The government has extended Bahamas Petroleum Company’s (BPC) license period until the end of June 2021 as a result of the global COVID-19 pandemic, enacting a force majeure clause in the license, though the company is still on track to spud its exploratory well in the southern Bahamas next month, well ahead of its June date, the company noted in a statement on its website.
BPC Chief Executive Officer Simon Potter said in the statement that the Perseverance #1 exploration well being drilled next month and into next year is a potential “basin-opening well” with oil values that have rarely been recognized “outside of oil majors”.
“Many shareholders have been extremely patient and have stayed the distance, as has the majority of the management team and we are now in the position to deliver the Perseverance #1 exploration well in compliance with our long-held exploration licenses in The Bahamas,” Potter said.
“At the same time, our activities, in the event of success, have the capacity to be economically transformative for the nation of The Bahamas and could ultimately contribute billions of dollars in royalty revenues to the national treasury, at a time when the dual impact of recent hurricanes and the COVID-19 pandemic have been especially hard-felt by most Bahamians.”
Many other nations in the region such as the United States, Mexico, Trinidad and Tobago, Suriname and Guyana have over the past decade safely and responsibly drilled offshore wells, developed or continue to develop offshore hydrocarbon resources and reaped the economic benefits of an established or a whole new industry. Moreover, these other nations have been able to do so at the same time as seeing growth and development of existing sectors such as tourism.”
There has been widespread opposition to oil drilling in The Bahamas by environmentalists, who are concerned that any kind of oil spill could have a detrimental impact on the natural resources of the country.
BPC has continued to tout its robust insurance take-up to guard against any incidences during its operations.
“As previously announced, BPC has placed an extensive suite of insurance policies to cover drilling operations for Perseverance #1, including an appropriate well control policy,” the company’s statement noted.
“This is as required under the terms of BPC’s licenses in The Bahamas and is in accordance with global best practice standards. The insurance placement, arranged by leading global insurance agent Aon UK Ltd., followed an extensive independent third-party review of BPC’s well plan, design and risk mitigation policies.
“The insurance placement is with a panel of insurers comprised of Lloyd’s of London and international company markets (with all meeting local Bahamian insurance regulations), all of which have a financial rating of “A” or higher from Standard & Poor’s. The policy utilizes internationally recognized wordings and complies with BPC’s contractual obligations, including cover levels considerably in excess of those stipulated as being required by the government of The Bahamas.”
The statement added that it has formally notified the Department of Environmental Protection and Planning (DEPP) of the precise well location and is working with the government’s appointed third-party adviser, international environmental consultants Black & Veatch.
“BPC is fully committed to ensuring safe and responsible operations and has assembled an experienced team of drilling personnel, supported by many of the world’s largest and most respected oil services contractors, with a collective track record of drilling many thousands of wells safely all around the globe,” Potter said.
“We are especially pleased that one of the most modern, technically capable drilling vessels in the world will soon leave port ahead of drilling. In support of this, plans to mobilize both equipment and personnel safely to site have been finalized, funding is in place and we have completed a huge body of work to ensure that best practices have been applied as our health and environmental safety plans and protocols have been developed, contracted and approved.”
The post Govt extends BPC’s license period amid COVID-19 appeared first on The Nassau Guardian.
source https://thenassauguardian.com/govt-extends-bpcs-license-period-amid-covid-19/
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