Sao Tome and Nigeria Sign Agreement

Sao Tome and Principe has signed an agreement with Nigeria to establish more specific conditions to divide the oil wealth in the Gulf of Guinea. According one report, Sao Tome and Principe President Fradique de Menezes finalized the latest oil accord with his Nigerian counterpart Olusegun Obasanjo on the sideline of the World Summit on Sustainable Development in Johannesburg this week.

Under the deal, Nigeria will supply Sao Tome with 40,000 barrels a month from Block 264 of the joint exploration area. Abuja will also help Sao Tome construct an oil refinery and build a deepwater port.

Last year, the two West African nations set up a Joint Development Zone that gives Nigeria a 60-percent share and Sao Tome a 40-percent share of shared reserves in the Gulf of Guinea. Oil cooperation between the two countries has led to a widening of bilateral relations and Nigeria has offered aid to the Sao Tome in the fields of education, transport and finance.