The Petroleum Corporation of Jamaica (PCJ) says the country stands to gain positively from the production sharing agreement with Tullow Oil Limited, in the exploration for oil and gas off the island’s coast.
PCJ Group general manager, Winston Watson, said there are various models that could have been used for exploration.
“We looked at models all over the world to determine the best model to use to ensure the country benefits. We have chosen the model where we present data about Jamaica, and if you [an exploration company] want to take a chance, then we are willing to share the spoils with you, but you have to put up the money and take the risk,” Watson said.
“The model we have, has the country retaining a percentage. The company that does the investment gets a certain amount. As the production increases over time, the ratio may change where Jamaica will get more, and the company gets less, after they have recovered their cost,” he added.
Model will protect Jamaica
Watson said they have a model in place that will protect Jamaica and will ensure that the country gets a fair return “for using our resources.”
Oil and gas exploration activities being undertaken by the PCJ and Tullow Oil, which began with an agreement in 2014, moved into a higher gear with the initiation of the first-ever 3D seismic survey in the waters off Jamaica’s south coast between the Pedro Banks and Portland Cottage.
Seeking overseas investors
Earlier this month, the PCJ said it was actively seeking overseas investors to tap into the discovery of two independent live oil seeps in different sections of Trelawny in northwest Jamaica.
PCJ manager of Oil and Gas, Brian Richardson, speaking on a television program, said the company is trying to promote the discovery to encourage investors to drill further.
Late last month, the PCJ and London-based CGG GeoConsulting issued a joint statement regarding the discovery.
The statement stated, “This significant find marks the first documented occurrence of ‘live’, or flowing, oil from onshore Jamaica and will be of particular interest to oil explorationists focused on Central America and the Caribbean.
“The oil seeps were found during fieldwork for a recently completed multi-client Robertson Study (Red Book) of the petroleum potential of on-and offshore Jamaica entitled ‘Petroleum Geological Evaluation of Jamaica’ made jointly by CGG GeoConsulting and PCJ.
“Jamaica and its offshore basins remain relatively underexplored. Oil or gas shows have been seen in ten of the eleven exploration wells drilled to date. The discovery of these seeps indicates the presence of working petroleum systems on the island that are generating and expelling liquid hydrocarbons to the surface,” the joint statement noted.
 says the country stands to gain positively from the production sharing agreement with Tullow Oil Limited, in the exploration for oil and gas off the island’s coast.){kind=link}