Jamaica joins the hunt for offshore oil

Recently, the Caribbean Community nation of Suriname announced a $10 billion investment in an offshore oil field that could help the country earn up to $26 billion during its lifespan, soon hauling the Dutch-speaking republic out of dire economic times as is the case now.

French oil giant Total Energies and Apache Corporation of the US are the main players behind the investment, which is slated to produce its first oil in 2028.

The announcement has eased fears and killed apprehensions about a gloomy future for the country of just over 600,000, especially because of its underperforming bauxite, gold, and other sectors.

However, as the elation continues in the country, another regional member state is gearing up to hunt for large offshore oil and gas deposits. United Oil and Gas Plc, an offshoot of Tullow Oil in the UK, is being hounded by Jamaicans to drill an offshore well off the south coast because seismic work in the past has shown strong indications about the presence of hydrocarbons.

Jamaicans are also excited because fishermen have repeatedly reported seeing oil seeps in the area, later confirmed to be linked to offshore oil rather than waste from cruise liners and other large vessels.

The government and ordinary Jamaicans’ lobbying is so intense that the company was forced last month to state that “no commercial oil or gas discovery has been made.”

This is after some news outlets and social media players had suggested that the company was holding back on an announcement about a sizeable commercial find in the Walton-Morant Bay area. It, however, noted that “Jamaica remains our primary driver for growth, with the license offering significant exploration potential. Our focus is now firmly on advancing the project and progressing the ongoing farm-out process to unlock its value, and currently working with several interested parties,” said CEO Brian Larkin.

But from all appearances, Larkin and other industry officials are to blame for exciting Jamaicans about discovering large deposits. He told a Jamaica Promotions Corporation (JAMPRO) event recently that the prospects are “truly life-changing, truly mind-blowing,” noting that a discovery “can double the island’s gross domestic product. The scale is quite substantial,” he pointed out, noting that “we are looking at early commercialization.”

A well will likely be drilled in 2025. United has a 100 % working interest. Authorities also recently granted United a two-year extension on production sharing and other arrangements to keep it at the forefront of efforts to make Jamaica an oil producer.

Of the 15 nations in the CARICOM grouping, Guyana, Trinidad, Suriname, and Barbados are actual producers, with Grenada, the Bahamas, and a few others showing interest in developing their untapped resources. Larkin says the firm will keep its faith in Jamaica.

“We continue working to secure a strategic partner to unlock the immense potential within the license, including recent positive interest that has been shown by several parties. Following securing an extension to the license, our 2024 work program is underway, and we will update the market at the next suitable opportunity,” Larkin added.