With growing signs of an early election, the decision on whether to permit further oil exploration in Bahamian waters could very well rest with a Davis administration should the Progressive Liberal Party (PLP) be successful in unseating Prime Minister Dr. Hubert Minnis and the increasingly unpopular Free National Movement (FNM).
Though Minnis and several of his ministers have voiced opposition to oil drilling in Bahamian waters, his administration has yet to state a policy position on the issue.
Instead, Minnis has been “pandering” in repeatedly stating that he is against drilling in our waters, Opposition Leader Philip Brave Davis told National Review.
Davis told us that his administration would be open to extending the licenses of Bahamas Petroleum Company (BPC) “within the established legal regime”.
“First of all, I will address it in accordance with legislation that is in place,” Davis said. “There is a legislative regime in place and we will follow that regime. We will follow the law and have it considered in the context of that legislative regime.”
When pressed on whether a Davis administration would green light BPC – his former client – for further oil exploration, Davis repeated, “Once it conforms with the laws and the regulations that are in place; unless there is something that is outside of that norm, that is what we will follow.”
Six weeks after announcing its first well – Perseverance #1 – failed to yield commercial quantities of oil, BPC announced last week its plan to secure an extension for its four southern licenses to drill another exploratory well in The Bahamas.
“Since announcing the results of the (Perseverance #1) well, the company has had a number of discussions with industry counter-parties in relation to a potential farm-out of the licenses, and the company is now working to formalize and launch an entirely new farm-out process via Gneiss Energy,” BPC said in an exploration update to investors.
It said, “Concurrent with the farm-out process, the company intends to exercise its right to renew the four southern licenses into a third exploration period at the end of the current second exploration period (at the end of June 2021).”
Asked about the matter on Friday, the prime minister told reporters that he had not seen any requests for an extension.
“But I will state again my position with respect to drilling in our waters,” he said. “I am totally against drilling within our sea waters. I think our waters should be preserved.
“We have some of the best fish nurseries in the world…I think it’s essential for us to preserve that, protect our marine resources, protect our waters.
“That’s our tourist product. That’s our food source. That’s our economy. And yes, oil may make a few people rich but look around the world — does it benefit the entire nation? But I do know that tourism benefits all. I do know that our marine life benefits all.
“I do know that the beauty of our resources and our water benefits all and I will do all to protect it.”
Still, we do not know if the Minnis administration is minded to grant the extension.
Asked his thoughts on the prime minister restating his opposition to oil drilling in Bahamian waters, Davis said, “I think that’s pandering. At the end of the day, the fact of the matter is the drilling doesn’t follow that it will be developed. The drilling is to discover whether or not you do have commercial quantities of fossil fuel.
“It doesn’t necessarily follow that you will have to exploit it or develop the field. There are any number of alternative options that have come about in this field that you could still benefit from a find. There are options available but you don’t know that you have an option unless you know what you have.”
Davis asked why the Minnis administration permitted oil drilling if the prime minister is truly opposed to it.
We reminded him that the attorney general and the prime minister stated that the government was legally bound to allow the drilling as it met an agreement in place signed by a previous administration.
But Davis said, “The attorney general himself admitted that they renewed the contract that was in place after an application by BPC. If there was concern, that would have been the opportunity for them to renegotiate the terms under which they would have renewed their project.”
Conflict?
Davis reiterated that his administration would permit oil drilling in our waters if it determines it would be environmentally friendly.
We pointed out the widely held view that there is no such thing as environmentally friendly oil drilling.
“Critics would say there’s no such thing as environmentally friendly oil drilling,” Davis said.
“Well, that’s a view that’s out there, but I would not allow oil drilling that would in any way impact our environment.”
Given his firm’s past relationship with BPC, we asked Davis how he would get around the perception that he is conflicted on the issue.
“I don’t understand where this issue of conflict arises,” he said.
“The company is no longer with our firm. I don’t know why the records of the registry have not been corrected, but the files and the company were turned over many years [ago]. I think it went first to Higgs and Johnson and/or Graham Thompson … and we’ve had no contact with this company in relation to that, not Davis & Co.”
Davis insisted his decision on oil drilling would not be impacted by the fact that he once represented BPC.
“Let me put it this way, it will not,” he said.
“I will not be influenced by the fact that Davis & Co. firm had a relationship with that company from 2006, which is 15 years ago. I would not let that relationship, which has been severed from back then, influence any decision that I would have to make. As I said, any decision made would be in accordance with the law and it would not ignore the benefits to the Bahamian people which would be paramount in my consideration.”
Ahead of the 2012 general election, then Progressive Liberal Party Leader Perry Christie, who had served as a consultant for BPC, sought to address the conflict issue by committing to holding a referendum on oil drilling if elected.
Like so many other pledges, he disregarded this one.
We asked Davis whether his administration would hold a referendum on oil drilling in Bahamian waters.
“I would take that under advisement, but I would not comment at this time as to what I would do in my administration,” he said, obviously careful not to make any commitment that might come back to haunt him.
“I would have to see what circumstance I meet when I am there and there might be some other features that’s compelling to decide to go or not to go.”
In February, Environment Minister Romauld Ferreira told The Nassau Guardian The Bahamas should have a national discussion on whether it should continue to allow exploration for oil in its waters.
Last week, The Tribune quoted him as also expressing opposition to BPC being allowed to drill further.
“I’m not going to be very sympathetic towards it (license extension), but that’s not my call … I would have rolled them out long time. We wouldn’t have been down the road talking about this,” the minister said.
If the decision on the extension is made by the Minnis administration, it would be interesting to see whether the government’s policy position is shaped by the core beliefs of the prime minister and key ministers.
If the go ahead for further oil drilling is granted by this current group, that would add weight to Davis’ claim that Minnis is merely pandering on the issue.
If this is indeed an issue voters care about — and we submit they should — they should demand a formally stated policy position from the Free National Movement and the Minnis administration on the matter.
This is of sufficient importance and warrants more than just sideline comments from the prime minister.
The post PLP govt would be open to extending BPC’s licenses ‘within existing legal regime’ appeared first on The Nassau Guardian.
source https://thenassauguardian.com/plp-govt-would-be-open-to-extending-bpcs-licenses-within-existing-legal-regime/
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