ExxonMobil Signs PSC for Exploration in Nigeria/Sao Tome JDZ

ExxonMobil's subsidiary, Esso Exploration and Production Nigeria-Sao Tome "One" Limited, has signed a Production Sharing Contract (PSC) with the Nigeria - Sao Tome and Principe Joint Development Authority (JDA) and consortium co-venturers ChevronTexaco and Dangote Energy Equity Resources, to explore for commercial hydrocarbons in Block 1 of the offshore Joint Development Zone (JDZ).

"ExxonMobil appreciates the opportunity to be one of the first companies to work with the JDA in the joint development zone," said Tim Cejka, president of ExxonMobil Exploration Company. "There are large areas around the world with significant hydrocarbon potential that are off limits because they lie under unresolved international territories. We hope that Nigeria's and Sao Tome and Principe's approach will be emulated by others as growing world energy demand will continue to require new sources of supply."

The signing of the PSC provides for Block 1 exploration to proceed in the JDZ, followed by economic development of discovered resources, if successful, for the benefit of both nations. It also provides for disclosure of payments made under the contract, in keeping with the transparent manner in which the bid round was conducted. The consortium fully supports these efforts to ensure openness and public accountability in oil and gas activities in the JDZ. Consortium members include Esso Exploration and Production Nigeria-Sao Tome "One" Limited (40 percent), ChevronTexaco JDZ Limited (51 percent, operator), and Dangote Energy Equity Resources (9 percent). The block was awarded in April 2004 and is located in 5,700 feet (1,800 meters) of water approximately 190 miles (300 kilometers) north of the city of Sao Tome.