr Manuel Salvador who led his country’s team to the JMC meeting, acknowledged the progress made in the JDZ but called for an institutional review of the JDA mode of operation for more effectiveness and innovative execution of its functions in the future.

In the Minister’s words,"we also have to make recourse to that which is institutional which is conventionally called instrumental innovation, that is more work, better results and less cost. From there if necessary, critically look at the current structures that are supporting our system in order to determine what should be done in the nearest future. The Democratic Republic of Sao Tome and Principe considers it to be urgent to proceed to the restructure of the actual services in such a way that it would provide a better and greater efficiency.’’ 

Dr Salvador said that this was necessary in view of the global financial crises which require developing nations to adopt measures that would reduce the consequences of high prizes on their economies.

Ten years of the existence of the JDZ Treaty have seen both countries benefitting from contracting partners operating in the JDZ. These include renovation and refurbishment of twenty-eight schools in Nigeria, nine projects in Sao Tome and Principe, scholarship awards and construction of utility buildings in schools and various communities in both Nigeria and Sao Tome and Principe.

In the Non- hydrocarbon Resources Sector, the JDA is already partnering with Norway, Poland and Spain.  A Marine Resource Survey has been conducted to ascertain the fishery and other non-hydrocarbon resources in the JDZ.   

To ensure that the JDA continues unhindered in its functions, the Council of Ministers also approved the JDA 2012 Budget.

Cokey