Publication: Country Economic Memorandum for Sao Tome and Principe - Background Note 4: Update on Oil and Gas Exploration and Production in São Tomé and Príncipe
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2019-06-26
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2019-07-29
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Sao Tomé and Príncipe is surrounded by oil-producing neighbors, but haven’t found commercially viable oil in its territory so far. São Tomé and Príncipe (STP) is surrounded by major oil producing countries including Nigeria, Equatorial Guinea, and Gabon, but there has not been any commercial oil or gas discoveries in the country’s waters yet. STP is exploring for oil in two different zones under different jurisdiction: the Joint Development Zone (JDZ) with Nigeria, and the Exclusive Economic Zone (EEZ). There are talks as well for a joint exploration zone with Equatorial Guinea. The purpose of this note is to update the status of oil and gas exploration in STP and provide a probability and timeline for eventual discoveries and commercial production. The answers to these questions are key to the country’s long-term development prospects, as it would alter dramatically STP’s development path.
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“de Vivies, Patrice. 2019. Country Economic Memorandum for Sao Tome and Principe - Background Note 4: Update on Oil and Gas Exploration and Production in São Tomé and Príncipe. © World Bank. http://hdl.handle.net/10986/32136 License: CC BY 3.0 IGO.”
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Publication Country Economic Memorandum for Sao Tome and Principe - Background Note 15(World Bank, Washington, DC, 2019-06-26)Oceans are an important source of wealth, at least 3 to 5 percent of global GDP is derived from the oceans, but their overall health is reaching a tipping point. Close to a third of fish stocks are fully fished or overfished, climate change is impacting coastal and marine ecosystems through a variety of vectors, unbridled development in the coastal zone is causing erosion, widespread desalination in semi enclosed seas is threatening fauna and flora alike, and marine pollution, particularly from land-based sources is reaching such a proportion that its impacts cannot even be accurately measured. The role of healthy oceans in stabilizing climate and keeping the planet cool is now better understood, and increasingly given the prominence and visibility it deserves in the global action arena. It is also known that business as usual in the different economic sectors associated with coastal and marine ecosystems will have great environmental and social impacts, which are expected to disproportionally affect vulnerable groups of the population, particularly women and girls. This is reflected in Sustainable Development Goal (SDG) 14 - Life Below Water, which calls to conserve and sustainably use the oceans, seas, and marine resources for sustainable development. In this context, the concept of the Blue Economy is particularly relevant and applicable to STP. Different institutions have different definitions of the Blue Economy, which is understood by the Bank as the sustainable and integrated development of oceanic sectors in healthy oceans. There is growing recognition that overfishing, marine pollution, and coastal erosion, among other issues, are pushing oceans to a tipping point to the detriment of the millions who depend on healthy oceans for jobs, nutrition, economic growth, and climate regulation. Central to the Blue Economy approach is the recognition that social benefits should be maximized over the long-term, ensuring that the economic drivers that result from the sustainable use of ocean resources are maintained.Publication Country Economic Memorandum for Sao Tome and Principe - Background Note 14(World Bank, Washington, DC, 2019-06-26)The purpose of this analysis is to provide a snapshot of exclusion based on SOGI in São Tomé and Príncipe (STP) and the opportunities for SOGI inclusion especially in the tourism sector. The main questions for the reader to consider are: Why is the World Bank involved in SOGI? How can STP benefit from SOGI inclusion? What can be done to ensure SOGI inclusion in STP? Finally, the central takeaway from this analysis is that excluding sexual and gender minorities negatively impacts economic development and poverty reduction, whereas including them is beneficial to economic development and poverty reduction. The theoretical argument is that exclusion costs money. Exclusion based on sexual orientation and gender identity often begins as early as the primary school years and continues in the workplace, as well as more broadly in the economy and in society. As a result, sexual and gender minorities face significant stigma that prevents them from realizing their productive potential and limits their ability to contribute to the economy and to society. When anyone is excluded from the labor force based on indelible personal characteristics unrelated to ability, such as sexual orientation or gender identity, both the economy and social cohesion suffer.Publication Country Economic Memorandum for Sao Tome and Principe - Background Note 1(World Bank, Washington, DC, 2019-06-26)The purpose of this background note is to give an overview of the literature on output volatility and economic growth, assess output volatility and its impact in São Tomé and Príncipe (STP). This note is organized in four sections, besides this introductory part. The second section reviews the literature on the impact of output volatility on economic growth. The third section discusses different measures of volatility, calculating volatility for STP across different periods, and compares them to peer countries. The last section offers some policy recommendations. 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The first section describes the history of land tenure in the country. The second section focuses on the positive impacts that the establishment of a land information system can have for rural development and the tourism sectors and describes the institutions in charge of land management and related legislation. The fourth section identifies the main inefficiencies in land administration affecting economic growth. The final sections outline the activities currently in execution to address such issues and present policy recommendations.Publication Country Economic Memorandum for Sao Tome and Principe - Background Note 6(World Bank, Washington, DC, 2019-06-26)The importance of a good regulatory and institutional environment for business creation and growth is well established. Good regulations and a level playing field are particularly important to maximize opportunities for private investment in small island states like São Tomé and Príncipe, which tends to be constrained by the lack of economies of scale and distance to markets. Burdensome regulations can hamper the competitiveness of export-oriented sectors, which are essential for São Tomé and Príncipe’s sustainable growth and job creation. Moreover, sectors that depend on natural or cultural assets, such as tourism, require good quality regulations and planning to protect those assets. Improving the regulatory environment is an important factor, together with better skills, connectivity, and infrastructure, to strengthen the competitiveness of São Tomé and Príncipe’s economy. Accurate data on the size and composition of the private sector in Sao Tome and Príncipe is lacking, but existing information shows that it is dominated by microenterprises in commerce and services. The ongoing enterprise survey will provide insights on the characteristics and main challenges of São Tomé and Príncipe’s firms, while an updated business census, which is planned with support from the World Bank, will give a broader view of the private sector. Data from the National Statistics Institute (INE) shows that there are only 14 companies with more than 100 employees, including the utilities and transport sector SOEs, and 80 percent of firms for which data is available have less than five employees. Most firms are concentrated in the commerce, construction, and tourism sectors. While additional analysis will be necessary to identify the factors contributing to the small size and sophistication of SãoTomé and Príncipe’s firms, the regulatory environment may be among them as it affects entry and operating costs, access to finance, and ability to resolve commercial disputes.
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