Sao Tome & Principe Targets 2026 Production Sharing Contracts for Licensing Round Blocks

Sao Tome & Principe aims to finalize production sharing contracts (PSCs) by the end of 2026 for three ultra-deepwater blocks currently offered under a fast-track licensing round. According to Alvaro Silva, executive director of the state oil company and regulator ANP-STP, the country expects to negotiate these contracts by October or November 2026, following the bid deadline at the end of the current month. The blocks in question—7, 8, and 9—are located off the islands' west coasts, an area that has drawn increased industry attention after Shell's Falcao-1X wildcat in Block 10, north of Sao Tome, confirmed a working petroleum system in 2025. This discovery, along with Galp Energia's Jaca-1X wildcat in Block 6 east of Sao Tome in 2022, has significantly boosted interest in the western plays, with many companies approaching the agency since 2024.

Regulatory Framework and Industry Interest

Silva emphasized that the country's legislation mandates a competitive bidding process for oil and gas acreage, preventing direct negotiations. Once companies express interest in a block, it must be offered through a licensing round, as was done for blocks 7, 8, and 9. Current active companies in the archipelago—including Shell, TotalEnergies, Petrobras, Galp Energia, Kosmos Energy, and Oando—are eyeing these blocks, alongside new entrants. Silva noted that industry feedback indicates confidence in the presence of oil in Sao Tome & Principe, with companies committed to staying. Planned offshore activities include a seismic survey by Shell in Block 4 in 2027, and TGS may gather new multi-client data in 2026.

Future Wealth Management and Governance

Looking ahead to potential financial inflows from a commercial oil project, Silva expressed optimism that the country could manage these resources "a little better than other countries," citing a legal framework designed for good governance and best practices. However, he cautioned that the handling of this revenue stream will ultimately depend on how leaders "take care of this wealth." The update was provided during an exploration panel at Upstream's Global Development & Decarbonisation Week 2026, a free virtual series held from 15–19 June 2026, exploring the evolution of oil and gas projects across regions, technologies, and markets.