Simon Potter, Bahamas Petroleum Company (BPC) chief executive ...hopes that there would be enough Bahamian investor interest ...to indicate “a momentum of support” for Bahamas Petroleum Company ...and its oil exploration activities in The Bahamas

Oil Explorer Share Issue In Year-Long Gov't Approval Wait

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas Petroleum Company’s (BPC) planned share offering to local investors has been delayed for over a year by the wait for the Government to give its consent for exchange control approval, Tribune Business can reveal.

 

Simon Potter, BPC’s chief executive, declined to comment on the issue when questioned by this newspaper, but sources familiar with the situation said the company’s application to the Central Bank of the Bahamas had been submitted around 12 months ago.

 

While the Central Bank has nominal authority on this issue, the real power lies with the Government, which has to give the ‘nod’ on applications by major investors for exchange control approval.

 

Such approvals are sometimes long in coming, as Cable Bahamas recently found out in seeking approval for its $100 million worth of US deals, and Tribune Business understands that, in similar fashion, BPC’s application has been sitting on the Government’s desk, not moving.

 

Exchange control approval is a vital prerequisite for BPC to launch its long-promised Bahamian Depository Receipt (BDR) share offering.

 

This is because the proceeds raised from the offering to Bahamian investors will have to be converted into UK sterling to purchase BPC shares listed on London’s Alternative Investment Market (AIM). These will then be backed by the BDR derivatives, listed and traded on the Bahamas International Securities Exchange (BISX).

 

Mr Potter, though, did reiterate BPC’s intention to proceed with its share offering as a way to give Bahamians an opportunity to buy into, at the start-up stage, an investment that could ultimately be enormously profitable.

 

Confirming that the oil exploration firm was in discussions with BISX and the regulators over the proposed offering, Mr Potter acknowledged that BPC as an investment was “not for everyone”.

 

Pointing out that an investment in the company carried “technical” as well as the usual ‘financial’ risks, Mr Potter said that because there were no commercial quantities of oil yet confirmed in Bahamian waters, BPC was a high reward/high risk offering.

 

But, while “success isn’t measured by take-up”, Mr Potter expressed hope there would be enough Bahamian investor interest to indicate “a momentum of support” for BPC and its oil exploration activities.

 

“Can I sit here and tell you when it will occur? No, but in terms of our prospectus, it’s in at the Securities Commission,” Mr Potter told Tribune Business, in response to queries over when the BDR issue might come to market.

 

“They’ve [the Commission] got their job to do, and we’re answering their questions. There are some considerations, and we’re listening to suggestions from BISX, the Central Bank and the Securities Commission.

 

“The company has its objectives, and these commissions have their statutes and rules. We’re listening to their suggestions.”

 

Added spice to BPC’s relationship with the regulators has come through Hillary Deveaux’s appointment as the Securities Commission’s acting executive director.

 

Mr Deveaux suggested as recently as late July, just prior to his appointment, that he would be “shocked” if the Securities Commission approved BPC’s share offering, on the grounds that the company’s primary listing was not on a top-tier stock exchange.

 

He explained that the oil explorer’s planned share issue to Bahamian investors did not meet the rules criteria he had left in place for such BDR issues.

 

This required companies, which decided to offer BDR shares to Bahamian institutional and retail investors, to have a primary listing on the world’s top stock markets - such as the New York Stock Exchange (NYSE) or London Stock Exchange (LSE).

 

This was designed to ensure BDR issuers complied with the necessary reporting and governance requirements for public companies, but Mr Deveaux argued that BPC’s primary listing - on AIM - did not meet the previously set criteria.

 

He described AIM, the UK’s junior stock market for incubator and developing companies, as one more focused on growth rather than regulation of its listed companies.

 

As a result, Mr Deveaux said BPC would be better advised to seek a listing on BISX’s ‘main board’.

 

And, failing to do that, he suggested Bahamians should go through the investment currency market and Central Bank exchange control regime, and buy shares on the London market if they wished to invest in AIM.

 

Mr Potter did not comment on BPC’s relationship with the Securities Commission or whether Mr Deveaux’s appointment may impact the BDR issue’s approval.

 

Sources close to BPC had previously described Mr Deveaux’s comments as “rather strange”, pointing out that it had to comply with numerous AIM listing, governance and financial reporting/disclosure requirements.

 

And Michael Anderson, president of RoyalFidelity Merchant Bank & Trust, which is acting as BPC’s financial adviser and placement agent on the BDR issue, said earlier that the rules referred to by Mr Deveaux had “changed quite substantially” since he left the Securities Commission.

 

Given that BPC has yet to prove beyond doubt that commercial quantities of oil exist in Bahamian waters, investors will effectively be speculating on the prospects of a ‘black gold’ discovery coming true.

 

In essence, the BPC BDRs are a venture capital investment, or ‘high risk, high reward’ play. There is a high risk that the company might find nothing, but by participating in equity ownership at the ground level, Bahamian investors would position themselves for potentially tremendous upside and wealth creation.

 

Mr Potter acknowledged this, telling Tribune Business: “An investment in a company like BPC is not for everyone, and the reason I say that is not only because there are the usual financial risks that occur with any investment, but for expansion companies there are technical risks that need to be understood and appreciated.

 

“Therefore, there are investment risks at either end of the spectrum. It can be a spectacular success, but if we don’t turn up any oil, we will have to get our thinking caps on.”

 

The BPC chief executive indicated there were ways to address any regulatory concerns about how the BDR issue would be pitched, agreeing that the offering had to be marketed “sensitively”.

 

“I’d like for there to be a large take-up where clearly there’s a momentum in support of the company and its objectives in exploring for oil in the Bahamas,” Mr Potter added.

 

October 02, 2013

 

Tribune 242

 

Caribbean Blog International

 

...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

Caribbean Blog International

...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

thenassauguardian

Caribbean Blog International

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

thenassauguardian

Caribbean Blog International

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

Caribbean Blog International

Perry Christie’s lack of transparency on certain issues is as murky and as dense as an oil slick... ...When did he become a consultant to Bahamas Petroleum Company (BPC)? ...How much was he paid? ...How often did they consult with him?

Perry Christie’s oil slick

Front Porch

BY SIMON

Referring to their twin island-nation’s oil wealth, some Trinidadians and Tobagonians liked to brag, “oil don’t spoil”.  It may not spoil in the ground.  But the potential to spoil rotten, some politicians, public officials and others is legend.

Speaking ahead of the gambling referendum in January, Bahamas Faith Ministries International President Dr. Myles Munroe sounded this dire warning: “Any government pressured by a small lobby group such as the gaming bosses will inevitably produce corruption.  And if this referendum goes through we will never have a pure government again.”

Bahamaislandsinfo.com further reported: “He [Dr. Munroe] also stated that the motivation of the referendum of the governing authority seems to be the surrender to the powers with money.  In other words he said that the government cannot rightly govern because they will owe allegiance to the few and not to the citizenry or the people of The Bahamas.”

The pastor’s warning is noteworthy.  The nature and role of leadership have been central themes of Dr. Munroe’s ministry.  The quality of leadership at various levels of society will be pivotal in the debate on oil exploration.

For its part, the Bahamas Christian Council has gotten off to a poor start.  The council’s economic committee chairman Rev. Patrick Paul specified the type of arrangement he thought best to distribute the proceeds of oil wealth, calling a supposed arrangement “categorically unjust, injurious and unfair to the democracy of our nation”.

God bless Paul.  But, he seems like a potential groom planning for a joint bank account and mortgage with a woman whom he hasn’t even asked to marry him.  The reverend has gotten things in the wrong order.

A prior question is whether there should be drilling in the first place, which is what then Opposition Leader Perry Christie solemnly promised the Bahamian people his government would ask in a referendum.  He has spectacularly reneged on his promise.

Calculated flip-flop

Christie’s latest calculated flip-flop clarifies the quality of political leadership the country needs in considering oil exploration.  Good governance and good leadership on this issue will require leaders of great prudence and profound judgement.

Christie has exhibited a stunning lack of prudence and extremely poor judgement on the matter of oil exploration.  With the disclosure of his work for Bahamas Petroleum Company (BPC), Christie, seemingly caught off guard, listed some of his duties as a consultant for the company.

“If there is an issue they need advice on, whether or not they need someone to speak to the issue of environmental impact [studies], the issue of whether or not in my judgment a matter is worthy for the government to approve, whether or not an application is ready, whether or not they should employ and who go on the board of directors, whatever views they ask of the firm regards it as necessary, they would consult me on it.  Those are the services I provide,” he said.

This is more than the work of an attorney.  His duties appear political and operational.  He would be considered a lobbyist in some jurisdictions.  Further, what did he mean by, “whether or not in my judgment a matter is worthy for the government to approve”?

If there are clear guidelines, it is not up to anyone’s judgment, including Christie’s, as to whether a matter “is worthy for the government to approve”.  Such murkiness is worrisome in what should be a highly regulated field.  Is Christie also following this approach as prime minister?

During last year’s general election campaign, former Prime Minister Hubert Ingraham noted: “When Mr. Christie agreed to become a consultant for the company [BPC] it would have been with the full knowledge and intention of using his position, past and present, and his access to government agencies, whether as government or as former government, to influence a decision by the Bahamian government with respect to any application by that company.”

Stringent guidelines

In quite a number of democracies there are stringent guidelines to limit the revolving door and conflicts of interest of politicians and public officials moving in and out of government, potentially using their public positions to benefit private clients.  One key measure includes a waiting period before one can work as a consultant or lobbyist for various clients.

Christie’s revolving door seems like a turbocharged merry-go-round: Between 2002 and 2007, his government issued certain licences to BPC.  Out of office he became a consultant to BPC.  Now back in office, his government has issued an exploration license to BPC, while delaying his promise to hold a referendum on oil drilling.

Christie’s lack of transparency on certain issues is as murky and as dense as an oil slick.  When did he become a consultant to BPC?  How much was he paid?  How often did they consult with him?

In addition to the prime minister, neither Deputy Prime Minister Philip Davis, whose law firm represented BPC, nor Senator Jerome Gomez have been transparent or forthcoming with their compensation terms and arrangements with BPC.

By his own admission, Christie was a general consultant to a corporation wanting to drill for oil in The Bahamas while he was in Parliament, while he held the position of leader of the opposition, and while he fully expected to again become prime minister.

Further, did Christie express that he expected to be paid handsomely for his advice?  And, how handsomely was he paid.  The Bahamian people have a need to know?

Essentially, Christie advised his clients on how to go about achieving their ultimate objective – which is to drill for oil in The Bahamas.  And it was not just legal advice, it was advice on environmental issues, preparation for government approval, who to employ, who to put on the board of directors, and a catchall “whatever views they ask of the firm”.

In light of all of this, we are expected to believe that the prime minister has an open mind on whether or not there should be oil drilling in The Bahamas?

Christie’s clients were not some ordinary citizens requiring legal counsel who may have had sometime in the future a matter before the government of The Bahamas.  These were a corporation whose sole purpose for being in the country is to drill for oil.  Even if he did not become prime minister, as leader of the opposition, Christie knew that at some point he would have to address this issue in Parliament.

Christie himself must have recognized the position he was in when he and his government decided not to proceed with the promised referendum but to give the company the right to drill anyway.

Why on such a momentous national issue and stunning flip-flop did he not make the statement himself but left it to his minister for the environment?  Christie continues to abuse our trust.  And, he is more interested in putting the needs of foreigners first, instead of the Bahamian people.

By his own actions and admission, the prime minister has demonstrated that he and his government cannot be trusted on the momentous question of oil drilling.  His revolving door and flip-flopping constitute an oil slick that grows bigger and continues to spread.

• frontporchguardian@gmail.com, www.bahamapundit.com

April 04, 2013

thenassauguardian

Oil drilling in The Bahamas... Bahamas Petroleum Company (BPC)... Perry Christie, Philip "Brave" Davis, The Progressive Liberal Party (PLP), and their dirty conflicting ways...

By Dennis Dames:

The response of the Progressive Liberal Party (PLP) deputy leader; Mr. Philip “Brave” Davis - to the question of conflict of interest in relations to his law firm’s connection to the Bahamas Petroleum Company (BPC), instigates more questions than answers.

Mr. Davis was quoted as saying the following in an article by one Dana Smith in The Tribune of April 27, 2012 entitled – DNA Demand Christie’s Resignation: "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."

But, this is general election season in The Bahamas; and Mr. “Brave” Davis and his consultant to Bahamas Petroleum Company (BPC) party leader – Mr. Perry Christie are offering themselves as alternatives to the existing administration via the Progressive Liberal Party (PLP).  Is Mr. Philip “Brave” Davis suggesting that things only become a potential conflict with a company that’s seeking to drill for oil in The Bahamas - which his law firm represents, only if - the Progressive Liberal Party is successful in defeating the governing Free National Movement (FNM) – on May 07, 2012?

This is scandalous!  Mr. “Brave” Davis, deputy leader of the Progressive Liberal Party (PLP) – has unknowingly accepted in his mind to probably start a government with a major scandal of international proportion; only if we - the Bahamian people innocently decide to vote for an oil scandal ridden gang.  The conflict of interest is in full swing Mr. ‘Brave” Davis; and it’s a pity that you cannot see the forest for the trees in this regard.

Bahamas Petroleum Company (BPC) wants to drill for oil in our waters and the Bahamian people doesn’t know the details of the deal, nor the environmental risks to our marine ecosystem; it is a major decision which requires reflective national consensus Messrs. Christie and Davis.

If it’s not a conflict of interest Mr. Davis, then tell the Bahamian People about Mr. Christie, the Progressive Liberal Party’s and your plans for Bahamas Petroleum Company (BPC) and Drilling for oil in The Bahamas before we vote on May 07, 2012 or face deserved rejection at the polls for your dirty conflicting ways.


Caribbean Blog International

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

tribune242

Caribbean Blog International

Prime Minister Hubert Ingraham accuses Progressive Liberal Party (PLP) Leader Perry Christie of being a lobbyist for the Bahamas Petroleum Company (BPC)... which wants to drill for oil in Bahamian waters

Ingraham: Christie is an oil lobbyist

Ingraham attacks PLP’s ‘Bahamians first’ pledge

By Candia Dames
Guardian News Editor
candia@nasguard.com

Prime Minister Hubert Ingraham last night turned up the heat on Progressive Liberal Party (PLP) Leader Perry Christie, accusing him of being a lobbyist for the Bahamas Petroleum Company (BPC), which wants to drill for oil in Bahamian waters.

Christie has acknowledged that the oil company has benefited from legal advice he has given as a consultant for Davis & Co., the law firm of PLP Deputy Leader Philip Brave Davis, which represents BPC.

At a rally in Rock Sound, Eleuthera, Ingraham spun the PLP’s ‘Bahamians first’ campaign theme, telling the crowd, “For me, putting Bahamians first is a solemn duty.

“It is not a slogan I throw around in order to win votes.  Putting Bahamians first is a duty I have sworn to uphold each time I placed my hand on the Bible and promised to abide by the constitution and protect the interests of the Commonwealth of The Bahamas.”

The prime minister added, “If Perry Christie really wanted to put you and every other Bahamian first, he would not have agreed to become a paid consultant for a foreign oil company.  This has cast doubt on where his true allegiance will be when it’s decision time.”

Ingraham said his (Ingraham’s) only interest is the interest of Bahamians.

Christie has said he provides advice to the law firm and is not a consultant for BPC directly.  When asked about the issue last week, Christie told The Nassau Guardian, “If there is an issue they need advice on, whether or not they need someone to speak to the issue of environmental impact [studies], the issue of whether or not in my judgment a matter is worthy for the government to approve, whether or not an application is ready, whether or not they should employ and who should go on the board of directors, whatever views they ask of the firm, in the event that firm regards it as necessary, they would consult me on it. Those are the services I provide.”

But Ingraham said last night the service Christie is providing is called lobbying.

“Is it a mere coincidence that a foreign oil company decided to hire as consultants and pay handsomely, the two most senior leaders of the Official Opposition, and potentially two senior leaders of the executive branch in the country in which they are seeking to drill for oil?” he asked.

He told voters they must decide whether they find Christie’s actions acceptable.

“There must be no question or appearance of the possibility of a grave conflict of interest, or the potential for secret deals which can compromise the individual who serves as your prime minister,” Ingraham said.

The prime minister told voters that they should have no doubt where he stands on this issue.

“A government led by me will not agree to any drilling for oil in The Bahamas until all necessary and appropriate regulations are in place, and until we are fully and competently in a position to regulate such activity, so as to protect our environment and that of the world’s ocean beyond from harmful and risky activity in our country and in our waters,” Ingraham said.

“...We are not now in a position to regulate and oversee drilling operations in our waters.  My greatest obligation is to do what I think is the right thing to do at any given time to protect the best interests of you, the Bahamian people, and that of future generations.

“I will not take any deliberate action to cause harm to our country, regardless of the promised financial reward for a select few consultants and legal representatives.  We in the FNM do not go that way.  We accept that we are different, distinctly different from them.”

Ingraham also said Jerome Gomez, the PLP candidate for Killarney, was BPC’s resident country manager before it set up its own office in The Bahamas.

The prime minister told the crowd that elections in difficult economic times demand that leadership be a principal issue.

“These are times for strong and decisive leadership; leadership that will make the tough choices.  This is no time for wavering and waffling,” he said. “This is no time for talk and more talk.  This is a time for action.

“I offer you on behalf of the Free National Movement proven leadership.  I offer you accountable and transparent government.  I offer you clean hands.  I pledge again to you a government that will deliver.”

Apr 26, 2012

thenassauguardian

Caribbean Blog International

...if the Progressive Liberal Party (PLP) is re-elected ...its leaders’ ‘relationship’ with the Bahamas Petroleum Company (BPC) would impact whatever decision they make in relation to the company’s bid to drill for oil in Bahamian waters ...says The Free National Movement (FNM)

FNM fears conflict in any PLP oil drilling decision

By Candia Dames
Guardian News Editor
candia@nasguard.com

The Free National Movement (FNM) said yesterday that if the Progressive Liberal Party (PLP) is re-elected, its leaders’ ‘relationship’ with the Bahamas Petroleum Company (BPC) would impact whatever decision they make in relation to the company’s bid to drill for oil in Bahamian waters.

PLP Leader Perry Christie last week confirmed that BPC benefited from advice he gave as a consultant to Davis & Co., the law firm which represents Bahamas Petroleum Company.

Christie’s confirmation came after Prime Minister Hubert Ingraham said his administration would not allow oil drilling, and suggested that the PLP leader was providing consultancy work for BPC.

Christie said the working relationship with Davis & Co., the law firm owned by PLP Deputy Leader Philip ‘Brave’ Davis, began after his party lost the 2007 general election.

The FNM said, “Perry Christie promises that, if elected, his role as a consultant to the Bahamas

Petroleum Company will not influence his government’s decision on allowing BPC to drill in Andros in 2013.

“Perry (Christie) cannot think that Bahamians don’t see through this empty statement. Bahamians know that the PLP record is not one of ethical clarity and transparency...”, said the statement sent by press@fnm2012.org.

But Christie said in an interview with The Nassau Guardian last week, “It’s not a conflict because the advice I’m giving now has nothing to do with any decisions I [will] make as prime minister.

“What a Cabinet minister must do is declare [his] interests and ensure that it is clearly understood that in the past or present he’s had a relationship [with a company].”

The FNM said senior members of the PLP, who would have a say in granting the exploration license to the Bahamas Petroleum Company, are deeply intertwined with the company.

On its website, under company advisors, BPC lists the law firm Davis & Co., run by Davis, as part of its Bahamian legal team.

The law firm of former PLP attorney general Sean McWeeney (Graham Thompson & Co.) is listed as the second firm representing BPC in The Bahamas. McWeeney is a partner in the firm.

BPC’s website also lists PLP candidate for Killarney Jerome Gomez as its resident manager.

“Believing that these relationships will not influence the contractual process to the benefit of BPC requires a level of blind trust in Christie and the PLP — a trust that the record clearly shows neither deserve,” the FNM said.

“If the PLP is elected, the Bahamas Petroleum Company will be another one of many on the long list of PLP scandals.”

BPC said yesterday it believes it has significantly exceeded all license commitments and obligations with cumulative expenditure in excess of $50 million.

“The company is already working to fulfill the increased requirements of this next three-year phase,” BPC said.

Apr 24, 2012

thenassauguardian

Caribbean Blog International

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

Bahamas Blog International