If you bother to read the BPC specific licence details in the link I sent you the agreement is that the royalties will be between 15 and 25% depending on production levels.
Because of the delays (caused by Bahamas Government) and extensions to the licences nobody knew how much was owed. That's why the Bahamas Government and BPC sat down and agreed a figure. It was then paid.
The delays were for good reason I might add such as the Government and BPC carrying out Environmental Assessments and updating the Petroleum Act to ensure Bahamians benefited from an oil find. All this info is available to the public, there is nothing hidden, no ill will, no inside knowledge..
It is all on BPC website here https://www.bpcplc.com/our-operations/l… and also on Bahamas Government website just google Bahamas Petroleum Act then look at Royalties. It is pretty simple to do the smallest bit of research.
Also if you don't think any taxes will be generated from billions of $ flowing through the Bahamas then I can't help you. This will be game changing for Bahamas if oil found.
A few points: 1. The licence agreements have been extended due to circumstances outside of BPC's control. Negotiations were needed to agree on how much was owed due to the extensions. Once BPC was told how much was owed they paid without delay. 2. The Bahamian public did not bail BPC out. BPC have raised new investment from both Bahamian and International investors this year. Part of this money raised was used to pay the licence fees, part goes towards operating/drill costs. The money did not come from the 'Public Treasury' as you put it. In return for their money Bahamian investors, just like international investors, were given shares in the company. They now own part of the company. You forgot to mention that part. 3. Regarding your point 'None of the profits from BPC's oil drilling will stay in the country'. Please read the licence agreement whereby the Bahamas Government will receive a large portion of the profits through royalties and taxes. As this has the potential to be a substantial amount, ie. USD billions per annum, I think it is exceptionally beneficial to the Bahamian people. 4. As to your point whether you should trust BPC to care about Bahamians and make sure something is in it for the people. Please see points 2 and 3 above. Actually no trust is needed as it is contractual as per the Environmental Policy and Licence Agreements. The Government of the Bahamas has done a very good job of ensuring Bahamians will benefit. 5. BPC have never said they will drill in October. They have specifically said they will drill after hurricane season between Dec 2020 and Feb 2021.
Not sure Ricardo's article could be more factually incorrect.
A few points: 1. The licence agreements have been extended due to circumstances outside of BPC's control. Negotiations were needed to agree on how much was owed due to the extensions. Once BPC was told how much was owed they paid without delay. 2. Bahamian public did not bail them out. Bahamians invested in BPC and therefore own part of the company. Part of this money raised from Bahamian shareholders was used to pay the licence fees. The money did not come from the 'Public Treasury' as you put it. 3. Regarding your point 'None of the profits from BPC's oil drilling will stay in the country'. Please read the licence agreement whereby the Bahamas Government will receive a large portion of the profits through royalties and taxes. As this has the potential to be a substantial amount, ie. USD billions per annum, I think it is exceptionally beneficial to the Bahamian people. 4. As to your point whether you should trust BPC to care about Bahamians and make sure something is in it for the people. Please see points 2 and 3 above. Actually no trust is needed as it is contractual as per the Environmental Policy and Licence Agreements. The Government of the Bahamas has done a very good job of ensuring Bahamians will benefit. 5. BPC have never said they will drill in October. They have specifically said they will drill after hurricane season between Dec 2020 and Feb 2021.
Not sure this article could be more factually incorrect.
NickB. says...
If you bother to read the BPC specific licence details in the link I sent you the agreement is that the royalties will be between 15 and 25% depending on production levels.
On Lulled into a false sense of security
Posted 30 May 2020, 2:13 a.m. Suggest removal
NickB. says...
Because of the delays (caused by Bahamas Government) and extensions to the licences nobody knew how much was owed. That's why the Bahamas Government and BPC sat down and agreed a figure. It was then paid.
The delays were for good reason I might add such as the Government and BPC carrying out Environmental Assessments and updating the Petroleum Act to ensure Bahamians benefited from an oil find. All this info is available to the public, there is nothing hidden, no ill will, no inside knowledge..
On Lulled into a false sense of security
Posted 29 May 2020, 1:44 p.m. Suggest removal
NickB. says...
It is all on BPC website here https://www.bpcplc.com/our-operations/l… and also on Bahamas Government website just google Bahamas Petroleum Act then look at Royalties. It is pretty simple to do the smallest bit of research.
Also if you don't think any taxes will be generated from billions of $ flowing through the Bahamas then I can't help you. This will be game changing for Bahamas if oil found.
On Lulled into a false sense of security
Posted 29 May 2020, 1:11 p.m. Suggest removal
NickB. says...
A few points:
1. The licence agreements have been extended due to circumstances outside of BPC's control. Negotiations were needed to agree on how much was owed due to the extensions. Once BPC was told how much was owed they paid without delay.
2. The Bahamian public did not bail BPC out. BPC have raised new investment from both Bahamian and International investors this year. Part of this money raised was used to pay the licence fees, part goes towards operating/drill costs. The money did not come from the 'Public Treasury' as you put it. In return for their money Bahamian investors, just like international investors, were given shares in the company. They now own part of the company. You forgot to mention that part.
3. Regarding your point 'None of the profits from BPC's oil drilling will stay in the country'. Please read the licence agreement whereby the Bahamas Government will receive a large portion of the profits through royalties and taxes. As this has the potential to be a substantial amount, ie. USD billions per annum, I think it is exceptionally beneficial to the Bahamian people.
4. As to your point whether you should trust BPC to care about Bahamians and make sure something is in it for the people. Please see points 2 and 3 above. Actually no trust is needed as it is contractual as per the Environmental Policy and Licence Agreements. The Government of the Bahamas has done a very good job of ensuring Bahamians will benefit.
5. BPC have never said they will drill in October. They have specifically said they will drill after hurricane season between Dec 2020 and Feb 2021.
Not sure Ricardo's article could be more factually incorrect.
On Lulled into a false sense of security
Posted 29 May 2020, 7:31 a.m. Suggest removal
NickB. says...
A few points:
1. The licence agreements have been extended due to circumstances outside of BPC's control. Negotiations were needed to agree on how much was owed due to the extensions. Once BPC was told how much was owed they paid without delay.
2. Bahamian public did not bail them out. Bahamians invested in BPC and therefore own part of the company. Part of this money raised from Bahamian shareholders was used to pay the licence fees. The money did not come from the 'Public Treasury' as you put it.
3. Regarding your point 'None of the profits from BPC's oil drilling will stay in the country'. Please read the licence agreement whereby the Bahamas Government will receive a large portion of the profits through royalties and taxes. As this has the potential to be a substantial amount, ie. USD billions per annum, I think it is exceptionally beneficial to the Bahamian people.
4. As to your point whether you should trust BPC to care about Bahamians and make sure something is in it for the people. Please see points 2 and 3 above. Actually no trust is needed as it is contractual as per the Environmental Policy and Licence Agreements. The Government of the Bahamas has done a very good job of ensuring Bahamians will benefit.
5. BPC have never said they will drill in October. They have specifically said they will drill after hurricane season between Dec 2020 and Feb 2021.
Not sure this article could be more factually incorrect.
On Lulled into a false sense of security
Posted 29 May 2020, 5:33 a.m. Suggest removal