The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Environmental activists yesterday voiced optimism that the threat of further oil exploration and drilling in this nation’s territorial waters has ceased after The Bahamas joined a pact to phase-out fossil fuel use.

Casuarina McKinney-Lambert, executive director of The Bahamas Reef Environment Educational Foundation (BREEF), told Tribune Business it would be “a foolish industry” for this nation to permit after the Government signed the country on to the Fossil Fuel Non-Proliferation Treaty.

Hailing the move as “great news”, she argued that the move will “reinforce the country’s resolve” to safeguard the economy, its people and marine ecosystems from potentially devastating climate change impacts and “accelerate the transition to cleaner and renewable energy”.

The Treaty, which now has 16 state signatories and members after The Bahamas and Pakistan joined yesterday, commits countries to end the global expansion of fossil fuels, pursue “a just and equitable phase-out” of existing production and speed up the switch to environmentally-friendly sources of renewable energy.

“This is good news. We certainly applaud The Bahamas joining this,” Mrs McKinney-Lambert told this newspaper. “It reinforces the country’s resolve to protect its economy, our people and fragile ecosystems from the devastating impacts of climate change. It serves to end the expansion of fossil fuel use. Just as there is a nuclear non-proliferation treaty, quite frankly fossil fuels are dangerous to The Bahamas.”

She added that the pact’s objectives include a “just and equitable phase out of existing [fossil fuel] production, and accelerating the transition to cleaner and renewable energy. It’s a decisive step for The Bahamas. There are 16 countries on four continents that have joined the treaty.

“It’s particularly relevant to us as one of the world’s most climate-vulnerable nations. It’s a step towards a permanent ban on oil drilling,” Mrs McKinney-Lambert continued. “It’s a very positive step forward and supports the fact that 86 percent of Bahamians support a ban on oil drilling as revealed in a poll last year.

“The Bahamian people realise our climate vulnerability and want to be a leader in building a sustainable future. This is a very important step in that. It’s a good step forward. The Bahamas is wise that we don’t have oil drilling as an industry in the country. It will be a foolish industry to get into given that much of the rest of the world is trying to get out of it.

Bahamian environmental activists, headed by the Our Islands, Our Future group of which Mrs McKinney-Lambert and BREEF are part, have long been pressing for the Government to sign on to this treaty as it would signal that further oil exploration and drilling in this nation’s territorial waters will not be approved.

Challenger Energy Group, the former Bahamas Petroleum Company (BPC), which dug an exploratory well in 2021 some eighty miles west of Andros close to the maritime border with Cuba, said in July this year that it was still waiting on the Government to decide whether to renew its three remaining exploration licences for a further three-year period. The licence terms would include a condition to drill another well.

Eytan Uliel, Challenger’s chief executive, told shareholders in July 2024: “In relation to the company’s licences in The Bahamas, throughout the course of 2023 we continued to pursue a renewal of the licences into a third exploration period.

“In parallel we continued to explore various alternative strategies seeking to monetise those assets. The process has been frustratingly slow, but we expect to make better progress in the coming 12 months.

“In the next 12 months we will be looking to see a result from efforts to realise value from our assets in Trinidad and, as noted, we hope to reach a resolution in relation to our licences in The Bahamas in the same timeframe. But, undoubtedly, the key area of focus and value creation for Challenger Energy going forward will be Uruguay.”

The “alternative strategies” likely refers to plans previously discussed by Mr Uliel to monetise the value of Challenger’s Bahamian licences, and previous exploration activity, through renewals that would require it to drill another well in this nation’s territorial waters within the three-year licence period.

Should commercially viable, extractable quantities of oil be discovered beneath the Bahamian seabed, Challenger - rather than extract it - would instead work with the Government to develop and share proceeds from a scheme involving the issuing of carbon credits whose value would be determined by the oil foregone.

Challenger has always signalled that it would likely not undertake any further exploratory drilling in Bahamian waters without securing joint venture or farm-in partner to take the bulk of the financial, technical and operational risk as it seeks to extract what value it can from its Perseverance One investment.

It remains to be seen whether the “alternative strategies” plan proceeds given the Government’s confirmation that it plans to prioritise the fight against climate change by signing on to the Treaty. Rochelle Newbold, the special advisor on climate change and environmental matters in the Prime Minister’s Office, described joining the treaty as “important” to the Davis administration’s strategy.

“My country is advancing efforts to reduce its dependence on fossil fuels,” she said. “The transition will require infrastructural changes, retraining of workers, financial investments and fit-for-purpose technologies that are accessible and affordable. Therefore, participating in the development of this treaty is important as it will have implications that could impact my country and my people.”

With The Bahamas threatened by both sea level rise and more powerful and frequent hurricanes as a result of climate change, Andurah Daxon, executive director of Waterkeepers Bahamas, praised the decision to sign the Treaty.

“The climate crisis is a clear and present danger to The Bahamas and other small island nations. While joining this treaty is a step in the right direction, we remain resolute in our call for a permanent ban on offshore oil drilling. By prioritising clean energy and protecting our marine ecosystems, we can secure a healthier, more sustainable future for future generations.”

Isaiah Back-Gaal, climate and safe energy campaign manager with Waterkeeper Alliance, added: “The Bahamas has joined a critical global effort to end the destructive cycle of fossil fuel dependence. This courageous step will inspire other nations, particularly those most vulnerable to climate crises. Together, we can ensure a just transition that safeguards communities, biodiversity, and the planet.”

And Mrs McKinney-Lambert added: “By joining this global movement, The Bahamas is declaring that our future lies in sustainable energy and environmental stewardship. This is another step in the right direction, and we are proud to stand with nations around the world to say ‘no more fossil fuels, no more oil drilling’. Our people, our biodiversity, and our economy depend on it.”