The Government of The Bahamas is only days away from signing an agreement with an Oklahoma City-based energy company for the exploration of oil in the country, Trade and Industry Minister Leslie Miller has revealed to the Bahama Journal.
During a time when the economy is facing mounting uncertainties, government officials say they are aggressively pursuing projects like that of the Kerr-Gee Oil and Gas Corporation.
That company reportedly has assets in excess of $11 billion and plans to spend at least $25 million to explore for oil in The Bahamas and has already seen signs that there is some oil beneath the surface of the Great Bahama Bank.
The government is expected to receive in excess of $4 million during the exploration stage of the project. It was also agreed that if oil is discovered the government will receive 18 percent of the revenue.
Minister Miller told the Bahama Journal that such a project would bring huge benefits for Bahamians. He said the discovery of oil has the potential to dramatically transform the economic landscape of the country, forever.
“I think the implications are far reaching, because what is going to happen is that you’re now looking at another plank in the Bahamian economy,” he said. “Instead of tourism, banking and light manufacturing, you’ll now have oil.
“It has transformed all economies where oil has been found anywhere in the globe. It will do likewise for Bahamians. We are hoping with God’s blessing [that] they’ll be successful in their procuring oil in the Bahamas.”
He said the agreement is expected to be ready for completion and signing by Friday or shortly after.
Minister Miller first revealed details of the Kerr McGee project during his party’s national convention last November.
At the time, he said that, “I firmly believe and sincerely hope that the oil companies exploring for oil in our waters will be successful and thereby provide us with a new dynamic sector for economic growth and development.”
ﾠAt the time, he said that, “I firmly believe and sincerely hope that the oil companies exploring for oil in our waters will be successful and thereby provide us with a new dynamic sector for economic growth and development.”
Up to that point, he said that the government has already received $900,000 in licensing fees.
The oil exploration project is one way in which the government hopes to strengthen and diversify the local economy, particularly at a time when the war in Iraq has heightened economic uncertainties.
By Candia Dames, The Bahama Journal
