There is Oil in Jamaica and the search for the precious
hydrocarbon has not ceased since November 2014 as noted in my blog article
entitled “@TullowOilplc
gets License for Offshore Oil Exploration - 3 Billion Barrels of Oil for
Jamaica to re-discover as Price set to Boom by 2017”.
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Tullow Oil, a Dublin,
Ireland based company with offices in the UK, has completed a underwater survey
of 32,000 square kilometer of the Walton and Morant basins in July 2015 as
reported in the article “Tullow
Oil Commences Drop Core Survey Off Coast Of Jamaica”, published Sunday July
5, 2015 by Camilo Thame, The Jamaica
Gleaner.
Tullow Oil,
currently has a twenty five (25) year Oil Exploration license in partnership
with the GOJ (Government of Jamaica). They’re also currently in Suriname doing
offshore exploration for Oil while being a great corporate citizen as show in
the video below.
The underwater survey or bathymetry, which was conducted
with a submersible vehicle aka mini-submarine, was done in order to determine
points on the seabed where the seabed was not too thick. This so that they
could drill core samples to do chemical assays to determine the hydrocarbon
content lying beneath the ocean floor.
Tullow Oil and
Walton and Morant basins – Only the beginning of Exploration
The 32,000 square kilometer of the Walton and Morant basins
is a very interesting part of Jamaica for Oil Exploration!
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This area is part of the ten (10) of the thirty one (31)
blocks which have been marked for Oil and Gas Exploration by the PCJ (Petroleum
Corporation of Jamaica).
Specifically, Tullow Oil
is allowed to explore blocks 6, 7, 9, 10, 11, 12, 17, 25, 26, 27 and a portion
of Block 1.
The deal struck between the PCJ and Tullow Oil, which they refer to as a PSA
(Production Sharing Agreement), calls for Tullow
Oil to invest some US$60 million in the exploration phase as reported in
the article “Tullow
Jamaica To Sink US$60m Into Oil Exploration”, published Wednesday November
12, 2014, The Jamaica Gleaner.
If they find Oil, Jamaica will get 48% of any production
over 50,000 barrels of Oil per day, plus royalties. Not a bad deal, as more Oil
means more Production Profits plus royalties, a far better deal than we had with
Bauxite mining companies.
So does this mean they'll start drilling for Oil? Not so
fast, as they've only just restarted.
Minister Paulwell
visit Tullow Oil - Jamaica worried that Low Oil prices made Oil Exploration
pointless
Oil Exploration takes quite awhile folks.
Oftentimes, many forget how long it takes to find Oil and
the amount of survey data that Oil exploration companies has to wade through
before you can even start drilling test wells! Take a look at watch the video “Finding The Prize: A story
of Oil exploration and discovery” on Tullow Oil
PLC’s YouTube Page!
During the period Monday May 18th 2015 to Friday
May 22nd 2015, Minister of Science, Technology, Energy and Mining
Phillip Paulwell made a visit to Tullow Oil
at their London and Dublin Offices as reported in the article “Its
on — Tullow Oil reaffirms Oil exploration in Jamaica”, published Friday,
May 29, 2015, The Jamaica Observer.
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Minister Pauwell was accompanied by a delegation that
included Petroleum Corporation of Jamaica’s (PCJ) Chairman, Christopher Cargill
and Group General Manager, Winston Watson as reported in the article “Tullow Oil reaffirms
commitment to Oil & gas exploration in Jamaica”, published 20150528
by Petroleum Corporation of Jamaica, Go-Jamaica.
Minister Paulwell sought to determine if Tullow Oil was still committed to Oil and
Gas Exploration in Jamaica as per the PSA signed in November 2014 as noted in
the article “Government
Issues Oil and Gas Exploration Licence to British Firm”, published November
12, 2014 By Douglas McIntosh, The Jamaica
Information Service.
After all, the price of Oil had dropped, making it pointless
to explore new Oil Well, as the price on the Mercantile Exchange could not
sustain the cost of mining as argued in my blog article
entitled “Lower
Oil Prices Good for Jamaica - How All-Electric Vehicles Sales benefit as
Electricity Prices trend lower”.
So had Tullow Oil
decided to call it quits on Jamaica?
Tullow Oil still
examining bathymetric survey - 25 Years to locate Oil in Jamaica
Tullow Oil, however,
reassured Minister Paulwell and their delegation that they were just as
surprised to see them turn up on such short notice, to quote Tullow’s VP New
Ventures Business, Ian Cloke: “It was a pleasure to meet The Honourable
Minister and the PCJ delegation in our London Office and we look forward to
working closely with The Ministry and the PCJ to complete our agreed work
programme”.
Perhaps they should have watch the video “Finding The Prize: A story
of Oil exploration and discovery” on Tullow Oil
PLC’s YouTube Page before they made the trek all the way to their
offices in the UK and in Dublin!
The Tullow Oil
Executives and Geologists then proceeded to explain to them over the next four
(4) days what they’d learned from the bathymetric survey, which was not much.
After all, 32,000 square miles is a lot of data to process, along with other
data collected during this exploratory phase to determine if Oil deposits below
the seabed are worth exploring:
1. Geological
and geophysical studies
2. Environmental
assessments and the
3. Acquisition
of seismic data
If the analysis of this data bears fruit, then they can
decided were to drill to take core samples for a chemical assay. If the assay
shows that there is potentially a lot of Oil at the locating where the core
sample was taken, then they will make the decision to drill exploratory wells.
However, given the size of the Walton and Morant basins off
the south coast of Jamaica, we might be look at a few years of exploration
before the find an Oil Well.
Under the Petroleum Act, Tullow
Oil has twenty five (25) years to look for Oil. if they exceed that
timeframe, they have to request a renewal to continue exploration. PCJ breaks
down this timeframe into an exploration and Production phases as follows:
1. 5.5
and 7.5 years for exploration phase
2. 17.5
and 19.5 years production phase
Minister Paulwell was thus reassured that the project was
going forward, especially as the timeframe to expect positive results could be
as much as 8 years, quote: “I am
satisfied that the project is still on course and I look forward to the full
determination of Jamaica’s Oil and gas prospectivity”.
So Tullow Oil is
committed for the long Haul as the completion of the Survey indicates. The
price of Oil may change during that time or the Oil Well may be so massive and
easily accessible, making it worth extracting.
In these early days of exploration, anything is possible!
Jamaica needs to find Oil in Jamaica, even if it takes
another twenty five (25) years, as our future would be forever changed by such
a momentous discovery!!
Here’s
the link:
@TullowOilplc
Email:
info@tullowoil.com
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