The former CEO of the Bahamas Petroleum Company (BPC) is defending how the Progressive Liberal Party (PLP) first granted an exploratory license in 2007.
Dr. Paul Crevello, who resigned from BPC in August 2011, called the exploration license procedure "arduous", and claimed the hiring of lawyers associated with the PLP was consistent with best practice.
"Yes, we engaged Davis & Co. to represent the company and file our license applications," he said. "But they were the only law firm qualified in the oil and gas sector and had experience with Kerr McGee. So they were and still are the top firm in this field."
Kerr McGee, a major U.S. oil company, was awarded a license by the PLP back in 2003, according to Crevello.
The disclosure by the former executive sheds new light on a hot-button issue that often dominated the political spotlight in the run-up to Perry Christie's victory on Monday. BPC shares on the London Stock Exchange (LSE) surged in yesterday's trading, rising more than 25 percent before settling at 9.55 pence per share, or a 16.89 percent rise.
It was the largest gain since BPC's share price plummeted last month, losing a fourth of its market value after former prime minister Hubert Ingraham declared his administration, if elected, would not pursue oil drilling in The Bahamas.
He later attacked Christie for apparent links with the oil explorer, pointing out Christie has benefited from providing legal advice to Davis & Co., a law firm founded by PLP Deputy Leader Philip Brave Davis.
Crevello insists that BPC's exploratory license, established at the end of the PLP's term in 2007, was an exhaustive process two years in the making.
"The license application and approval process followed established government procedures," he explained, "which was a multi-stage approval process that in the end both major political parties reviewed and approved."
The former CEO said he held multiple meetings with various agencies, and officials at various levels of government. BPC's license applications went through three approval processes, he described. First, it was signed by Leslie Miller, the minster of energy in early 2006. Following revisions, provisional approval was granted in late 2006 by Camile Johnson, the permanent secretary, "with final approval signed into effect in early 2007 by Dr. Marcus Bethel, then the minster of energy and the environment".
The licenses finally passed with Arthur D. Hanna, the governor general at the time, who invested "consider time" in reviewing the agreement, Crevello said.
In fact, the former BPC executive said Hanna and the PLP administration insisted that certain environmental protocols be inserted that were not required under the Petroleum Act.
The licenses were signed into final effect in April 2007.
BPC sought the renewal of these licenses last month. Days before the election, the now outgoing Free National Movement suspended the licenses and returned $300,000 in "rental fees", insisting that further discussion on the issue is required.
The renewal of BPC's licenses until 2015 would mean the company is expected to perform an exploratory well in Bahamian waters in less than a year.
Rick Lowe, vice president of The Nassau Institute, a local think tank, said "everyone is flying by the seats of their pants" on the oil issue.
BPC executives have yet to comment on the cancellation.
In fact, the company's apparent "license renewal" was still posted on their website as of yesterday evening.
Lowe said The Nassau Institute is in support of the tremendous economic potential behind oil drilling in The Bahamas.
"It's just a matter of how the process is managed. It's a national issue that requires more than politics. This issue is bigger than all of us. It should be handled with care," he added.
Crevello couldn't agree more. He said what is important is the benefit to the country and BPC, "and nothing more, leaving politics aside".
Now that the election is past, he said the government owes it to the people to test the potential in the south, near the Cuban border, an area that is rapidly becoming a hotbed for oil explorers.
"Let the government regulations, public forums and the best interests of The Bahamas decide on the potential of the petroleum investment, not politics, rhetoric and ivory tower special interest groups," he said.
According to executives at BPC, Crevello stepped down in August of last year due to his "dislocated" relationship with the firm's board of directors.
Simon Potter, the former CEO of Dart Energy, accepted the CEO position the following month.

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