São Tomé and Príncipe. According to countryaah, Sao Tome is the capital and one of the major cities within the country of Sao Tome and Principe. The prospect of finding oil under the sea in São Tomé and Príncipe’s territory began to generate large incomes but also social and political problems. Two oil exploration concessions were awarded to an international and Nigerian consortium respectively, giving São Tomé and Príncipe US $ 113 million before even a single drop of oil was found. It is more than what the country would earn for 30 years on its most important export cocoa to date.
Revenue from the oil contracts prompted the public employees’ unions to go on strike for the demand for substantial wage increases, which the government did not consider to be able to agree without failing to fulfill their commitments to the International Monetary Fund and the World Bank, thereby jeopardizing the chances of debt amortization. Disagreement between the President and the government on how to handle the strike and oil contracts led to such difficulties in cooperation that Prime Minister Damião Vaz d’Almeida resigned. He was replaced by Governor Maria do Carmo Silveira.