Oil, Oil Drilling, Oil Royalty, Oil Royalties and Oil Madness with the Grimpen Reprobates and Greed-lusting Lunatics in The Bahamas

 PROFESSOR GILBERT MORRIS ON BAHAMAS’ POOR CONCEPT OF NEGOTIATION:

IN TODAY’S PAPER, the Attorney General of the Bahamas intones that “if they find oil” we’ll negotiate a royalty!

Every hedge fund manager, investment banker, every bond investor, and investment grade insurance broker spilled his coffee at those petulant words. Every first year student in finance or graduate student in a negotiation or mediation seminar knows this statement goes against every basic rule of negotiation or even business strategy.

Here is the context any strategist sees immediately:

1. You (THE BAHAMAS) allows a no name company that’s no where near the best-of-brand to travel around the world flogging the name of the Bahamas in some ‘hustle and flow’, selling their eyelashes and toenails to raise money for what purpose? TO DRILL in the Bahamas...HEAR ME NOW: THE BAHAMAS!

2. This name (BAHAMAS) that evokes natural wonder GLOBALLY; a luxury brand that the world saves-it’s-money in hopes to enter and engage...you allow this BRAND to be flogged in every slopbucket across the globe...altering IMMEDIATELY 120 years of branding.

3. Just to emphasise: It’s not as if this company moved around saying “Hey man, this process is like we are exhibiting at the Louvre or in the Vatican. THEY ARE NOT HAVING TO SAY: this is the Bahamas. We have strict rules on who can participate in this deal, even stricter rules on how we mention the Bahamas’ name and still stricter rules on the methods: in fact, we have to work with the best engineers in the world and the leading environmental scientists...basically inventing a new concept and method for even preliminary exploration and it has to go before a global panel of experts and the science has to show a “Saudi Reserve level motherload” of potential oil”, with forward contracts for sales of $100 billion in 10 years”.

This is the language and pressure ANYONE WHO GAINS THE CONCESSION TO DRILL IN THE EARTH’s MOST PRISTINE ENVIRONMENT SHOULD SPEAK AND FEEL. This raises a question: WHERE IS THE SCIENCE? The science and engineering methodology that allows a company to DRILL IN THE BAHAMAS should be of a quality to win the Nobel Prize! It should have tongues wagging about a NEW BAHAMIAN SCIENTIFIC STANDARD! Where is the science?

4. The fact that the company does NOT have to speak in this manner and the fact that they NOW KNOW, gaining a concession to drill in the Bahamas is little different from selling fake hair, IT IS THEY who gained confidence in this affair?

THEY GREW FROM NOTHING TO SOMETHING!

THE BAHAMAS GAINED NOTHING: we didn’t set a new deal standard, we didn’t layout new green criteria...NOTHING! Instead this process shows any hustler can gain access to the world’s most pristine environment because we, to whom God granted stewardship, are low-information fools, who would sell our children’s tongues for disposable shiny objects!

5. Negotiations depend on leverage: so if this company knows we are so clueless, backward and morally vulgar toward our birthright, that we put them under ZERO PRESSURE to violate a 120 year old hospitality brand, under zero pressure to INVENT some new process for this privilege to drill in our environment, then we’ve lost already! UTTERLY!

6. What the AG’s apocalyptically dissonant statement says is this: WE permitted a nothing company a concession to VIOLATE the tranquility of our NATURAL LANDSCAPE THAT WE DIDNT CREATE AND CANT REPLACE, which the entire world envies, and now that they have this concession and USED THE NAME AND PRESTIGE OF THE BAHAMAS to gain notice in the world - FOR NOTHING - we will wait until they discover the two cups of dirty dishwater under OUR PRISTINE OCEAN FLOOR...then when that company goes from nothing to making an oil find in THE BAHAMAS...and once they HAVE ALL THE POWER AND LEVERAGE in the deal structure...we, THE BAHAMAS will negotiate a royalty!!!!!!

Are we smoking the hair of our armpits?

7. This telegraphs to the entire world that we are not just clueless to have allowed this TREASONOUS ASSAULT ON OUR ENVIRONMENT, but we have not even a basic clue how deal-structure functions. This leads to another question: WHERE IS THE DEAL STRUCTURE, BENCHMARKS, HURDLE PROPOSITIONS AND SPILL INSURANCE EQUAL TO THE RARE ENVIRONMENT THAT’s BEING PUT AT RISK? WHERE IS IT?

9. But here is the ‘coup d’ grace’, any deal specialist knows already the investment begging company can’t monetise any oil find. As such, they likely would have to flip it to a major oil company if they find anything. Given that the world is awash in cheap oil, and with major new oils finds in Russia, Brazil and with Iran set to come online forcing global prices lower, they would cap those wells in the Bahamas and we get NOTHING! NOTHING! NOTHING....as usual!

10. BUT the world knows now that we are grimpen reprobates and greed-lusting lunatics, who would sell a priceless irreplaceable environment - with a 120 year global profile - for NOTHING, ignoring our competitive advantages in new hospitality models, for a dying industry in which we have zero and would have zero influence!

Source/Comments

Official Opposition Leader - Dr. Hubert Minnis called on Prime Minister Perry Christie 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

Minnis Puts Ball In Plp Court Over Oil


By Tribune242


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

Caribbean Blog International

The promised referendum on oil drilling in The Bahamas is likely to be held some time in 2013 - according to Prime Minister Perry Christie

Oil Vote To Be Held Next Year


 
By CELESTE NIXON

Tribune Staff Reporter
cnixon@tribunemedia.net


THE promised referendum on oil drilling is likely to be held some time next year, Prime Minister Perry Christie said yesterday.

Speaking outside Cabinet yesterday, Mr Christie said the government hopes to tackle the issue in 2013, but only if certain other factors fall into place.

“We are continuing to talk to those people who are applicants,” he said, “but as I have indicated before, oil drilling will only take place if the Bahamian people approve it through a referendum.

“It will happen next year some time, and if in fact we are ready, as I anticipate to be with the constitutional review at the end of March. By then (the oil drilling issue) will have the developments that will enable us to look at the question of a referendum.”

Shortly after the election, Environment Minister Ken Dorsett said certain “assessments” had to take place before oil exploration could begin.

According to the 2011 annual report by the Bahamas Petroleum Company (BPC), the government is working towards establishing a regulatory framework for gas and oil extraction.

“Completion of the Bahamian elections ahead of their May 2012 deadline and timely progress towards implementation of revised laws, statutes and enabling regulations covering hydrocarbon exploration will promote accelerated activity,” he said. “The government is working to put the regulation in place to oversee oil and gas activity. We expect these regulations to be in place prior to our drilling.”

When the report was released in late May, Mr Dorsett said he could not comment on it.

“I haven’t read the report so I cannot comment on any statements they have made,” he said.

Tensions over oil drilling in the Bahamas increased in the weeks leading up to the election after it became known that Prime Minister Christie was a former consultant for the oil company’s Bahamian legal team.

Mr Christie said he was hired through the law firm of Davis & Co, which was headed by now Deputy Prime Minister Philip “Brave” Davis.

Graham Thompson & Co, of which former PLP attorney general Sean McWeeney is a partner, was also listed on the BPC’s website, as was PLP candidate for Killarney Jerome Gomez as its resident manager. However, Mr Gomez lost the Killarney constituency on May 7 to Dr. Hubert Minnis.

In late May, BPC said they are not discouraged by the fact that oil testing off the coast of Cuba yielded no results.

BPC chief operating officer Paul Gucwa said that while successful drilling in Cuba would have been encouraging, the results do not mean there is no oil in the Bahamas, nor does it affect oil drilling efforts.

Dr Gucwa added BPC intends to drill in a different geographical area and from their research it was not unexpected that the Scarabeo-9 drilling off the northwest of Cuba hit a dry well.

“A good result in their drilling would have been good news – however, from our research it was an expected result,” he said.

September 05, 2012   Tribune242  

Caribbean Blog International

The Christie-led government has remained noncommittal concerning oil drilling in The Bahamas

PM still committed to referendum on oil drilling

By Candia Dames
Guardian News Editor
candia@nasguard.com

While a referendum on oil drilling is not currently the priority of the Bahamas government, Prime Minister Perry Christie told The Nassau Guardian he remains committed to such a referendum.

But he said “there would have to be serious indications that there is oil and natural gas in commercial quantities”.

“I committed my party to if we are going to have oil drilling in The Bahamas while we are in power, we will do so by seeking the support of the people of The Bahamas, so the answer is yes,” said the prime minister when asked recently by The Nassau Guardian whether the referendum was still planned.

He said,  “One of the dangers for The Bahamas is that concessions are being given to explore in the same area by the Cuban government and it would be a very interesting development as they are in a position to start exploring and digging a well before us.

“If they were to find a well then it makes it almost a compelling case for The Bahamas having to do the same thing.  And so, we’re not going to look a gift horse in the mouth and play crazy with it.

“But at this particular time we have to continue to assess where we are on that subject matter to see whether in fact the company (Bahamas Petroleum Company) is in a position to finance drilling because it’s a huge sum of money involved in that.

“This is not a $50 million or $60 million kind of enterprise.  This is a hugely expensive enterprise, particularly with the environmental safeguards that should be in place.

“And so, at some stage or the other the company will come forth to us to say,  ‘listen, we are ready to do the following things and this is the evidence we have that you have fossil fuels there’ and we’ll see.”

Bahamas Petroleum Company (BPC) has committed to spudding its exploratory well in Bahamian waters by April 2013, although recent reports from the company indicate this drill date could be pushed back later in the year.

BPC is looking to bring on an operational and equity partner for the drill, The Nassau Guardian previously reported.

The Christie-led government has remained noncommittal concerning oil drilling in The Bahamas.

“We do believe that the Bahamian people ought to be consulted,” said Kenred Dorsett, the minister of the environment, previously. “Whether it goes the extent of a referendum, that will have to be determined based on the costs. That is a matter for the Cabinet to decide.”

Prior to the election in April, the previous government suspended BPC’s oil drilling licenses. There has been no formal announcement from the new government as to whether these licenses have been renewed.

The Christie administration has also committed to a referendum on gambling, which the prime minister has said will be called by the end of this year; and a constitutional referendum on citizenship matters, which the government intends to call before the end of the term.

Aug 13, 2012

thenassauguardian

Caribbean Blog International

Setting the record straight on oil exploration in The Bahamas

Setting the record straight on oil exploration

By Dr. Paul Crevello

Politicizing is common in election years, especially when the initiator is feeling pressure to undermine his opponent.  It is happening in the U.S. presidential race, and it is certainly evident in Bahamian politics.  In this case, in reference to Bahamas Petroleum, what is being stated in the press needs attention.

As former CEO of Bahamas Petroleum, I was present when our licenses were submitted and approved and wish to clarify misconceptions.  I felt it was necessary to step forward and comment on the process BPC went through when applying for the exploration licenses, which was an arduous process with multiple stages of dialogue between the responsible agencies of the government, from the respective ministries, the Cabinet, the attorney general and eventually approval by the governor general.  The process took nearly two years and in the end was awarded under the Progressive Liberal Party (PLP) term in 2007.  But, I wish to point out that the licenses were reviewed immediately upon the Free National Movement (FNM) entering office in May of 2007, and the FNM administration confirmed that the licenses were awarded following established government guidelines set in place by the Petroleum Act.  Therefore, the license application and approval process followed established government procedures, which was a multi-stage approval process that in the end both major political parties reviewed and approved.

What is important is the potential benefit to the country if oil is present and producible, and nothing more leaving politics aside.  There is oil in The Bahamas, but we do not know how much and if there is sufficient pool to be developed.  If so, then the people will be the ones who benefit over the long-term if the process continues to follow legal stipulations of the government and adhere to international safety standards.

Background

Both parties have awarded exploration licences in the past.  In 1983, the law firm of Christie and Ingraham was engaged by Tenneco for approval of drilling a well (drilled in 1986) in the southwest Bahamas.  In October 1999, the FNM awarded exploration licenses to a private “minnow” oil company, Liberty Oil concession, whose owner is a real estate developer, and in 2003, the PLP awarded exploration licenses to the U.S. major oil company Kerr McGee.  The PLP awarded licenses to BPC in 2007 and it became a publically traded company on the London AIM exchange in 2008.  Yes, we engaged Davis and Co. to represent the company and file our license applications.  But they were the only law firm qualified in the oil and gas sector and had experience with Kerr McGee.  So they were and still are the top firm in this field.

It took me several years to convince the Christie regime that there is a probability that commercial pools of oil may be discovered in The Bahamas.  Major oil companies have spent over a hundred million dollars in seismic exploration and drilling five wells in The Bahamas since 1948, all without mishap.  I had commissioned about US$50 million of technical studies, which were recently reported to have a one in two chance of finding four billion barrels of oil.  However, finding it is not the same as being able to get it out of the ground.  It is a complex process and could result in a multi-billion-dollar investment and still many years away from when the first well is drilled.

When the FNM took office in May 2007, I had to gain the confidence of the new administration that The Bahamas may become another Middle East – i.e., net oil producer and exporter.  It took me a couple of years and numerous presentations to convince the new government of this potential, and then it was at that time I introduced the government to the partnership I signed with Statoil of Norway, including audience with Prime Minister Hubert Ingraham.

During the FNM regime, I provided consultation to the Ministry of Foreign Affairs as to the location of the potential oil fields of the southern Bahamas waters, so these areas would be preserved for The Bahamas during negotiations with Cuba on the position of the international border.  I did not want this to be lost in negotiations.

I also suggested that the government initiate dialogue with the respective agencies of Norway, in order to learn how a fishing and lumber-dominated economy went to being one of the wealthiest sovereign funds in the world.  The ministry began dialogue with the government of Norway through political channels on drilling policy and establishment of a sovereign fund.  The FNM government was evaluating the necessary steps required to moving to an oil-producing nation and net exporter if oil was discovered.

Then, BP oil spill in the Gulf of Mexico occurred in April 2010, and rightfully, the government chose to proceed with caution in evaluating the full impact of drilling in The Bahamas, establishing the safeguards to prevent a similar situation from happening in The Bahamas.  The FNM still discussed procedures with the Norway counterparts to strengthen policies for The Bahamas.

Regarding the licenses, Alan Burns, the founder of BPC, first applied for exploration licences in August 2005, following the protocol of the Bahamian Petroleum Act, which was based on UK North Sea regulations.  At the time Burns applied for the exploration licences, the last major entry into The Bahamas exploration was Kerr McGee in 2003, exiting in 2006.

BPCs license applications went through three approval processes; firstly with Minister Leslie Miller of the Ministry of Energy in early 2006.  Then following revisions, provisional approval was granted in late 2006 by the Permanent Secretary Camille Johnson, with final approval signed into effect in early 2007 by Dr. Marcus Bethel, minister of energy and the environment.

The applications then went to Governor General Arthur D. Hanna, whose duty it was to assess the merits and benefits to the country of assigning government lands for exploitation.  As would be expected of a request of such importance, the governor general invested considerable time in reviewing the agreements.  Hanna and the PLP administration (Cabinet and PM Christie) insisted that environmental guidelines and protocol be inserted into the licenses to protect the environment, even though the protocol was not required by the Petroleum Act.  I complied with the insertion because, as an environmentalist, my belief was that we as a company explore with the intention of preserving the environment for future generations.

Upon acceptance of the company’s revisions, the licenses were approved by Hanna, whose authority it was to grant government titles and licensing of Commonwealth lands.  The licenses were signed into effect in April 2007.  This process was not new to the governor general, as he had approved similar applications for Liberty Oil and Kerr McGee.

I ran about eight focus groups with Joan Albury of The Counsellors Ltd. throughout the major cities in The Bahamas, with a general cross section of the population participating.  The majority were in favor of progressing oil exploration after learning about the company and the safeguards it would follow, the potential for discovery of petroleum and the potential benefits to the people and the government.  So in essence, it was received very favorably and these fora were done after the BP Gulf of Mexico oil spill in, I believe, either late 2010 or early 2011.

The landscape

The U.S. government has determined that the BP Macondo spill was by human error.  The oil zones (reservoirs, oil occurs in tiny spaces within rock layers much like water in an aquifer) in the Gulf of Mexico are under very high pressure because of geologic conditions related to burial of soft sand under the Mississippi delta.  In contrast, the reservoirs drilled to date in The Bahamas, south Florida and Cuba are normal unpressured layers because of the hard limestones.  Low pressure in these limestone reservoirs has been established from hundreds of wells drilled in the region.

The last well to be drilled in The Bahamas was in 1986 by Tenneco in the southernmost part of Great Bahama Bank, which was drilled in the shallow part of the bank, closer to Cuba than to Andros island.  Prior to that, four other wells were drilled between 1948 to 1972 in The Bahamas, and none of the wells suffered any mishap: two onshore wells, one on Andros and another on Long Island; and two “offshore” wells drilled in pristine aqua waters of the shallow bank, one just north of Bimini visible from the Great Isaac lighthouse, and another well was drilled in the center of Cay Sal Bank.

And all wells had positive shows of oil and or gas.  The areas were left pristine as before drilling and there was no reported impact on the environment.  A U.S. government report (USGS by Dr. Eugene Shinn) reported on the numerous wells drilled in the Florida Keys and that there was no impact on coral reef environments.

Drilling has been conducted safely and successfully in The Bahamas in the past.  Wells will be drilled on the Cuban side of the boarder, within 10 kilometers or closer to the international boundary with The Bahamas in the coming year.  Oil spill models that I commissioned and recently reported by the company show that if a spill would occur, which would not be a high pressure Macondo-type blowout, then the probability of the spill making landfall on Bahamian beaches is less than a tenth of a percent, nearly zero.

Let government regulations, public fora and the best interest of The Bahamas decide on the potential of the petroleum investment, not politics, rhetoric and ivory tower special interest groups.  I believe once the election is past, the Government of the Commonwealth of The Bahamas owes it to its people to test the potential for oil pools in the south, adjacent to the boundary with Cuba.  Cuba will be testing its side of the border, shouldn’t The Bahamas at least hope that “it could be so lucky”?

• Dr. Paul Crevello is CEO of Discovery Petroleum.  He is also the former CEO of the Bahamas Petroleum Company.

May 11, 2012

thenassauguardian

Caribbean Blog International

The Progressive Liberal Party (PLP) statements on oil drilling in The Bahamas appear to be more equivocal than the Free National Movement (FNM) government... ...Comments from former Cabinet minister Leslie Miller have not added clarity to the opposition’s view on this matter...

The question of oil drilling

thenassauguardian editorial

Whether or not to drill for oil in The Bahamas is a complex and multifaceted issue requiring extensive study and an open and transparent public debate.  As the role of the government will be critical in this process, the major parties have an obligation to clearly outline their full views on the matter in the lead-up to Election Day.

Two weeks ago, Opposition Leader Perry Christie confirmed to The Nassau Guardian that he served as a legal consultant to Bahamas Petroleum Company (BPC).

He stated, “I consult on work the firm deems I am qualified by the office I’ve had, with the knowledge that I have in terms of government.”

He further stated: “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.”

One must presume that Christie was paid for this consultancy work.

A week later, we reported that Christie backtracked on his original statement to this newspaper saying that his consultancy with BPC ended some time ago, but he did not provide a date as to when.

Voters must have no doubt as to whether any of the major parties and their leaders will have a conflict of interest on the matter of oil drilling.

We note that Progressive Liberal Party (PLP) Deputy Leader Philip Brave Davis, the principal of Davis & Co., serves as a legal consultant to BPC.  He would likely serve as deputy prime minister in a Christie government.

For his part, Christie needs to answer why he backtracked on his original statement.  He must also answer a series of other questions raised by the consultancy relationship with an oil company to which his former government gave exploration licenses, and which a possible future government of his will be asked to provide additional licenses for exploration and drilling to the very same company.

Various characterizations have been made of Christie’s consultancy and his mixed statements on his work on behalf of BPC through Davis & Co.  Christie will need to address a number of these.

Prime Minister Hubert Ingraham has noted his party’s position: “I have said before, in the media and in the House of Assembly – 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.

“I am not unmindful of what happened in the gulf off the coast of Louisiana just two years ago.  And certainly we do not have the resources, human or financial, nor the billet, to respond as the United States government responded.

“We are not now in a position to so regulate and oversee drilling operations in our waters.”

The PLP’s statements on oil drilling appear to be more equivocal than the government’s.  Comments from former Cabinet minister Leslie Miller have not added clarity to the opposition’s view on this matter.

The general election is less than a week away.  Unexpectedly, the question of oil drilling may play a decisive role in its outcome.  It is a question with many facets such as economic development, environmental protection, and accountability and transparency in government.

Even as the parties address other issues, they will have to speak more to the issue of oil drilling.  This includes safeguarding a transparent governmental process on such a critical issue and crystal clear clarity on any conflict(s) of interest.

May 03, 2012

thenassauguardian editorial

Caribbean Blog International

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

...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

Bahamas Government has suspended the consideration process for all oil exploration and drilling applications...

Govt suspends consideration process for oil exploration
By TANEKA THOMPSON
Tribune Staff Reporter
tthompson@tribunemedia.net:



GOVERNMENT has suspended the consideration process for all oil exploration and drilling applications until the country has stringent environmental protocols in place to mitigate against a catastrophic oil well leak.

According to Environment Minister Earl Deveaux, the new stipulation comes in response to British Petroleum's (BP) devastating oil leak in the Gulf of Mexico - which threatened fragile marine ecosystems and fishing industries - and the large volume of oil exploration applications inundating the government.

"The Ministry of the Environment has suspended consideration of all applications for oil exploration and drillings 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 explorations," said a statement released by Dr Deveaux yesterday.

The release added that all existing licenses will be reviewed to ascertain any legal entitlement for renewal.

"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," said Mr Deveaux when asked to clarify this point yesterday.

BPC Ltd recently partnered with Norwegian oil heavyweight Statoil to search for oil in some 2.5 million acres in Cay Sal Bank and hold five licenses for oil exploration. The government has not issued any licenses for oil drilling in Bahamian waters.

Environment Permanent Secretary Ronald Thompson said that while the ministry has yet to draft the necessary safety protocols, government will frame its future policies around existing ones from other countries.

"We haven't drafted any but there are ones that are in existence in other places where oil is currently being harvested or explored. We will in short order review all of those and come up with what we think will be the best (policies) for the Bahamas," said Mr Thompson.

Deepwater Horizon's oil rig exploded on April 20, killing 11 workers, and leaking an estimated 4.9 million barrels of oil from BP's underwater well.

Yesterday's statement said that calamity underscored the need for precautions.

"Given recent events involving oil exploration and the efforts to prevent pollution, this prudent safeguard is essential to preserving the most vital natural resource of the Bahamas - its environment," said the statement.

Speaking to The Tribune, Mr Deveaux said more stringent protocols could have prevented BP's disaster. "Everything we learned about BP suggests that there were a few mishaps that could have been avoided," he said.

In May, Dr Deveaux said it would be "impractical and unreasonable" for the Bahamas to shy away from oil exploration or drilling as a consequence of the environmentally devastating oil leak off the coast of the US state of Louisiana.

"The world is not going to shy away from oil because of this accident. This is not the first or the last," he said at the time.

He also said earlier that proper management of resources would be vital to any oil discovery in Bahamian waters.

August 31, 2010

tribune242

Bahamas Blog International

There is a "very, very high possibility" that oil will be found in Bahamian territory as a result of exploration currently underway

'Very high possibility' oil will be found in Bahamian territory
By ALISON LOWE
Tribune Staff Reporter
alowe@tribunemedia.net:


THERE is a "very, very high possibility" that oil will be found in Bahamian territory as a result of exploration currently underway, Environment Minister Earl Deveaux has said.

Meanwhile, the environment minister stated that the catastrophic consequences of the recent Deepwater Horizon oil spill in the Gulf of Mexico will "directly affect (The Bahamas government's) approach" to how it manages any oil or gas resources that are discovered.

"We would have the top experts in the world advising us and would certainly look for the best in class to ensure our oversight of any oil exploration or drilling in The Bahamas is done with the highest safeguards," said Dr Deveaux.

He said his understanding about the likelihood of oil being found in Bahamian territory, where a number of companies currently hold licenses for such activity, is based on conversations he has had with persons involved in the industry, who have to come to his Ministry to seek permission to go ahead with exploration in The Bahamas, and from findings in neighbouring countries like Cuba.

Dr Deveaux said it would be "impractical and unreasonable" to say that the Bahamas would shy away from oil exploration or drilling as a consequence of the potentially environmentally-devastating oil spill that officials are currently seeking to contain off the coast of the US state of Louisiana.

"The world is not going to shy away from oil because of this accident. This is not the first or the last," he added.

While such comments may not be news to the ears of environmentally-conscious Bahamians who would fear the impact of an oil spill in Bahamian waters, other comments from the US Coast Guard official overseeing the Gulf of Mexico oil spill may be.

Commandant Admiral Thad Allen yesterday told the US-based CBS news show "Face the Nation" that there is at present a "very, very low probability" that the oil slick released from the Deepwater Horizon spill will travel around the Florida coast and affect the east coast of the United States.

Fears had been raised that if the slick were to come in contact with the "loop current" - a warm ocean current that moves clockwise through the Caribbean Basin to the Gulf of Mexico and then the Florida Straits - Bahamian waters and islands could be affected.

While the situation remains relatively unpredictable, Commandant Admiral Allen told the Sunday morning news show that the loop current "is significantly south of the southern edge of the spill right now."

"I think it is a very, very low probability it will be impacted," Allen added, noting that the National Oceanic and Atmospheric Administration is studying the issue. "It does not appear to be a threat right now," he said.

At present it is estimated that 5,000 barrels or 210,000 gallons of oil are being emitted from the site of the Deepwater Horizon oil well, following the explosion and subsequent collapse of the oil rig there, which is licensed to British energy company, British Petroleum.

Efforts to stymie the flow of the oil were setback over the weekend after plans to drop a 98 ton "containment dome" over the oil leak and siphon oil to the surface did not go as planned.

The placement of the dome was postponed after engineers noticed a build-up of crystallised gas inside the chamber.

Commandant Admiral Allen stated that officials are now considering using a "junk shot" to stem the flow of oil.

This would involve shooting a mix of debris - including shredded tyres and golf balls - into the well at high pressure to clog it.

Meanwhile, crews have begun to drill a relief well into which oil from the original well could be channelled, but this is estimated to take between one and a half to three months.

May 10, 2010

tribune242

Bahamas Blog International

Time to rethink oil drilling in The Bahamas

Time to rethink oil drilling in Bahamas
tribune242 editorial:


WORLD WAR I was supposed to have been the "war to end all wars," until 21 years later the mistakes made around the negotiating table of that war spawned World War II. Since then the world has been involved in many skirmishes of varying proportions.

A few minutes past midnight on March 24, 1989 the oil tanker Exxon Valdez struck a reef in Alaska's Prince William Sound, spilling 11 million gallons of crude oil over 470 miles, leaving behind an environmental nightmare that the world had never seen before -- and hoped it would never see again. The initial cleanup took three years and cost more than $2.1 billion. The deadly toll on wildlife will never be known.

As a result of the Valdez accident an unsuspecting public would no longer believe a corporation's word that its operations are completely safe.

The Alaskan disaster resulted in tighter environmental regulations being imposed on various industries. "The most important regulation attempting to protect against a repeat of the spill," said one report after the accident, "is the modern standard for tanker ships, which now must be built with double hulls, so that if the outer skin is punctured, no oil will leak."

Ostensibly the Valdez was an oil spill -- like World War I -- that was to end all oil spills of such magnitude. But then there was April 22 -- just 11 days ago -- when BP's oil rig exploded in the Gulf of Mexico, spewing out an estimated 200,000 gallons of oil a day, with still no sign of letting up. Eleven persons were killed. Ironically, the chaos erupted as the world celebrated Earth Day.

According to reports BP hopes to deploy a giant, 40-foot steel funnel within the next few days to attempt to trap much of the leaking oil at source. However, while the technique has worked in shallow water, it has never been done under a mile of ocean.

It is forecast that this spill will be far worse than the Exxon Valdez tragedy and will threaten even more extensive areas, killing wildlife, destroying beaches, and annihilating the livelihood of hundreds of fishermen, and allied businesses. Bahamians are holding their collective breath that the wind currents don't shift, sending the oil splashing on our shores.

Although, now is not the time for fingerpointing as every resource is being used to stop the flow and spread of the life threatening oil, shortly after the explosion it was suggested that BP's oil rig did not have what is known as a blow-out preventer. It was claimed that cost was a consideration. However, as the news continued to flow as fast as the oil, it was reported that although BP had the preventer, the equipment had malfunctioned.

Apparently, blow out preventers, which would have capped the spill, are mandatory in Norwegian and Brazilian offshore oil drills, but not in oil drills off the United States. It was claimed that regulation of these drills are not sufficiently strict.

This was a spill that after the Valdez was not meant to have happened. But it did.

In May last year it was predicted -- almost jubilantly -- that the Bahamas could be an oil producing company within 10 years. As far back as we can remember oil companies have been poking around in our waters prospecting for oil. So far nothing has been found. In view of what is now happening in the Gulf, it is probably a blessing, and could be a warning that fate should not be tempted.

In March, when asked about the two companies that have raised £2.4 million to increase working capital to invest in deep water drilling in the Bahamas, Phenton Neymour, minister of state for the environment, said the government was "proceeding cautiously."

In view of what is happening in the Gulf, we suggest that government turn its back on oil and think in terms of more environmentally sustainable methods to provide our needs.

Remember there has never -- and will never be a war -- to end all wars, unless it is the final war. Nor will there be an oil drilling accident that will end all such accidents. But if we don't take heed and realise that no matter what proud Man believes, it is Nature that has the last word, an oil drilling accident in these waters could be the final curtain on a Bahamas that we once knew.

It is true, that an oil find in our waters would mean tremendous wealth, but it could also mean tremendous tragedy.

And as we should all know by now, money is not everything -- as a matter of fact one wise man warned that it is "the root of all evil."

May 04, 2010

tribune242

Bahamas Blog International