São Tomé and Príncipe rejected bids for its three offshore oil blocs after its 2026 licensing round attracted only Brazil’s Petrobras and Nigeria’s Oranto Petroleum.
The decision surprised many because the island nation of Central Africa had offered investors unusually generous terms, including up to 85 per cent ownership of the oil blocs.
Ordinarily, the government had expected generous terms to attract several competing investors, enabling them to negotiate better deals and maximise national benefits.
Disappointingly, only two companies, Petrobas and Oranto, submitted bids, leaving the authorities without sufficient competition to determine the true market value of the assets.
Petrobras is Brazil’s state-controlled energy company, with assets exceeding 180 billion dollars and major investments across Brazil’s offshore pre-salt fields and international operations.
