But arguments have arisen over how to spend the expected financial windfall, leading to increased political tension.

OVERVIEW

One of Africa's smallest countries, Sao Tome and Principe consists of two main islands of volcanic origin and a number of smaller islets.

From the late 1400s Portugal began settling convicts on Sao Tome and establishing sugar plantations with the help of slaves from the mainland. The island was also important in the transshipment of slaves.

The colony's aspirations for independence were recognised after the 1974 coup in Portugal and at first the Movement for the Liberation of Sao Tome and Principe was the country's sole political party. However, the 1990 constitution created a multi-party democracy. The island of Principe assumed autonomy in 1995.

Sao Tome and Principe is trying to shake off its dependence on the cocoa crop. Falls in production and prices left the island state heavily reliant on foreign aid. The government has been encouraging economic diversification and is set to exploit the millions of barrels of oil which are thought to lie off the country's coast.

Promoters of tourism say the islands have plenty for visitors to see. But hurdles include ignorance about the country, the difficulties of getting there, and what some describe as an exaggerated fear of malaria.

FACTS

• Population: 169,000 (UN, 2005)
• Capital: Sao Tome
• Area: 1,001 sq km (386 sq miles)
• Major language: Portuguese
• Major religion: Christianity
• Life expectancy: 62 years (men), 64 years (women) (UN)
• Monetary unit: 1 dobra = 100 centimos
• Main exports: Cocoa
• GNI per capita: US $300 (World Bank, 2005)
• Internet domain: .st
• International dialling code: +239

LEADERS

President: Fradique de Menezes

President Fradique de Menezes

Fradique de Menezes, a wealthy cocoa exporter, was elected in July 2001 with 65% of the vote.

A week-long military coup in July 2003 toppled his government, while the president was on a private visit to Nigeria. Mr De Menezes returned to Sao Tome after an agreement to restore democratic rule was reached with the coup leaders.

Mr De Menezes is the son of a Portuguese father and Sao Tomean mother and had dual citizenship before dropping his Portuguese citizenship so that he could qualify as a presidential candidate.

The president wants revenues expected to be generated from new offshore oil fields to be used to improve public services. He is keen to reduce Sao Tome's isolation and favours stronger ties with West Africa.

Mr De Menezes is the country's third president, after Miguel Trovoada, who served two five-year terms, the maximum permitted by the constitution (1990-2001) and Pinto da Costa (1975-1991).

He studied in Portugal and Belgium and occupied several political and diplomatic positions, including foreign minister and ambassador in Europe.