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JIS News

The Petroleum Corporation of Jamaica (PCJ) has received three applications for licences for oil and gas exploration as at the June 15 deadline for the submission of bids.
Group Managing Director at PCJ, Dr. Raymond Wright said the applications were for ten blocks but noted that there was some overlapping in some of the blocks applied for. A block has a minimum measurement of 2,500 square kilometers.
Dr. Wight told JIS News that the applicants would be informed in another three months or so, whether they were successful in obtaining the licences for onshore and off-shore exploration, after which, the contractor would undertake further seismic and geo-physical work to determine the best sites for drilling. He indicated that drilling could commence within another three to five years.
Dr. Wright, while delivering a pubic lecture at the University of the West Indies’ (UWI) Mona campus recently, had said that a Production Sharing Arrangement would be in place between the PCJ and the successful oil companies, which means that, profits from the field will be split between the contractor and the PCJ.
Additionally, he pointed out that companies would have to bear the exploration expenditure and be reimbursed through a cost recovery process. The arrangement would also see royalties being paid to the government for the oil and gas produced.
He explained that the royalty would be on a “sliding scale in respect of offshore drilling, decreasing as you go into deeper waters”. The highest amount payable for royalty would be 12