By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
A Bahamas-based oil explorer yesterday hailed the receipt of all necessary environmental approvals from the government as "a massive milestone" towards drilling its first exploratory well.
Simon Potter, pictured, the Bahamas Petroleum Company's (BPC) chief executive, told Tribune Business that it took "huge encouragement" from the granting of Environmental Authorisation for the well it plans to drill in April 2020.
The go-ahead from Romauld Ferreira, minister of the environment, effectively removes the last major obstacle to BPC targeting a sub-sea structure in which up to 800m barrels of oil could be held based on seismic testing and other geological studies.
If the presence of oil is proven at that location, Mr Potter said "close to 2bn barrels" would likely be present in a surrounding field that stretches for 80 kilometres, taking the discovery "up to the field size they're finding in Guyana".
The BPC chief confirmed that the oil explorer received Environmental Authorisation approval, confirming that the government is satisfied with all environmental, safety, security and health measures it is taking, late on Wednesday evening after the Bahamas Environment, Science and Technology (BEST) Commission gave a "no objection" to submissions involving ten years' worth of work.
He added that the extensive analysis of both BPC's Environmental Impact Assessment (EIA) and Environmental Management Plan (EMP) should reassure environmental activists and others opposed to oil exploration activities in Bahamian waters that any risks associated with its project had been minimised to negligible levels.
And, recalling how he was recently asked on a radio show whether The Bahamas can afford to accommodate BPC's activities, Mr Potter said he responded by saying: "Can you afford not to do this" given the economy's rising debt and high unemployment levels that have been further exacerbated post-Hurricane Dorian.
"This is a massive encouragement to us," Mr Potter told this newspaper of the Environmental Authorisation approval. "We've been able to work collaboratively and collegially with the Government and their advisers over an extended period of time to deliver this.
"The original question was: Is this a big milestone? The answer quite simply is: Yes. To illustrate how big a deal this is, we started the work in 2010 when we began to collect the environmental data and how to implement processes and procedures to cause the drilling of a safe and environmentally responsible well."
BPC's original EIA was accepted by the BEST Commission in 2012, but the oil explorer had to wait a further four years for Parliament to pass laws strengthening the oil exploration regulatory regime - enhancing it to international standards - before further progress could be made.
Mr Potter said this introduced an "extra tier, layer of approval" that BPC had to go through. It submitted its Environmental Authorisation application, including both the EIA and EMP, in 2018 and has for the past two years been working with the BEST Commission and its consultants, Black & Veatch, to address any concerns and issues before the final approval was granted.
"It's a big milestone, so I'm pleased and very proud of the people in this organisation, especially the Bahamians, who worked over such a long time at such high at such high standards," Mr Potter said.
He explained that the environmental data collection effort had involved at least five ship-based surveys of the area where BPC planned to drill its first exploratory well using remote cameras to go down and assess the seabed.
The ocean currents, waves, tide and wind were also extensively studied, while BPC also conducted "unique" mapping exercises across entire sectors of The Bahamas to study coastlines, flora and fauna.
BPC also had to satisfy BEST and its advisers over its planned responses to certain incidents and hazards that might occur, and demonstrate that this was adequate to handle the situation.
"It was not just about the environment either in terms of the documentation and scope of work we had to do," Mr Potter added. "It covers social responsibility, community engagement and the extent to which people have a voice with regard to this particular piece of work.
"It covers operational health. We're quite familiar with the issue of the coronavirus. As we bring staff to the rig from many nations around the world we have to be very clear how we deal with operational health as they come off the rig and back."
The BPC chief said safety is another big element covered by the Environmental Authorisation, along with security and the need to enforce a 500 metre exclusion zone around the rig in compliance with international standards and best practices.
Addressing the continued scepticism of environmentalists, Mr Potter said the project had several features that will mitigate any adverse impacts. "First of all, the location," he told Tribune Business. "The location is over 100 miles from Andros, and sits in a shipping lane adjacent to the maritime border with Cuba.
"It is 15 miles from the border, and the closest landfall is Cuba. It's a very distant and remote location. The rig is effectively a ship that sits in the shipping lane. It will be there very temporarily - probably for 45-60 days. It's there for two months and then will leave.
"The third thing is it's an exploratory well. While we certainly think oil is there, it's not proven until we drill down and find it. We may not find any there. We're not drilling in pressured zones. We're not going to produce with this well," Mr Potter continued.
"The process has eliminated a lot of the uncertainty, but the Environmental Authorisation process has sought to identify all the issues and to hold us to account so that we have systems and responses to these hazards identified. In terms of this being a hazardous operation it's relatively benign. It's our intent not to have any incidents, and the whole purpose of this planning process over 10 years is to make sure we don't."
Mr Potter said BPC can now focus on logistics and execution of its first exploratory well, Perseverance One, with the Environmental Authorisation behind it. The well will be located on the northern part of an 80 kilometre long structure that the oil explorer believes has strong prospects for producing a positive discovery.
"We're targeting close to 0.8bn barrels in this segment of the structure," Mr Potter revealed. "If we find oil there, almost inevitably there will be oil in the rest of the structure and that will be close to 2bn barrels, which kind of gets you up to the field size they're finding in Guyana.
"From a government point of view it will be a considerable additional income stream to the economy. If we are successful there it completely removes the geological uncertainty associated with the rest of the structure."
BPC said in a statement that itself and the Government have agreed to resolve the amount of licence fees it owes for the period to 2018, and the two years to December 2020, within the next 60 days.
Mr Potter was quoted as saying: "On the way to delivering our single-minded goal of safely completing the drilling of the Perseverance No.1 exploration well there will be no more important milestone than receipt of Environmental Authorisation from the Government of The Bahamas.
"Today's approval reflects our steadfast commitment to ensuring that Perseverance No.1 will be drilled in an entirely safe and responsible manner, in full compliance not only with the stringent laws and regulations in place in The Bahamas, but also in accordance with all applicable international standards, and adherence to global best practices as defined by the guidelines and performance measures adopted by multiple international agencies."
Comments
Old_Salt 4 years, 10 months ago
So the Bahamas have sold their soul to the oil industry. Shame On You! So you say it's only an exploratory well you're drilling. So was the Deep Water Horizon drill well in the Gulf of Mexico almost 10 years ago that killed 10 workers and devastated the Gulf. The Bahamas have far too much to lose and very little to gain by selling out to the oil industry. Follow the money and you will find the truth as to why this dirty and dangerous business is being allowed to set up shop in your beautiful island nation. Mr. Hartnell this might be the most bias reporting I've ever seen. Are you a tool of the oil industry as well?
Porcupine 4 years, 10 months ago
Had education been a priority in this nation's past, the people of The Bahamas would be in the streets demanding the resignation of the Prime Minister and the Minister of the Environment on this matter alone. Instead, in the coming years, sooner than later, the wealthy, the politicians and the CEO of BPC will be the first to leave these islands for higher ground. The vast majority of Bahamians will be on their own. Having been promised their pie in the sky Sovereign Wealth Fund, only to find mere pennies in the account. It is amazing how bankrupt we will be then; Monetarily bankrupt, Intellectually bankrupt, morally bankrupt. With not a thought to those who come after us. I can think of no more irresponsible act in the history of The Bahamas than drilling for oil here. One of the saddest commentaries on how Bahamians feel about, and are treating this miraculous chain of islands and pristine waters; with such disrespect..
Well_mudda_take_sic 4 years, 10 months ago
You're absolutely right. And we have none other than Minnis to thank as a greedy desperate buffoon with tiny (rat size) balls.
Well_mudda_take_sic 4 years, 10 months ago
Minnis is personally to blame for putting our environment at grave risk from BPC's exploratory drilling activities. He should have long ago put the brakes on this exploratory drilling foolishness by BPC, a small two-bit penny stock company. BPC is not a BP (British Petroleum), Chevron, Exxon-Mobile, Royal Dutch Shell or other similar multi-billion dollar global oil conglomerate that the Bahamas could at least seek financial restitution from in the event of a major environmental disaster like the Deep Water Horizon incident in the Gulf of Mexico.
Hell, BPC is nothing but a small venture capital company with zero drilling expertise and experience of its own and with limited resources to hire the right kind of experienced expertise and pay for adequate insurance coverage in the event of a major polluting incident. Minnis probably knows nothing about the insurance arrangements his office (the Office of the PM) should have insisted be put in place by BPC with the Government of The Bahamas named as loss payee. Because BPC can't afford the high insurance premiums associated with its high risk operations, the insurance coverage amounts are likely to be wholly inadequate in any event.
TalRussell 4 years, 10 months ago
Wasn't consecutive government comrades not alarmed sufficiently - after the Horizon deep water blowout spillage of millions of barrels of oil into waters contiguous to the colony's waters. The potential consequences from sludge oil drilling to colony's vital tourism.No set leaders must never be allowed to place such a destructive risk anywhere in o about our waters.
concerned799 4 years, 10 months ago
It would put the Bahamian economy into total depression for years and collapse the dollar peg and put everyone in financial ruination if there was a spill. Mexico had a giant spill, the US did years ago too, and even Canada did too! There is no chance we could outperform the regulation and inspection regimes of all of them and have nor risk.
concerned799 4 years, 10 months ago
Where is the confirmation we have pulled out of the Paris Agreement on Climate which would allow for us to increase fossil fuel use/production and start oil drilling? Can someone point me to the ink where this exit of Paris has been officially communicated?
Bahama7 4 years, 10 months ago
Excellent news- good luck BPC.
There is oil in the Bahamas, definitely. The old folks know how it’s there. We just don’t know how many billion barrels we will be producing in a few years time.
It will be nice to find out in May.
laallee 4 years, 10 months ago
A commercially viable oil find could transform the Bahamian economy. All around other Caribbean countries are exploring/producing oil- Do you really want to sit and watch? Revenue used wisely can promote green energy usage, education and better health care for generations. Stop moaning and take advantage of BPC and it's investors who will be paying all the costs!
Porcupine 4 years, 10 months ago
Paying all the costs. You are completely ignorant of economics. Every person on earth pays the cost of our deadly fossil fuel use now. In health, in economic subsidies, in dealing with the disasters, both short and long term. Were the investors the only ones who paid for the Horizon oil spill? Or was it all life forms and the economy of the Gulf Coast? Are you so ignorant , selfish and greedy that you can't even acknowledge the basics? Or, is there more to your interest in this intellectual failure of our nation?
Well_mudda_take_sic 4 years, 10 months ago
Good luck thinking you will ever benefit in any way from the activities of BPC. You're better off continuing to give away your money to that web shop thug, Sebas Bastian.
concerned799 4 years, 10 months ago
Oil sure did wonders for the Venezuela economy didn't it?
How about we watch from pristine beaches and enjoy a tourist economy and we skip the alternate hell of oil soaked beaches and a ruined economy. Deal?
Moheganuncas 4 years, 10 months ago
Norway has Sovereign Wealth Fund and Bahamas is modelled on that. Norwegians are the most wealthy in Europe because of it and no probs with oil production, it is being produced safely there and Bahamas now has the most modern safety Regs in the world
With a small population everyone will be the richer if there is oil next to Cuba
All the Islands power stations can be replaced with Green, Homes and businesses can all get solar fitted from the Fund and have free electricity
Oil is used for many things than Energy, 54 percent of oil is used to make most over-the-counter medicines, various cleaning products, some rubber, tons of cosmetics, many lubricants and most of the world's asphalt.
Well_mudda_take_sic 4 years, 10 months ago
Comparing the Bahamas to Norway is a laughable stretch of anyone's most deranged imagination. Dream on my friend! LMAO
BahamaPundit 4 years, 10 months ago
Also, we have something called hurricanes, which make oil drilling an accident waiting to happen.
BahamaPundit 4 years, 10 months ago
This FNM have left me speechless. By far the most disappointing government administration this country has ever seen. Not even close.
BahamaPundit 4 years, 10 months ago
If anyone remembers, the Bahamian people were promised a referendum on oild drilling. However, the FNMs decided we don't deserve a vote and to unilaterally decide the fate of our country.
TalRussell 4 years, 10 months ago
The Norwegian comrades see their government as both a market driven and a planned economy. I asks, what exactly can be pointed to as having been either a market driven or planned, executed or functionally operational* economy - by, or under this - or the previous - governing administrations? Reads more like two same dysfunctional peas in a pod.How is the government's buying and running of the Grand Lucayan Hotel - or the rental of an entire empty of paying guests floors of a hotel's rooms - be seen as a market driven and planned economy- then the very same government decides to bail out another hurricane damaged property owned by the same Whampoa that not only pocketed the insurance payout monies but kept all the rolls of toilet papers - unopened and open rolls toilet papers - just before the idiots running our government - took possession of the still left hurricane unrepaired hotel. Can't write this stuff.Just, can't.
JuanEllis 4 years, 10 months ago
The government should be held to account and ensure the revenues will be used properly. It could transform the economy, but it can also be wasted. The sovereign fund seems promising, lets see if they will use it for the people.
concerned799 4 years, 10 months ago
Only place in the world this ever worked was Norway. Odds we will follow Norway versus odds we follow all the others and almost none of it ever sees the common man? Pretty near 100%
jus2cents 4 years, 9 months ago
FACT: All oil wells leak.
This is just plain old greed driven insanity, only a few foreigners will benefit (If they ever find oil) and some political cronies will pocket som scraps.
The Bahamas needs leaders who think ahead, use developing technologies wisely and think out of the box, but all we have is brain dead dinosaurs making all the same mistakes they always have.
conian7 4 years, 9 months ago
I see some people blaming Minnis, he is but one in a parade of fools who have led to this day, every administration since th contract to allow exploratory drilling was signed has extended it beyond every deadline it failed to reach. All hold responsibility for where we are today.
Anyone who believes The Bahamas (Bahamian citizens) will truly benefit are deluded. Further we stand to lose far more than we will gain from this, things that money cannot replace,
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