The Bahamian Government will allow exploratory oil drilling ...to determine whether there are commercial quantities of oil in The Bahamas ...prior to any referendum

Exploratory Oil Drilling Before Any Referendum

 

By NATARIO McKENZIE

Tribune Business Reporter
nmckenzie@tribunemedia.net
Nassau, The Bahamas



THE Government will allow exploratory drilling to determine whether there are commercial quantities of oil in the Bahamas prior to any referendum, a Cabinet Minister said yesterday.

Kenred Dorsett, minister of the environment and housing, said it was unlikely that there would be any referendum on oil exploration in the Bahamas prior to the 2015 second half.

“The fact that oil exploration is being pursued so seriously and systematically in such very close proximity to the Bahamas dictates that we hasten our own decision making process as it pertains to oil exploration and environmental regulation here in the Bahamas,” Mr Dorsett said in a statement released yesterday.

“Accordingly, my Ministry, supported by the Office of the Attorney General, has prioritised the task of strengthening and modernising our Petroleum Regulations, ensuring that they reflect international best practices and standards. These regulations will combine best practices identified in a variety of leading jurisdictions, including the United Kingdom, Norway, Australia, Trinidad and Tobago, the United States (as modified after the Gulf of Mexico incident), and Greenland.

“They will reflect the most up-to-date risk management practices and mandate the use of the best technology suitable for our conditions. These new regulations will also establish appropriate oversight and monitoring protocols to ensure that offshore exploration is conducted responsibly, and with a high regard for safety and environmental vigilance, having particular regard to the need to ensure human safety and, as I stated earlier in this statement, to preserve the beauty of our waters and beaches and our marine life and eco-systems.

“The new regulations are substantially complete already and will be presented to Cabinet very shortly to preserve the beauty of our waters and beaches, and our marine life and eco-systems.”

Mr Dorsett said the Government was not going to conduct a referendum without ascertaining whether there were commercial quantities of oil in the Bahamas. “The new regulations would be in place well ahead of any oil exploration,” he added. “Exploration drilling is, of course, the only way the Bahamian people will be able to get a scientific answer to the burning question as to whether petroleum reserves even exist in commercial quantities in our waters.

“Obviously, we are not going to have a referendum on a hypothetical proposition. We are not going to ask the electorate to vote on whether they want to develop an oil industry if there is no oil to begin with. Thus, we need to find out first, through exploration drilling, whether we do indeed have oil in commercially viable quantities. If we don’t, then obviously it would be completely pointless, and a shameful waste of public funds, to have a referendum on the matter.”

Mr Dorsett said if commercial quantities of oil were discovered in the Bahamas, the Government would engage the Bahamian people in an extensive public information programme to ensure all important facts were made available before a national referendum.

“This public consultation process would take place throughout the country, and would ensure the widest possible dissemination of important information about the discoveries and their potential significance,” he added.

“As part of this public information process, the Bahamian people would also receive a timeline for production and, very importantly, there would have to be a national dialogue on all important aspects of the question, including how oil revenues should be used to develop our nation and our people in ways that would probably not be achievable under current revenue streams from tourism and other existing industries.

“Estimates suggest that exploration data, sufficient to answer the question of whether we have petroleum reserves in commercially viable quantities, would probably not be available until the latter part of 2014 or early 2015. Therefore, allowing for the public consultation process I have referred to, it is unlikely there would be any referendum on the oil development question before the second half of 2015.”

March 11, 2013

Tribune 242

Bahamas Blog International

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Business leaders in The Bahamas are urging the Bahamian government to treat the defeated gambling referendum as a learning experience ...for the upcoming oil drilling referendum

Govt urged to tackle oil vote ‘differently’

Analysts say proposed legislation prior to referendum would build consensus, eliminate politics and improve education over exploratory drill

JEFFREY TODD
Guardian Business Editor
jeffrey@nasguard.com
Nassau, The Bahamas

Business leaders are urging the government to treat the gambling issue as a learning experience for the upcoming oil drilling referendum.

While the "Vote No" campaign was victorious on Monday, observers have noted that low turnout and general apathy impacted the democratic process.

The government was frequently criticized for being unclear in the referendum questions and failing to introduce specific legislation to back up the possible legalization of gaming.  The vote also became highly politicized, prompting rival parties to endorse opposing views.

For an upcoming oil drilling referendum, a decision that could indeed reshape the country's economy, the process must be handled "in a completely different way", according to Richard Coulson, a well-known financial consultant.

"The government will need to go to great lengths to explain what the issues are," he told Guardian Business.

"Oil drilling is not a moral or religious issue.  It will be a matter of whether you can explain the economic advantages and technical reasons why the environment can be protected.  If those points can be explained, there should be no rejection."

In the nation's young history, both referendums brought to the people have been strongly rejected.

Coulson said that changes are needed to ensure referendums occur properly without placing the country's future at risk.

On the issue of oil drilling, he urged politicians to arrive at a consensus prior to the vote by crafting a detailed proposal and piece of legislation on how the process would be administered.

Member of Parliament for East Grand Bahama Peter Turnquest agreed that future referendums need parliamentary involvement.

Turnquest said that the current government tried to "push" the idea of gambling on Bahamians, believing that people would simply vote yes.  The former head of the Grand Bahama Chamber of Commerce said specific legislation must go through a "period of education" whereby the public is taken through the process.

"Anything short of that will result in a similar kind of situation," he added.

Indeed, a negative result in regards to oil drilling is the last thing the Bahamas Petroleum Company (BPC) wants, not to mention its legions of international shareholders.

As Bahamians voted in the gambling referendum, investors in BPC on the London Stock Exchange (LSE) watched keenly and speculated on when a vote on oil exploration could occur.

Shares of BPC ended yesterday's trading at 5.51 pence.  That compares to around 16 pence per share back in February 2012.

The Progressive Liberal Party (PLP) pledged a referendum on the subject prior to coming into power last May.

At the time, Opposition Leader Perry Christie drew headlines when he confirmed that he was a legal consultant for Davis & Co., the law firm that represented BPC.  Meanwhile, the Free National Movement (FNM) famously revoked BPC’s licences during the election.

These licenses were reinstated by the PLP after coming into power.

It has been speculated that a referendum on oil drilling could occur by the summer, although no formal timeline or process has been announced by government.

January 30, 2013

thenassauguardian

Bahamas Blog International

...the report on the potential for the Bahamas Petroleum Company (BPC) to drill oil in The Bahamas... and the impending referendum question on drilling for oil in The Islands

Oil Referendum Before BEST Report

By Kendea Smith
The Bahama Journal
Nassau, The Bahamas

Before the Bahamas Environment, Science and Technology (BEST) Commission completes its report on the potential for the Bahamas Petroleum Company (BPC) to drill oil in The Bahamas, the government will present an oil referendum to Bahamians, according to Environment Minister Kenred Dorsett.

“That is my understanding,” the minister told the Bahama Journal recently. “It is my understanding that the matter is going to be put to referendum when it comes to drilling but they are licensed and there is an existing renewal framework, which still gives me the ability to have discussions with them regarding the terms of renewal and so those discussions are being had.”

He continued, “Clearly BPC is aware of the policy by the Government of The Bahamas is to proceed to the referendum the question of drilling. They understand that and they have been very cooperative.”

BPC has reportedly met all of its licensing requirements for oil exploration.

However, Minister Dorsett said the company still has some loose ends to tie up.

“There are issues that the Bahamas Environment, Science and Technology Commission have raised with them. The advice that I have been given is that some information that has been forthcoming – some of it not all of it,” he said.

“But we remain in dialogue with BPC in relation to its application for renewal and I think that over the next coming months those discussions will probably be more frequent. But they are in contact with the BEST Commission so I will be awaiting further advice from that body.”

Minister Dorsett said there is currently oil drilling legislation on the books.

However, he said the question is if whether or not the regulatory framework in place for oil drilling is sufficient.

“We’ve had numerous discussions with the director of legal affairs in the Attorney General’s Office regarding the regulatory framework that we hope to advance in relation to oil exploration and drilling and hopefully making some significant changes to the regulatory environment, which I think will not only provide better protection but I think enhance the regulatory generating opportunities for the country as a whole in the event it is something that the people of the Commonwealth of The Bahamas decide on,” he said.

BPC officials say the country can make $30 billion a year if it engages in oil drilling.

Prime Minister Perry Christie has said that an oil drilling referendum will be put to the Bahamian people next year.

13 November, 2012

Jones Bahamas

Bahamas Blog International