The Tribune

THE government said it has not renewed Bahamas Petroleum Company's licences to explore for oil in Bahamian territory.

The company's website claims all five licences were renewed on April 27, but the Ministry of Environment released a statement yesterday denying this.

It said: "On April 25, 2012, BPC submitted payment for the annual rental for its five petroleum licenses: Bain, Cooper, Donaldson, Eneas and Miami.

"Upon receipt of legal advice, this ministry advised BPC that it is presently unable to accept rental fees for the year April 2012-2013 as the government has yet to determine its course of action in connection with licence renewal.

"Contrary to the stories appearing in today's dailies, BPC's licences have not been renewed."

At press time last night, BPC's website still claimed the renewals came into effect on April 27 and that the terms include a commitment to "spud an exploration well" by April 26, 2013.

"The next renewal of the licences, due to take place on 27 April 2015, is contingent on the company having met its drilling and expenditure obligations during the current three-year period," the website said.

This comes after PLP leader Perry Christie promised that if elected next Monday, his government will not allow oil drilling without gaining the consent of the public through a national referendum.

The PLP has been under fire for its connection to BPC, which used Mr Christie's consultancy services in the past, through the company's legal representative, the law firm of deputy leader Philip "Brave" Davis.

PLP candidate Jerome Gomez had also been the oil company's manager in the Bahamas.

However, Mr Christie has denied he is still connected to BPC in any way, and threatened to sue over claims he is still a paid consultant of the company.

As for the FNM, Prime Minister Hubert Ingraham has repeatedly said no drilling for oil will take place in Bahamian territory until regulations and environmental safeguards are in place.

He said: "The approval of drilling for oil in the pristine waters of The Bahamas is among the most momentous decisions that any Government of The Bahamas will ever have to make."

Mr Ingraham called it a decision with wide ramifications that will affect the "very nature and essence of who we are as a country".

He said a government led by him "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" in a way that protects the environment.

For its part, the DNA issued a statement yesterday claiming the government has secretly assured BPC that it will be allowed to drill after the election.

The fledgling party said the Prime Minister's statements caused BPC's stock to "nose-dive as uncertainty around oil drilling in the Bahamas was heightened and the renewal of the licenses were apparently in jeopardy" - but, two days later, the stock mysteriously rose by almost nine points.

It said: "Clearly, the government met with BPC privately and assured them that the FNM government would renew their licenses and allow oil drilling if elected to office."

The DNA statement was released before the government denied the renewals, and the party said its claims were vindicated "by the fact that BPC's licenses have been renewed".

Calls to BPC's Nassau headquarters were not answered for the second day in a row, and the company has remained silent throughout the political campaign.