The Bahamas is in the process of allowing one of the world’s largest exploration corporations to look for oil in the Great Bahama Banks and has already received $900,000 in licensing fees.
Addressing delegates at The PLP’s 47th annual national convention, minister of trade and industry, Leslie Miller, said The Bahamas is negotiating an exploration licence with the Ker-McGee Corporation, one of the world’s largest exploration corporations, with assets of more than $11 billion.
The minister said the company is prepared to spend more than $25 million to search for oil in the waters off the Great Bahama Banks.
He said the government has already received $900,000 in licensing fees.
He said Kerr-McGee corporation has stated that in one particular area “oil is already seeping to the surface”.
The minister said the governemnt will receive more than $4 million during the exploration stage and that it has been agreed that if oil is discovered, The Bahamas will receive 18 per cent of any revenue earned as a reult.
“The discovery of oil has the potential to dramatically transform the economic landscape of our country forever,” Mr. Miller said.
He said government sincerely hopes that the search is successful and that such a discovery would provide the country with a new sector for economic growth and development.
The Kerr-McGee Corpration is based in Oklahoma city with reserves of more than 1.5 billion barrels of oil equivalent at year-end 2001.
The company explores for oil and gas in selected basins around the world and has producing fields in Mexico, The United Kingdom, the North Sea and the South China Sea and onshore in the US, Ecuador, Indonesia and Kazakhstan.
Describing the problem of high gas prices, minister Miller said it is the intention of government to negotiate a contract with Trinidad and Tobago in the near future for better prices on petroleum and petroleum products that would translate to lower gas prices for the Bahamian consumer.
Mr. Miller warned large oil companies that a monitoring system is in place to ensure tha there are no more gas stations in New Providence.
He said some of the major oil dealers are transferring licences to residential areas but this will no longer be permitted.
He said the companies will not be allowed to move from place to place and make it more difficult for small dealers to earn a living.
By Dominic Duncombe, The Tribune
