Lopongo government to discuss exploration with French oil giant

A delegation of top managers from the French-Italian oil giant Canistracci Oil will meet Lopongo officials in Banda next week, to discuss exploration rights in the eastern part of the country, according to a spokesman of the company. On Friday, rumors about a move by Canistracci Oil sent the stock up 7% at the Paris Bourse, where the CAC index closed the day up 4.7%.

It is not clear yet what this negotiation implies for the political equilibrium in Lopongo. A few months back, ouvertures by British and American oil interests were rebuffed with a strongly worded statement by president Kwanto Sei Bruto. The president's statement marked a sharp departure from the generically pro-Western stance that Lopongo government held for several years.

According to some analysts, a deal with Canistracci Oil will reaffirm the historical bond between Lopongo and France. The relationship between the two countries became lukewarm a few years back, when president Sei Bruto rejected a French request to host a French Foreign Legion military base on Lopongan soil. Other observers interpret Sei Bruto's move as part of the ongoing, hidden power struggle with the Makeni-dominated political leadership in the East, which may favor the British and American oil interests already established across the border in Nigeria.