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Further Reading

São Tomé e Principe

The Democratic Republic of São Tomé e Príncipe consisted of the main islands of São Tomé and Príncipe and several islets (Bombom, Caroço, Rolas, Tinhosa Grande, Tinhosa Pequena, Vabras, and Varoco) in the Gulf of Guinea. Situated offshore Gabon between Equatorial Guinea's Bioko and Annobón, the nation encompassed a total area of 1,001 km2. In 2002, the nominal GDP of São Tomé e Príncipe was estimated to be $55 million, and the population was estimated to be about 170,000.

In 2002, the Nigeria-São Tomé & Príncipe Joint Development Authority was established to resolve problems associated with petroleum exploration in an area of overlapping maritime exclusive economic zones. The treaty that authorized the Joint Development Authority and defined the zone's coordinates had been signed in 2001 after 14 months of negotiations. In 2002, the Government began the renegotiation of existing petroleum agreements it had with Chrome Energy Corp. of the United States (an indirect subsidiary of Chrome Group of Nigeria), which was formerly known as Environmental Remediation Holding Corp. of the United States, ExxonMobil, and Petroleum Geo-Services ASA of Norway to conform with Joint Development Authority strictures.

Sao Tome is optimistic that substantial petroleum discoveries are forthcoming in its territorial waters in the oil-rich waters of the Gulf of Guinea. Sao Tome is at the epicentre of a giant oil field -- up to 11 billion barrels of oil lie under its territorial waters. São Tome, with a population of only 140,000, is being wooed by the US, which has already deployed a military liaison officer as part of the Global War on Terrorism.

An attempted coup d'etat by a few members of the military and the Christian Democratic Front (mostly representative of former Sao Tomean volunteers from the apartheid-era Republic of South African Army) in July 2003 was reversed by international, including American, mediation without bloodshed. The coup plotters won last-minute guarantees on oil resources. The two sides signed an "annex" to an accord which had ended the week-long military takeover. The amendment gives the military a role "overseeing" oil dealings to ensure transparency. Under the annex, a part of the military will have access to all oil information, to prevent corruption.

Sao Tome and Principe is one of the largest untapped oil provinces in Africa and several major oil and gas companies have recently shown interest in this small nation. ExxonMobil Corporation already holds exploration and production rights for multiple blocks through previous agreements. Despite its lack of exploration or production, prospects are good for Sao Tome and Principe. Exploitation of offshore petroleum had been impossible due to a maritime boundary dispute between Sao Tome and Principe and Nigeria. Completion of the Joint Development Zone (JDZ) agreement between the two nations followed a resolution of the dispute, clearing the way for business to commence. The first round of international tendering for offshore blocks in the JDZ has closed and bids will be opened and evaluated beginning in October 2003.

US Facilities

In 2002, Sao Tome President Fradique de Menezes announced that the United States had agreed on establishing of a US Navy base, but the US never confirmed this plan. The US acknowledged visits to Sao Tome for planning talks on security in the Gulf of Guinea. Some US and oil industry officials and Washington energy think-tanks have urged the Bush administration to establish a US naval base on Sao Tome. US relations with Sao Tome are excellent.

In 1992 the Voice of America (VOA) and the Government of Sao Tome signed a long-term agreement for the establishment of a relay transmitter station in Sao Tome. VOA currently broadcasts to much of Africa from this facility. The Station broadcasts Voice Of America programs to all of Africa in six different languages. The Station also broadcasts programs for Sao Tome's Radio Nacional on the island. The Station has a staff of three American officers plus local staff.

In February 2004 the US agreed to finance an $800,000 viability study for expanding the international the airport of Sao Tome and Principe. The deepwater port construction and airport expansion projects are designed to make Sao Tome & Principe more accessible for trade and travel.

The expansion and modernization of the current airport facilities at Sao Tome's airport are necessary for both present and future use. Sao Tome can expect an influx of services requiring use of the airport in the near future as the Joint Development Zone oilfield exploration and development begins, as well as from increased tourism. The Government of Sao Tome & Principe has recognized that improvements are needed for the airport, but the Government lacks a plan and feasibility studies for airport development that address current and future needs of airport users. Present conditions at the airport are adequate by international standards but will not accommodate future growth. The landing strip, terminal, and support facilities are amongst improvement areas that need to be made.

The lack of a deepwater port has increased the cost of imports into and exports out of Sao Tome and hindered economic growth. Currently the island has a shallow draft port in Sao Tome City's harbor, which is only capable of receiving small vessels. Major oceangoing ships are forced to anchor over a mile offshore and small lighter vessels transport items, including containers, to the port's single pier. Once at the pier items are individually offloaded in a small overcrowded receiving area. In the short term, the development of a deepwater port would affect the current inefficient logistical stream and lower costs of importing and exporting goods and commodities. It could also provide facilities and warehouse space for the use of offshore oilfield support contractors. In the long term, the development of a deepwater port could provide moorage, refueling and other services for commercial and other vessels and even support an offshore fishing fleet.