JIS News

Cabinet has given the go-ahead to the Switzerland-based oil company, Glencore International, to lift Nigerian crude oil on behalf of Jamaica.
This oil will then be sold on the world market and the country will receive US 0.25 cents per barrel. Prime Minister, Bruce Golding made the announcement at his first post-Cabinet press briefing held at Jamaica House on (Sept.17).
In explaining the decision to award the contract to Glencore International, Mr. Golding said that oil lifting is scheduled to take place next month, “and we took that decision as a matter of urgency, so as not to loose the opportunity for the October lifting”.
He noted that the government had put out a tender and Glencore International made the highest bid in terms of price offered. Glencore made a bid of US 0.25 cents per barrel as opposed to the previous US 0.12 cents per barrel from the Dutch oil company, Trafigura Beheer.
“That company was recommended by the National Contracts Commission to be awarded the contract to lift the Nigerian oil,” he added.
Mr. Golding told journalists that he had asked Minister of Mining, Energy and Telecommunications, Clive Mullings to advise him as to whether or not the US 0.25 cents is a competitive figure based on the quality of the oil, but “we could not however, allow that investigation to hold up the signing of a contract or else we would lose the October lifting and possibly lose subsequent liftings.”
Mr. Golding pointed out that the contract is for 12 months and the government will use that time “to see whether or not US 0.25 cents is still cutting it. If it is not cutting it, then we will be able to at least advise ourselves as to what arrangements we could enter into at the end of those 12 months to get the best possible deal for Jamaica.”
Also participating in the briefing were Minister of Information, Culture, Youth and Sports, Olivia Grange and Parliamentary Secretary in the Ministry, Warren Newby.

Skip to content