Govt reopens drilling for oil
The second Offshore Licensing Round for oil drilling off the coast of Barbados will be re-opened by the government in about three weeks. It was put on hold in December.
The round was supposed to start on December 1, 2022, but the government said it would start again in the first quarter of 2023.
In a statement, the Ministry of Energy said that a number of companies had asked for more time to look at land and data. The government said that this would also make it possible to change the laws and licensing systems, which would help the country “improve efficiency and make it easier to do business” in the sector.
During her Budget presentation on March 14, Prime Minister Mia Mottley said, “I expect the new round to happen in the second week of April, and this new push will help and speed up the processes and direct state-to-state negotiations with the amendments to come to Parliament.”
Mottley said that the recommended changes to the Offshore Petroleum Act have already been approved by the Cabinet. These changes should make it easier to start the new offshore bidding round.
She said that officials from Scotland are expected to give technical help in the area of offshore wind, with help from the International Finance Corporation (IFC).
Mottley said that based on what they know so far, there could be as much as 13 billion barrels of oil or 42 trillion cubic feet of gas that hasn’t been found.
“But the truth is, even if you have that total amount, the 3-D seismic work will tell you what you can get right away, so I don’t count my eggs before they hatch,” she said.
About 1,600 barrels of oil are made on land every day in the country right now.
Around the middle of last year, the government said it was going to put 22 blocks in Barbados’ waters up for bid.
