Kerr-McGee Oil & Gas Corporation, which secured an oil exploration contract from the Bahamas government last year, is actively exploring the ocean floor for likely locations of oil deposits, according to a company spokesperson.
Debbie Schramm, who heads corporation communication at Kerr-McGee, provided an update to the Bahama Journal Monday on the work being conducted by the company.
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 would be given 18 percent of the revenue.
The contract provides for seismic testing, which Ms. Schramm said is now taking place.
Seismic testing is a process which environmentalists argue has potentially damaging effects on marine biological diversity.
But Ms. Schramm has indicated that there is no real need for concern.
She also said, “We are continuing to evaluate all that and then we will be setting our forward plan for what we are going to do in The Bahamas.”
Seismic testing involves explosive shock waves that are directed at the seabed, using high-pressure air guns. It gives oil companies information about rock formations and in turn provides information on where oil deposits are likely to be.
But there are concerns that the process could harm fish stocks and marine mammals, particularly following international reports that Kerr-McGee’s Las Vegas rocket fuel plant has a legacy of contamination by a toxic chemical.
In addition to the potential dangers of seismic testing, there is the added concern that to date, there has still been no town meetings on the project, whose entire impact has yet to be fully determined.
“At this time, we continue to stay in touch with the government, working closely with them to determine what is needed to ensure that our operations are all carried out in a responsible manner,” Ms. Schramm said.
Spanning a 12-year period, the deal the company has with the government also provides for a 30-year (oil) production with the option to extend the contract at that point.
Under the terms and agreement, Kerr-McGee would be allowed to drill in 6.5 million acres in water depths ranging from 650ft to more than 7,000ft, making it the first venture that would explore in deep waters in The Bahamas.
Macushla N. Pinder, The Bahama Journal
