ExxonMobil May Get 7-Day Grace Period, Reader Says

A reader has written to take issue with my editorial "Signs of Change," on the erhc.blogspot.com site, and in doing so left behind what reads to me as useful analysis.

If correct, the comment by muktawdadi indicates that XOM could get an additional seven-day grace period if it fails to exercise its 25 percent preferential options in Blocks 2 through 6 of the Nigeria-Sao Tome and Principe Joint Development Zone.

Muktadawdi also indicated that ExxonMobil is not the key reason the awards have been so long delayed, and that the PSC for Block 1, which has been signed but but not paid for, is held up due to boundary changes that were required - and adjustments in acreage holdings by several majors that in turn were affected.
He (or she) writes:

As for the PSC on block 1: the delay relates solely to the time it has taken Nigeria finally to sign into law and gazette boundary changes with the JDZ, and to secure waivers from Total, Petrobras and South Atlantic for acreage previously in Nigerian block 246 and now in JDZ block 1.

That process was complete last week. Chevron Texaco, ExxonMobil and Energy Equity Resources/Dangote (or perhaps Afren, which claimed in its London IPO on Monday to have a deal on half Dangote's stake and tripled in a day) have until second week of April to pay the $123m signature bonus.

On the 2004 JDZ licensing round - ExxonMobil's 30-day notice for exercising its options closes on 18th March. It is very likely they will receive a further 7-day grace period. If by then the company has not indicated a choice, the JDA will conclude that Exxon has chosen not to exercise and call a JMC meeting - which, depending on logistics, may happen before the end of the month.