Public to have say on oil operations

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamian people will determine the fate of any commercial oil discovery in this nation's waters, a Cabinet minister pledged yesterday, adding that the country is at "a crossroads" over the issue.

Romauld Ferreira, minister of the environment and housing, told Tribune Business that The Bahamas had reached the stage where it "needs to know" if the Bahamas Petroleum Company's (BPC) decade-plus exploration work will translate into the discovery of commercial oil fields below the nation's seabed.

Emphasising that BPC's first well is exploratory, and no discovery has been confirmed, Mr Ferreira did not commit to holding a referendum on oil drilling in Bahamian waters should the company prove successful.

The former Christie administration had promised to hold such an exercise in the event of a commercial discovery so that the Bahamian people could decide whether to pursue oil exploration in Bahamian waters, but Mr Ferreira yesterday argued there were "many routes" through which the electorate can express their will.

Pledging that any find would be immediately disclosed to the Bahamian people, the minister said the Minnis administration will "take our instructions from them" on how to proceed should BPC strike "black gold".

"The exploratory well that is being contemplated will determine if oil is there," Mr Ferreira told Tribune Business. "Right now, according to the science, we can narrow it down to a 35-40 percent possibility, but at some point you have to drill a well. We are at that point.

"The relationship we have with the BPC organisation was in train when we came to office. This is not something new; it's a continuing obligation that we met and it has tremendous implications. The big rub is: Do we ignore the fact we have oil here, and do we - or do we not - explore for it?

"The other big issue that comes to a head if oil is found is do we proceed to commercial exploration and drilling, and what happens to that money? Does it go into the sovereign wealth fund? We essentially have the country at a crossroads, but I hasten to add that no oil has been found," the minister continued.

"This government is committed to full transparency, and if oil is discovered we'll disclose it to the Bahamian people and take our instructions from them as to the way forward."

The last Christie administration promised to stage a referendum on whether to approve commercial oil exploration within The Bahamas' waters should BPC prove successful, but matters never reached this stage before it was voted out of office in May 2017.

Mr Ferreira was cool towards staging a referendum, telling Tribune Business that there were other methods for determining "the will of the Bahamian people". He added: "I am stressing that oil has not been found yet, so it's a little cart before the horse. We remain cautiously optimistic.

"There are other ways to gauge the will of the Bahamian people. A referendum is one of many tracks. One thing that is assured is that we will engage the Bahamian people on the way forward."

Describing the Bahamian people "as a mosaic" of multiple different views and interests, Mr Ferreira said he respected environmentalists' opposition to any type of oil exploration in this country's waters.

"I think Bahamians are excited that this is a whole new industry; most Bahamians I meet are," he added. "Oil is a very emotive issue. There are some Bahamians resolutely opposed to oil, and I respect that position, but like most governments we strive for the utilitarian approach, which is to do the greatest good for the greatest number. Everything has to be looked at holistically to make the correct determination."

BPC is aiming to drill its first exploratory well by end-April 2020 in waters some 100 miles south-west of Andros, and close to the maritime boundary with Cuba. Mr Ferreira's ministry paved the way for the explorer to proceed by recently approving its Environmental Authorisation.

Pointing out that commercial oil discovery will create an entirely new industry for The Bahamas, and a new natural resource, together with a significant revenue stream for the Government, the minister reiterated that the country faces a choice between ignoring the possibilities or finding out if the potential exists.

"We are essentially tourism, financial services and fisheries," Mr Ferreira told Tribune Business. "The country needs another industry. We have to make a decision. Are we going to find out if it exists in commercial quantities? The real fundamental issue at play here is: Do we have oil? That is the $1bn question everyone wants answered. We have to drill a well to make a final determination."

BPC's first exploratory well, named Perseverance No.1, is targeting a sub-sea structure in which up to 800m barrels of oil could be held based on seismic testing and other geological studies.

If the presence of oil is proven at that location, the oil explorer believes close to 2bn barrels would likely be present in a surrounding field that stretches for 80 kilometres, taking the discovery "up to the field size they're finding in Guyana".

Mr Ferreira added that the Government is "not enthusiastic about issuing offshore drilling licenses" such as those possessed by BPC, adding that it was legally mandated to honour them upon taking office. He added that it was more favourable to what he described as the "mixed merits" of onshore oil exploration.

Comments

ThisIsOurs says...

"*Bahamian people, the minister said the Minnis administration will "take our instructions from them" on how to proceed should BPC strike "black gold".*"

and therein lies the problem. You should be taking instruction from the Bahamian public whether or not theres black gold. the wait is another cop out...

clearly hoping to fly around the family islands and trick hungry people with images of all the wealth they'll get if they support drilling.

Posted 12 March 2020, 9:31 a.m. Suggest removal

proudloudandfnm says...

So BPC is investing all this money and they don't already know if they'll be allowed to harvest if oil is found? Huh? Somehow I doubt this....

No way a company would invest millions in a scenario like that. They would most certainly have already secured the right to drill if oil is found....

Someone lying....

Again...

Posted 12 March 2020, 10:35 a.m. Suggest removal

concerned799 says...

Why we need a Freedom of Information Act on the double!

Posted 13 March 2020, 3:33 a.m. Suggest removal

Well_mudda_take_sic says...

Romauld Ferreira has bought into a lot of shiite fed his way by the very sleazy James Smith who has close ties to BPC. But that should not be surprising. Ferreira is after all the environment minister who bought into Equinor's story that their major oil spill in Grand Bahama killed only two birds and one goat!

Posted 12 March 2020, 10:53 a.m. Suggest removal

Bahama7 says...

Hopefully BPC get drilling and go into full production.

This will be great news for the dying economy in the Bahamas.

Posted 12 March 2020, 10:57 a.m. Suggest removal

Porcupine says...

Idiot.

Posted 12 March 2020, 11:21 a.m. Suggest removal

momoyama says...

Amen

Posted 12 March 2020, 1:17 p.m. Suggest removal

momoyama says...

Does it occur to you that the government is this minute flouting a 7 million tourist figure for last year (the highest in our history) and on the other hand claiming to be broke and suffer from low growth? Is it not clear that the only reason for this is NOT a dying economy but rather policies that minimize the beneficial impacts of economic activities taking place in the Bahamas, through idiocy like VAST concessions and permitting enclave ownership of our tourist economy by cruise companies? Do you not consider that the filthy and corrupt oil industry will simply be treated in the same way (except worse) and benefit even fewer people, while screwing our environment and with it our long term economic viability?? If not, you are truly a moron.

Posted 12 March 2020, 1:21 p.m. Suggest removal

Porcupine says...

Thank you for your honest and accurate assessment here. This is painful to watch. The Minister of the Environment should resign or be replaced for his flippant and irresponsible remarks.

Posted 12 March 2020, 2:20 p.m. Suggest removal

B_I_D___ says...

Would this be the same say that we had with the gambling houses?

Posted 12 March 2020, 1:50 p.m. Suggest removal

TheMadHatter says...

Probably so. I keep informing Bahamians at every encounter with them - that they are essentially slaves here. I beg them to show the government that they are not fooled into thinking they are real citizens living in a democracy - by BOYCOTTING all Independence Day celebrations or activities whether public or private. Show them that we are not stupid.
But - every year - there are throngs of people marching and appearing to be happy.
I suppose if the slaves are happy and truly ignorant of the fact that they have no lives, are literally walking dead like zombies - then it doesn't matter.
If they are happy - they are happy. Why should we bother them?

Posted 12 March 2020, 2:27 p.m. Suggest removal

joeblow says...

Gives new light to the saying that ignorance is bliss!

Posted 12 March 2020, 2:39 p.m. Suggest removal

TheMadHatter says...

"..."The other big issue that comes to a head if oil is found is do we proceed to commercial exploration and drilling, and what happens to that money? Does it go into the sovereign wealth fund? We essentially ..."

Sir - there IS NO Sovereign Wealth Fund. If I am wrong, tell us the balance now in that Fund and when the first deposit was made historically, and from whence each deposit into it came.

Also tell us, how you are NOT breaking the law, by not putting funds into the Consolidated Fund as required by the Constitution.

IF THERE IS A VOTE ON OIL, I will vote "NO" unless there is a part of the law that requires a separate "numbered" account (not account) - in which all deposits and withdrawals are made public on the govt website - updated weekly, and withdrawals must say exactly where they are going.

Of course, we have a law like that now - which says that MPs have to disclose their sources of wealth - and many of them do not - and nothing happens to them. So I suppose my idea is nonsense. They simply won't tell us the ins and outs of the Fund and what can be done about it? Nothing.

As citizens, our job is to pay taxes, ink our fingers, and shut up.

Posted 12 March 2020, 2:31 p.m. Suggest removal

shonkai says...

With oil process at a record low, why bother, unless it heals the corona virus which I doubt if you see the number of cases in the middle east

Posted 12 March 2020, 4:31 p.m. Suggest removal

sheeprunner12 says...

Oil is less likely to impact the sovereign wealth of Bahamians ……… almost like the tons of lost gold from Spanish galleons at the bottom of our seas

Posted 12 March 2020, 6:44 p.m. Suggest removal

concerned799 says...

The public must make clear any oil exploration is unacceptable. Besides an exploration well can be the most dangerous, as the pressure is so high eg. its been building since the time of the dinosaurs. The BP Mocando oil disaster in the Gulf was on exploration NOT production! They capped the well, and the concrete did not hold. It would have made no sense to cap a well that was in production.

Posted 13 March 2020, 3:37 a.m. Suggest removal

Porcupine says...

Great points.

Posted 13 March 2020, 8:22 a.m. Suggest removal

DWW says...

whats the bahamas cut on this? therein lies the real question. if we get 80% while BPC gets 20% and they still want to go ahead with it, I say sure. that way the bahamas will have funds to clean up afterwards.

Posted 13 March 2020, 8:39 a.m. Suggest removal

Porcupine says...

Sorry DWW, that does not follow.
The vast majority, and 100% of the darker hued people's countries, have not had anywhere near the benefit of these deals. A handful of people get paid off, while the rest of the country suffers due to chemical contamination, destruction of their food sources, economic hardships, and increased corruption in government. There is not an example in the world where "the people" have benefited in the short run. We already know that that fossil fuel industry as a whole has exemplified the wanton destruction of the planet without a care given to sustainable civilization.

Posted 13 March 2020, 11:06 a.m. Suggest removal

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