US naval base to protect Sao Tome oil

Sao Tome is one of the world's poorest countries

The tiny island nation of Sao Tome and Principe, off the West African coast, has agreed to host a US naval base to protect its oil interests.

The country holds a strategic position in the oil rich Gulf of Guinea from which the US could monitor the movement of oil tankers and guard oil platforms.

"Last week I received a call from the Pentagon to tell me that the issue is being studied," President Fradique De Menezes told Portugal's RTP Internacional TV.

"This will be good for Sao Tome as it will ensure the future of the country in relation to those that are ambitious and are looking to come to the country when oil is extracted from our waters," he said.

The former Portuguese colony has a very small army on which it spends only $1m a year.

The president was responding to rumours that the US planned to build a air force and naval base after a visit in July by a US General Carlton Fulford, deputy commander-in-chief, US European Command.

"It is not really a military base on our territory, but rather a support port for aircraft, warships and patrol ships so that they can come to this port and stay for some time," Mr De Menezes said.

Oil for sale

Sao Tome and Principe, one of the poorest countries in the world, is made up of two islands with a total population of about 130,000. It lies 240 kilometres (150 miles) off the West African coast.

The islands have not benefited from the high price of cocoa, its major export, because of falling production due to drought and mismanagement.

The US is its second biggest trading partner after Portugal.

A number of US companies are expected to bid for oil exploration concessions in an international tender scheduled for 1 October.

Mr De Menezes said he expected his country to apply for membership of the Organization of Petroleum Exporting Countries (OPEC) within three years.

Economic dependence?

The naval base is expected to have a great impact on Sao Tome's economy.

"It is evident that it will be necessary to construct this port," said Mr De Menezes adding the naval base would also create jobs.

The country's unemployment rate is currently about 45%.

Mr De Menezes declined to provide further details about the planned base.

Some local politicians have expressed fears the base would make Sao Tome and Principe excessively dependent on the US.

The largest US government investment in Sao Tome is the Voice of America relay station which broadcasts to the countries in the region.