WITH The Bahamas Petroleum Company fulfilling all its required licence and regulatory obligations for another three year licence, FNM Leader Dr Hubert Minnis called on Prime Minister Perry Christie yesterday to find the “testicular fortitude” and make a decision with regards to the licensing of offshore oil drilling without having to “pass the buck” to the Bahamian people via a national referendum.

Highlighting that nearly 75 per cent of the Bahamian workforce is related to Tourism, Dr Minnis said that his party remains concerned about the prospects of BPC and the possible impact a spill in Bahamian waters would have on the nation’s number one industry.

“We have serious concerns about the environment and where are the regulations that would protect us if an accident were to occur.  Where are the regulations with respect to how any proceeds from this venture would be handled?  And what are we going to do with the money?  That money, and that oil belongs to the people.  It should be protected for future generations.  And the people should have a say in what is done with it,” Dr Minnis said.

The Free National Movement’s leader also questioned whether or not Mr Christie ever returned the consultancy fees that he admitted receiving from BPC.

“We demand that the Government immediately disclose whether or not the law firm of Davis & Co. or any other law firm owned by a PLP cabinet minister or parliamentarian (still) acts on behalf of BPC.

“We remind Mr Christie that the most precious resources we have, apart from our people, are marine, touristic and fisheries resources.  They should not be recklessly endangered, and the FNM will not permit potentially compromised decision-making, and lax regulatory oversight of oil drilling to compromise and endanger the well-being of Bahamian fishermen, hoteliers and communities,” Dr Minnis said.

With regards to the upcoming referendum on oil drilling, Dr Minnis challenged the Prime Minister to make up his own mind on the issue and act – and not pass the buck to the Bahamian public, as he, and his PLP party were elected to govern.

“Christie is revoking his responsibility to govern and is passing the buck.  You were voted in to make a decision. So make a decision.  You are vicitimizing people left, right and centre.  You didn’t ask me about that. You can’t be a government of referendum. Being in government means you have to make decisions. He is copping out.  I wonder if he has the testicular fortitude to make tough decisions,” he asked.

In fact, the FNM said that if Mr Christie and his government were so “frightened to lead” that they should hold a referendum on their governance thus far and allow the Bahamian people to vote on that.

“Have a referendum on whether or not we made a mistake in putting you there. If we vote ‘Yes’, then go,” he exclaimed.

September 11, 2012

Tribune 242

Monday, September 10, 2012

...major uncertainties remain concerning oil drilling in The Bahamas

IMF: Bahamas faces ‘not just an oil find’

By Jeffrey Todd
Guardian Business Editor
jeffrey@nasguard.com

The International Monetary Fund (IMF) says the size of any oil deposit lurking beneath Bahamian waters is essential to any decision on whether to commence commercial drilling.

Gene Leon, mission chief to The Bahamas, felt there were myriad factors and concerns for this potentially billion-dollar question.  How much is there, and how long the benefit will last, must be taken into account and weighed against the possibility of any detrimental impact on the country's coveted natural environment.

"There are clearly environmental concerns, and the flip side to an oil find is the tourism industry," he explained.  "You don't want to be marred should a problem arise.  There is always the question of how much, how long the benefit lasts, how to use those resources, and how to mitigate any environmental issues.  These are big issues, and one must look at it in a holistic way. This is not just an oil find."

The comments by the IMF mission chief came at last week's conference in Trinidad and Tobago concerning rising Caribbean debt and limited prospects for growth.  In The Bahamas, oil exploration has been a major revenue option burning a hole in the country's back pocket.

According to a report this summer by the United States Geological Survey (USGS), there is approximately a 50 percent chance it has 1.59 billion barrels of recoverable oil. It further determined there is a five percent chance it has 4.3 billion barrels, and a 95 percent chance of at least 554 million barrels.

Even if the find is on the lower end, the IMF mission chief noted that The Bahamas could consider using the resources just for “self sufficiency". Leon told Guardian Business that Barbados implemented a similar approach.

"It would certainly help. It (oil) is a fairly sizable chunk of your import bill," he added.

Of course, Bahamas Petroleum Company (BPC), along with its shareholders on the London Stock Exchange (LSE), hope any find spills into the billions, rather than millions.

BPC has invested seven figures over the past few years on seismic testing, staffing and expertise ahead of an exploratory drill south of Andros, near the Cuban border.

On the other side, a Russian drilling company is set to drill just 100km from this proposed site later this year.

While that might be perceived as good news, major uncertainties remain concerning oil drilling in The Bahamas. The previous government suspended BPC's licenses back in May during the throws of the national election.

Guardian Business understands a statement is expected to be released by BPC today, however, indicating that the government will find them in full compliance. If so, that could mean renewed confidence for investors.

This uncertainty has been reflected in the share price of BPC in recent weeks. Trading on Friday saw share price dip below 6 pence per share for the first time since December 2011

Shares managed to rally at the end of trading, however, finishing off the day at 6.50 pence. That compares with more than 24 pence per share early last year.

Sep 10, 2012

thenassauguardian