Energy Minister causiously optimistic about Jamaica's oil prospects

 

With global oil prices continuing to fluctuate, Energy Minister Daryl Vaz says he remains causiously optimistic about Jamaica's petroleum prospects. 

 

In March, the minister had indicated that Jamaica would receive critical data on its oil and gas potential within two to

three months. 

 

This follows preliminary findings from exploration work carried out by United Oil & Gas, which confirmed the presence of hydrocarbons in offshore soil samples, an important early indicator of possible petroleum deposits of the coast of St. Thomas.

 

Making his contribution to the Sectoral Debate in the House of Representatives on Tuesday afternoon, Minister Vaz said the government continues to closely monitor the results as it assesses the country's long-term energy outlook. 

 

"We started at 10 per cent in 2016, and with the recent surveys we would have reached 30 per cent, which would mean that we will have interested parties to partner with United Oil & Gas, hopefully in due course. So further to developments in April this year, the latest updates from the ongoing exploration activities continue to support a cautiously optimistic outlook, while underscoring the need for careful evidence-based progression at each phase of the process."

 

He said the government remains measured in its approach, "recognising that any discovery will require significant investment, probably US$60-US80 million to drill one well, and we would have 14 rigorous environmental safeguards and are clear regulatory framework to guide development". 

 

Mr. Vaz said exploration aligns with the national commitment to environmental protection.