The commercial viability of over 500 million barrels of crude oil reserves stranded in the Nigeria–São Tomé and Príncipe Joint Development Zone (JDZ) has been called to question, as the region is yet to produce its first oil 17 years after discovery.
In fact, the JDZ, where crude oil was expected to be drilled, is on the verge of collapsing, just as the possibility of commercial deposits of crude oil in the region is becoming gloomy. Already, most International Oil Companies (IOCs) that pushed for drilling rights in the region have all moved away, alleging that viable oil deposit is elusive in the zone.
The joint development authority was borne out of a treaty between the two countries to jointly develop petroleum and other resources in the exclusive economic zone, which could only be jointly developed to avoid breaching international treaties. The JDZ is along the maritime boundary of Nigeria/São Tomé and Príncipe.
The failure of the Federal Government to get technocrats to run the JDZ productively, as well as, the level of government spending on the venture is beginning to create fresh concerns for experts on the future of the project. The JDZ has lately has also been embroiled in alleged high-level corruption charges, which crippled its daily operations. Guardian\Energy Mix
Pix: Nigeria Sao Tome JDZ
