Negotiations in Final Stage with Another Oil Company for Licence to Explore

Science, Technology, Energy and Mining Minister, Hon. Phillip Paulwell, says the Ministry is in the final stages of negotiation with a major oil and gas company, to explore another section of the island to determine the potential for commercial oil and gas.

Mr. Paulwell informed that negotiations with that company are scheduled to end sometime in March, at which point a licence will be granted for exploration of the South East section of the island.

The Minister was speaking to JIS News on the first day of the two-day Future of Energy in the Caribbean Conference, being held at the Jamaica Pegasus Hotel in New Kingston, from February 8 to 9.

Currently, Tullow Jamaica Limited is conducting exploratory work on the south coast of the island, which has been identified in the past as having good frontiers for exploration.

Meanwhile, Finance and Planning Minister, Dr. the Hon. Peter Phillips, told the conference that hedging against oil price increases will continue.

The Minister emphasized that this is necessary, “so that we do not suffer irreparable damage to our balance of payments account or stymie or reverse our economic growth…because of any sharp upward movement in the price of oil.”

On March 12 last year, the Minister announced the imposition of an additional specific Special Consumption Tax (SCT) of $7 per litre to be imposed on petrol, in order to pay for the hedge.

“The hedge is an insurance policy for the country and for the consumer against the prospect of a possible sharp upward movement in the price of oil,” the Minister had said.

Hosted by Future Energy Corporation, a next generation energy company, the conference aims at charting a pathway to energy independence within the Caribbean.

Over the two-days, a number of presentations are to be held from various players in the energy sector, both locally and within the region.