Oil talks stall

After a few days of intense negotiations, talks on exploration rights in Eastern Lopongo stalled on Monday night. The parties decided to adjourn and reconvene the meeting in 10 days, after secretive discussions in Lopongo capital Banda failed to produce a deal between the government and the French-Italian petroleum giant Canistracci Oil.
According to people close the parties, there would be a few roadblocks to prevent an agreement. The fall in oil prices in recent weeks have complicated the financial aspects of the deal: when president Kwanto Sei Bruto first considered Canistracci Oil approaches, crude prices were hovering at $105-$110 per barrel; by Tuesday, Brent prices had dropped below $59. Canistracci Oil offered a deal around current market values, while Lopongo government is insisting for a target price of $85-$90.
A second, thorny issue is represented by the share of revenues for local administrations. Canistracci Oil is calling for an inclusion of Port Durame's authorities in the deal, in order to minimize local opposition to its operations. Kwanto Midevi, minister of economic development, strongly opposes the request, but Mobuto Labomba, governor of the Port Durame province, made clear he would resist any deal not including a share of revenues for its district.
Finally, Canistracci Oil is asking for a some latitude in ensuring its own security procedures, included the deployment of company's security guards. The government would prefer to maintain control of the security forces in the strategic region.
Canistracci's representative will return to Europe for further consultations, but are expected to return to Banda in the second week of November for trying to strike the deal that thus far has remained elusive.