A political blog about Bahamian politics in The Bahamas, Bahamian Politicans - and the entire Bahamas political lot. Bahamian Blogger Dennis Dames keeps you updated on the political news and views throughout the islands of The Bahamas without fear or favor. Bahamian Politicians and the Bahamian Political Arena: Updates one Post at a time on Bahamas Politics and Bahamas Politicans; and their local, regional and international policies and perspectives.
Showing posts with label BPC. Show all posts
Showing posts with label BPC. Show all posts
Saturday, January 23, 2021
Sunday, September 29, 2013
...troubled by Bahamas Petroleum Company (BPC) CEO Simon Potter’s recent comments ...that the financial terms his company “tied down with The Bahamas Government are second to none.”
By Kendea Smith
Jones Bahamas
Free National Movement (FNM) Deputy Leader Loretta Butler-Turner says she’s “troubled” by Bahamas Petroleum Company (BPC) CEO Simon Potter’s recent comments that the financial terms his company “tied down with the Bahamas Government are second to none.” She is now questioning what those financial terms are and is calling on the government to respond to those claims.
Just last week, Mr. Potter told a room of potential investors in London that the financial terms with respect to any oil extraction are likely to be “music to people’s ears.”
Mrs. Butler-Turner says Bahamians are being “left in the dark” when it comes to oil exploration and BPC’s general activities.
The FNM deputy leader said it’s obvious that the Progressive Liberal Party (PLP) is putting “foreign interests first and the Bahamian people “dead last” in terms of providing information and consultation on potential oil resources owned by The Bahamas.”
“The FNM reminds the Bahamian people that both Prime Minister Perry Christie, who is also the minister of finance, and Deputy Prime Minister Philip Davis both served as consultants for BPC prior to the 2012 general election, during which a referendum on oil exploration was promised,” she said.
“When exactly will that referendum be held so that the PLP can keep that promise as well as the promise of putting Bahamians First? Additionally, when will Mr. Christie and Mr. Davis disclose the handsome financial terms they received as consultants for BPC?”
Mrs. Butler-Turner said she also has questions about discussions BPC had with the government over a referendum for oil drilling.
“What does the BPC CEO mean that ‘underneath the surface’ that any discussion of a referendum has been removed,” the deputy leader questioned.
“Oil exploration is a monumental decision for the country. It must be approached with deliberation, accountability and transparency, little of which now appears to be the case. The Bahamian people and the Official Opposition deserve and demand greater transparency and answers from the Christie government relative of the claims made by the CEO of BPC.”
September 26, 2013
The Bahama Journal
Jones Bahamas
Free National Movement (FNM) Deputy Leader Loretta Butler-Turner says she’s “troubled” by Bahamas Petroleum Company (BPC) CEO Simon Potter’s recent comments that the financial terms his company “tied down with the Bahamas Government are second to none.” She is now questioning what those financial terms are and is calling on the government to respond to those claims.
Just last week, Mr. Potter told a room of potential investors in London that the financial terms with respect to any oil extraction are likely to be “music to people’s ears.”
Mrs. Butler-Turner says Bahamians are being “left in the dark” when it comes to oil exploration and BPC’s general activities.
The FNM deputy leader said it’s obvious that the Progressive Liberal Party (PLP) is putting “foreign interests first and the Bahamian people “dead last” in terms of providing information and consultation on potential oil resources owned by The Bahamas.”
“The FNM reminds the Bahamian people that both Prime Minister Perry Christie, who is also the minister of finance, and Deputy Prime Minister Philip Davis both served as consultants for BPC prior to the 2012 general election, during which a referendum on oil exploration was promised,” she said.
“When exactly will that referendum be held so that the PLP can keep that promise as well as the promise of putting Bahamians First? Additionally, when will Mr. Christie and Mr. Davis disclose the handsome financial terms they received as consultants for BPC?”
Mrs. Butler-Turner said she also has questions about discussions BPC had with the government over a referendum for oil drilling.
“What does the BPC CEO mean that ‘underneath the surface’ that any discussion of a referendum has been removed,” the deputy leader questioned.
“Oil exploration is a monumental decision for the country. It must be approached with deliberation, accountability and transparency, little of which now appears to be the case. The Bahamian people and the Official Opposition deserve and demand greater transparency and answers from the Christie government relative of the claims made by the CEO of BPC.”
September 26, 2013
The Bahama Journal
Wednesday, September 25, 2013
...the financial terms that currently exist between Bahamas Petroleum Company (BPC) and the Bahamian government are “nonsense”
Govt urged to address oil terms
Senior oil sector source calls financial benefits ‘a give away’
By Alison Lowe
Guardian Business Editor
alison@nasguard.com
The government is being advised to move quickly to update the terms of its agreement with Bahamas Petroleum Company (BPC), which have been dubbed by BPC itself, in addition to by local and international oil industry watchers, as extremely favorable to the company.
Earl Deveaux, former minister of the environment under the Ingraham administration, told Guardian Business that he agrees with BPC Chief Executive Officer Simon Potter’s assessment expressed at a recent London energy conference that the terms on which the government and BPC and its partners would share any oil revenues would appear to be “second to none” in the world for their generosity to the oil company.
Deveaux told Guardian Business that these terms and many other issues should be subject to greater public discussion.
In an address to the London Global Energy Conference on September 16, Potter said that the financial terms surrounding any potential oil discovery in The Bahamas are likely to be “music to people’s ears” given that they revolve around a “simple royalty” payment to the government of 12.5 percent, increasing to 25 percent if oil extraction reaches over 350,000 barrels a day.
Potter noted that the government could seek to change the terms, but highlighted that the Privy Council in London “ultimately remains the final court of appeal” in The Bahamas, suggesting that a legal challenge could be launched were the government to seek to change the terms.
Yesterday, a senior oil industry source in Trinidad and Tobago, which has long benefitted from its own highly-developed oil sector, told Guardian Business that the financial terms that currently exist between BPC and the government are “nonsense”.
“It would amount to a giveaway of the oil sector,” said the source, speaking on condition of anonymity.
He noted that while Potter highlighted a zero income, corporate or capital gains tax environment in The Bahamas from which the oil company would also benefit, in Trinidad and Tobago royalty payments are accompanied by a production levy on gross income from crude oil, a supplemental petroleum tax based on oil prices that range from zero to 35 percent, a petroleum profits tax or corporation tax charged at 50 percent of gross revenues from all sources less deductible expenses and allowances, and an unemployment levy of five percent.
“Trinidad and Tobago has applied a high taxation regime and has been very successful in doing so,” said the source. “They should think about making changes sooner rather than later.”
Deveaux agreed it would benefit the government to address the financial terms in the short term, rather than waiting until BPC has secured its drilling partner, which it is seeking to partner with to undertake the exploratory well, or until after exploration occurs.
“I would agree that the terms of the petroleum leases are very generous and I have no idea what he’s offered to his prospective investors, but if it reflects what the government has provided for in the lease I expect it would be among the most generous in the world.
“I’ve always maintained publicly and privately that if we were to ever go down the road of exploiting oil reserves in The Bahamas, we would have to sit down and renegotiate those things.”
“I think it is infinitely easier now for the government to undertake any contemplated change that it may wish than if it waited until an exploratory well is drilled or a commercial discovery is made.”
Deveaux said that he sees a broad-ranging discussion about many aspects of what it means for The Bahamas to develop an oil industry as necessary and lacking at present.
“There hasn’t been any discussion, and it’s unfortunate,” said Deveaux.
“We have plenty reasons to review the overall regime and legislation. It was done at the time when certain things were not a part of our reality. We didn’t have Exxon Valdez, the BP oil spill, deep sea drillings off Mexico or Brazil and we didn’t have prospect of rising sea levels from temperature increases. We have to factor in today’s realities, and there are compelling reasons to review it.
“I think the financial reasons are important (reasons to review the terms), but I don’t list them as any more important than others. I would be engaging BPC in discussions about how we would manage this resource for all the reasons I listed and how we would create capacity in The Bahamas.
“There’s the whole review of how natural resource contribution of The Bahamas’ environment is now comprised; We have fishing, recreational tourism, aragonite and pristine waters that have been the host of world wide research in a number of areas. How do you factor that in with a companion oil industry?”
In his address to the Global Energy Conference, Potter described efforts to “bring the (Bahamian) government along” with respect to the development of an oil sector.
This included describing the differences that would exist between any oil extraction that would occur in The Bahamas versus the operation that was undertaken in the Gulf of Mexico prior to the 2011 oil spill, in light of differences in the depth of the drilling, the rock formations in The Bahamas, and the equipment that would be used, among other factors.
The company has completed an environmental impact assessment (EIA) and has an environmental management plan currently being developed. The government has committed to updating oil sector regulations in short order, although it has not indicated if this would include any changes to the financial terms specified by Potter in his address.
Efforts to reach Minister of the Environment Kenred Dorsett were unsuccessful up to press time.
September 24, 2013
Thursday, August 1, 2013
No exploratory oil well drilling for Bahamas Petroleum Company (BPC) in Bahamian waters ...until the regulations that will oversee the industry are in place
No drilling before regulations in place
Minister says BPC license renewal came with ‘new requirements’
Scieska Adderley
Guardian Business Reporter
scieska@nasguard.com
The Bahamas Petroleum Company (BPC) will not be permitted to drill any exploratory wells in Bahamian waters until the regulations that will oversee the industry are completed.
According to Minister of the Environment and Housing Kenred Dorsett, these regulations will not be completed before the end of the year.
“You won’t see exploratory oil drills this year, that’s for sure,” he confirmed.
Last week, Simon Potter, BPC’s chief executive officer, revealed that the government has renewed the company’s five exploration licenses for another three years.
However, as part of its conditions for renewal, Dorsett said his ministry imposed new requirements that would ensure that no drilling would take place until the new regulations are in place.
“BPC’s license has been renewed. Under the license that they had, they indicated that renewal would be automatic once they applied for it and met a certain condition,” he said.
“Those conditions have been met but in addition to that, the government has imposed new requirements, which ensure that there will be no drilling whatsoever being able to be advanced until the new regulations are put in place.”
“We have indicated to them that while the license is renewed, it will also be subjected to a new environmental regulation that we intend to advance.”
Dorsett noted that his ministry is working with the attorney general’s office on the new regulations that will include a new legislative framework relating to oil exploration and drilling.
“As we indicated before, we are not only looking at the new legislative regime or petroleum exploration, but we are also looking to enhance the environmental aspects associated with that endeavor,” said Dorsett.
“So they will be subjected to those environmental regulations, which we are currently working on with the attorney general’s office.
“BPC has given us a timeframe for the end of this calendar year and so we are working assiduously to attempt to have it completed before then.”
In a recent interview with Guardian Business, Potter revealed that these license renewals now give the company the “authority” to drill a well and establish commercial reserves by 2015.
“The government has renewed our licenses for three years. That says to us by April 2015, you are to have drilled a well here in The Bahamas,” he said.
“This gives us the authority to go ahead and drill our well and try to establish those commercial reserves by 2015.”
Potter estimates the company will begin its oil drilling program in the latter part of 2014.
BPC was granted five oil exploration licenses in April 2007.
To date, BPC has invested $50 million in the country, with most of that spent on 3D seismic testing, and has completed its environmental impact assessment (EIA). Now, the company is working on its environmental management plan (EMP) to meet its 2015 obligation to the government.
July 31, 2013
Tuesday, April 23, 2013
Bahamas Petroleum Company (BPC) says it expects to find crude oil in The Bahamas
BPC Expects To Strike Oil
By Jones Bahamas:
Efforts to find oil off Cuba may have failed, but the
Bahamas Petroleum Company (BPC) – the only explorer searching for oil
off the Atlantic archipelago – says it expects to find crude oil in The
Bahamas.
BPC CEO Simon Potter recently noted that a seismic study by his company showed that the Great Bahama Bank may have oil at shallower water depths, making it easier to drill, and a layer of salt keeping the crude in place.
BPC is currently looking for a partner to raise at least $100 million to drill the country’s first exploration well in about 27 years.
It holds five licences covering more than 4 billion barrels of potential oil resources and is seeking three more with Statoil ASA.
Last month, the Christie administration gave BPC the green light to explore for oil.
Environment Minister Kenred Dorsett said the government wants to first see if there is oil in The Bahamas before proceeding with a voter referendum.
“Let’s go and bake the cake, let’s establish commercial reserves,” Mr. Potter said. Should a discovery be made, “there’ll be a much more positive issue to be managing.”
Mr. Potter has already noted that oil extraction could help The Bahamas reduce its mounting debt.
Government borrowings rose to 53 percent of gross domestic product last year from 32 percent in 2007, according to a December report by Moody’s Investors Service.
However, environmentalists are leery about drilling for oil, noting that it could destroy The Bahamas’ precious natural resources.
22 April, 2013
The Bahama Journal
BPC CEO Simon Potter recently noted that a seismic study by his company showed that the Great Bahama Bank may have oil at shallower water depths, making it easier to drill, and a layer of salt keeping the crude in place.
BPC is currently looking for a partner to raise at least $100 million to drill the country’s first exploration well in about 27 years.
It holds five licences covering more than 4 billion barrels of potential oil resources and is seeking three more with Statoil ASA.
Last month, the Christie administration gave BPC the green light to explore for oil.
Environment Minister Kenred Dorsett said the government wants to first see if there is oil in The Bahamas before proceeding with a voter referendum.
“Let’s go and bake the cake, let’s establish commercial reserves,” Mr. Potter said. Should a discovery be made, “there’ll be a much more positive issue to be managing.”
Mr. Potter has already noted that oil extraction could help The Bahamas reduce its mounting debt.
Government borrowings rose to 53 percent of gross domestic product last year from 32 percent in 2007, according to a December report by Moody’s Investors Service.
However, environmentalists are leery about drilling for oil, noting that it could destroy The Bahamas’ precious natural resources.
22 April, 2013
The Bahama Journal
Saturday, April 28, 2012
Resignations sought for the Progressive Liberal Party (PLP) Leader; Perry Christie ...and Deputy; Philip "Brave" Davis ...over their connections to the Bahamas Petroleum Company (BPC)... ...The company wants to drill for oil in The Bahamas - in the face of widespread environmental concerns
DNA Demand Christie's Resignation
By DANA SMITH
dsmith@tribunemedia.net
THE DNA is calling for the resignation of PLP leader Perry Christie over his connection to the Bahamas Petroleum Company.
DNA deputy leader Chris Mortimer, Montagu candidate Ben Albury and a group of party supporters staged a demonstration yesterday morning outside the Office of the Opposition on Parliament Street.
They were protesting recent media reports that quote Mr Christie as stating the law firm representing BPC had consulted with him at some point in the past.
Davis & Co, the law firm of PLP deputy leader Philip "Brave" Davis, represents BPC along with Graham Thompson & Co.
The company wants to drill for oil in the Bahamas, but the DNA and others have raised environmental concerns.
Mr Albury said: "Mr Christie is the one who said he's involved, he admits to being a consultant . . .
"I would for like to ask Mr Christie to do the honourable thing and step down as leader of the opposition and resign as a candidate for Centreville."
Mr Albury added that Mr Davis should "definitely step down" as well.
Mr Christie could not be reached for comment, but Mr Davis denied there is any conflict of interest.
"How does it become a conflict? I'm not in government. When I'm there, then the question might arise, then I'll know what I have to do," he said.
April 27, 2012
Thursday, September 2, 2010
BPC Shares tumbled after the surprise announcement that the government was suspending consideration of exploration licences in The Bahamas
Govt's "no to oil" shock hits BPC shares
By SCOTT ARMSTRONG
Guardian Business Editor
scott@nasguard.com
twitter.com/guardianbiz:
Shares in the company dedicated to drilling for oil in The Bahamas have tumbled after the surprise announcement that the government was suspending consideration of exploration licences.
BPC was due tomorrow to change its name to Bahamas Petroleum Company, and had expressed its desire to be listed on the BISX so that shares in the company could be sold domestically. BPC believes there could be as much as$12 billion in oil revenue underneath Bahamian waters waiting to be brought up, specifically in the area called Cay Sal Bank.
The company estimates that an oil industry could create around 15,000 jobs for The Bahamas, and to that end teamed up with Norwegian oil giant Statoil, insisting their partner had created the highest safety standard in the world for drilling, one which every other exploration would soon be forced to follow in the wake of the Gulf of Mexico spill.
But despite the assurance that The Bahamas had the'safest'company on board, the Minister for the Environment Dr. Earl Deveaux yesterday put on hold the exploration licence process, saying the government wanted to make sure it had a stringent set of environmental rules in place before it considered applications, and added it would also review all existing licences.
In the wake of that announcement shares in BPC, which owns five exploration licences in Bahamian waters to the east of Florida and Cuba, fell by 27 percent from 4.08 pence to 2.98 pence on the London Stock Exchange's Alternative Investment Market(AIM).
That took the estimated value of the company from$45 million to$39.4 million.
The move by The Bahamas follows the U.S. issue of a six-month ban on deepwater drilling in the Gulf of Mexico in July, after the explosion of a BP well caused the world's worst offshore oil accident.
BPC is reported to have said it would continue to analyse seismic data on its existing licences as it has not yet established a definitive drilling program.
A report on Reuters quoted the company as saying that drilling on BPC's Bahamian acreage did not face the same geological risks as those found in the Gulf of Mexico.
A spokesperson for Statoil told Reuters said the company was viewing the suspension as a"postponement".
BPC believes there could be multiple 500 million barrel fields in the 2.5 million acres it wants to explore.
Deveaux said yesterday: "The Ministry of the Environment has suspended consideration of all applications for oil exploration and drilling in the waters of The Bahamas. The ministry seeks, by this decision, to maintain and safeguard an unpolluted marine environment for The Bahamas notwithstanding the potential financial benefits of oil exploration.
"We are not seeking to interfere with any existing licenses and the people who have licenses know of the policy. The recent events showed us that(a)oil if it is to be found, will likely be in the marine environment and(b)we want to maintain an unpolluted environment.
"And so before we explore for oil we want to have the most stringent environmental protocols in place."
9/1/2010
thenassauguardian
By SCOTT ARMSTRONG
Guardian Business Editor
scott@nasguard.com
twitter.com/guardianbiz:
Shares in the company dedicated to drilling for oil in The Bahamas have tumbled after the surprise announcement that the government was suspending consideration of exploration licences.
BPC was due tomorrow to change its name to Bahamas Petroleum Company, and had expressed its desire to be listed on the BISX so that shares in the company could be sold domestically. BPC believes there could be as much as$12 billion in oil revenue underneath Bahamian waters waiting to be brought up, specifically in the area called Cay Sal Bank.
The company estimates that an oil industry could create around 15,000 jobs for The Bahamas, and to that end teamed up with Norwegian oil giant Statoil, insisting their partner had created the highest safety standard in the world for drilling, one which every other exploration would soon be forced to follow in the wake of the Gulf of Mexico spill.
But despite the assurance that The Bahamas had the'safest'company on board, the Minister for the Environment Dr. Earl Deveaux yesterday put on hold the exploration licence process, saying the government wanted to make sure it had a stringent set of environmental rules in place before it considered applications, and added it would also review all existing licences.
In the wake of that announcement shares in BPC, which owns five exploration licences in Bahamian waters to the east of Florida and Cuba, fell by 27 percent from 4.08 pence to 2.98 pence on the London Stock Exchange's Alternative Investment Market(AIM).
That took the estimated value of the company from$45 million to$39.4 million.
The move by The Bahamas follows the U.S. issue of a six-month ban on deepwater drilling in the Gulf of Mexico in July, after the explosion of a BP well caused the world's worst offshore oil accident.
BPC is reported to have said it would continue to analyse seismic data on its existing licences as it has not yet established a definitive drilling program.
A report on Reuters quoted the company as saying that drilling on BPC's Bahamian acreage did not face the same geological risks as those found in the Gulf of Mexico.
A spokesperson for Statoil told Reuters said the company was viewing the suspension as a"postponement".
BPC believes there could be multiple 500 million barrel fields in the 2.5 million acres it wants to explore.
Deveaux said yesterday: "The Ministry of the Environment has suspended consideration of all applications for oil exploration and drilling in the waters of The Bahamas. The ministry seeks, by this decision, to maintain and safeguard an unpolluted marine environment for The Bahamas notwithstanding the potential financial benefits of oil exploration.
"We are not seeking to interfere with any existing licenses and the people who have licenses know of the policy. The recent events showed us that(a)oil if it is to be found, will likely be in the marine environment and(b)we want to maintain an unpolluted environment.
"And so before we explore for oil we want to have the most stringent environmental protocols in place."
9/1/2010
thenassauguardian
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