Energy Minister Cautiously Optimistic on Jamaica’s Offshore Oil and Gas Exploration

Minister of Energy, Transport and Telecommunications, Hon. Daryl Vaz, has expressed cautious optimism following the latest update from United Oil and Gas regarding offshore hydrocarbon exploration activities.

The company holds a Production Sharing Agreement (PSA), granting it exclusive rights to conduct oil and gas exploration within the Walton-Morant Basin, offshore Jamaica.

Mr. Vaz advised that the entity has completed a surface geochemical survey and shared its preliminary findings. The analysis revealed the presence of C4 and C5 hydrocarbons, specifically butanes and pentanes, in select samples.

“These are positive scientific indicators that suggest the presence of an active petroleum system offshore. Any move to drill would only take place after full environmental and social impact assessment, stakeholder engagement, and relevant permits and Cabinet approval. This is a careful step-by-step process,” he stated.

The Minister was speaking during Wednesday’s (April 15) post-Cabinet press briefing at Jamaica House.

Mr. Vaz emphasised that the Ministry, in collaboration with United Oil and Gas, continues to pursue a disciplined, evidence-based approach, ensuring that all decisions are guided by sound science and aligned with the nation’s best interests.

“They are positive scientifically because they have seen traces. They haven’t seen or touched the real deal. But it’s still important, because that is what will move to the next step. The next step would be to drill one of a possible 14 wells. One well would require a capital investment of between US$60 million and US$80 million,” he informed.

“Now, in the oil business, that’s not big money. It’s big money for us… but not big money in that industry. So, what are the next steps? The next steps would be for United Oil and Gas to [present] those results… to see if they can get any interest by large companies who would then want to invest in drilling,” the Minister added.

Mr. Vaz said based on the survey results and discussions with United Oil and Gas, several companies have already contacted them.

He added that United Oil and Gas is scheduled to hold discussions with major oil companies in the United States this week.

“So, again, my commitment is to keep Jamaica advised every step of the way… and I can indicate, based on my discussions, that if they were to raise the capital to drill, that wouldn’t happen until late 2027, going into 2028.

“So… once there is an agreement for an investor to partner with United Oil and Gas, they would have to come back to the Government of Jamaica to renegotiate a drilling component. Right now, it’s just an exploration licence that they have,” Mr. Vaz said.