Prime Minister, the Right Honourable Freundel Stuart (centre) and Minister in the Office of the Prime Minister, Energy, Immigration, Telecommunications and Invest Barbados, Senator the Hon. Darcy W. Boyce (right), listen as Executive Vice President of Repsol S.A, Joseba Murillas (left), makes a point at yesterday’s ceremony.
Barbados is again seeking to find petroleum resources in its territorial waters. This time a Madrid-based energy company, which has other operations in the region, has been awarded one of the island’s offshore blocks.
Speaking at a ceremony yesterday afternoon at Ilaro Court to officially award the Black Belly Offshore Block to Repsol S.A., Prime Minister the Right Honourable Freundel Stuart said the opportunity presented by this partnership is encouraging and timely, given the harsh and wide-reaching constraints that have been placed on the oil and gas industry as a result of the current low oil price environment. In fact, he said the island’s “blossoming partnership” with Repsol will send a clear message to the industry that Barbados remains committed to the development of its offshore petroleum sector.
He made the point as he indicated that the finding and successful exploitation of commercial petroleum resources off Barbados will be a crucial feat for the country. As such, he said, the steps being taken to develop the offshore sector, not only have the potential to generate revenue and to help diversify the economy, but are also avenues through which a lasting contribution can be made towards the social, professional and educational development of all Barbadians.
Prime Minister Stuart’s comments came as he noted that through this award, the country is partnering with one of the world’s most highly respected and pioneering oil and gas companies.
“We are pleased that Repsol has ranked Barbados, and by extension, the greater Caribbean/South American region, as one of its core development and investment areas. It is our firm belief that the company’s excellent track record, in relation to the exploration, development and production of oil and gas resources, as well as its knowledge of and experience in the region, makes it an ideal partner to assist the country in maximising its offshore petroleum potential,” he indicated.
With that in mind, PM Stuart said that as Repsol undertakes its work, Government expects that every effort will be made to preserve and protect the island’s coastal and marine environment.
In an effort to ensure that does happen, Acting Director of Natural Resources in the Division of Energy and Telecommunications, Jamar White, told the media after the ceremony, that it will be at least another year before the company begins exploration of the block that is to the west of the island, off Holetown.
“It is a careful process. What we need to do now is go and sit down at the table with Repsol and start to negotiate the terms and conditions of an exploration licence.
“Generally in the industry, that takes about a year or so, because it involves the preparation of an environmental impact assessment… and then Government has to sit down and review that EIA to ensure that all the information included in the EIA is correct, that it is sound and it addressed all the concerns of the Government in Barbados, in relation to environmental issues, issues related to marine wildlife in terms of air quality, water quality and in terms of the operations that the company is going to be drilling, and seismic operations,” he said.
White said the opportunity is indeed a significant one for the country, with the investment potential expected to increase as operations increase. He added that if commercial quantities of hydrocarbons are indeed found, it could lead to Repsol being awarded a production licence, which could spell greater economic and social benefits for the island, and opportunities for local businesses and individuals alike. (JRT)
