Gabon and Equatorial Guinea progress in island dispute

Offshore staff

(West Africa) - United Nations Secretary-General Kofi Annan says he hopes a border dispute between Gabon and Equatorial Guinea over islands in potentially oil-rich waters would be resolved by the end of the year.

Local sources report Annan met Gabon's President Omar Bongo during an African tour to discuss the disagreement over maritime and land frontiers and the sovereignty of three islands off the Atlantic coast, where foreign oil firms are hoping to strike oil.

The two neighbors, which both already produce oil, have long disputed ownership of Mbanie, a virtually uninhabited 30-hectare island, along with Cocotier and Conga.

The two presidents met with Annan in Geneva in February and agreed to negotiations over the islands.

The Gabonese unit of Royal Dutch Shell says it has rights to prospect the Mbanie zone according to its contract with Gabon for the Igoumou block, but has put the project on hold pending resolution of the dispute.

03/27/06