Bahamas Petroleum Company (BPC) continues to follow closely the progress of new petroleum legislation through the Bahamian system, announcing the passage of the Petroleum Bill and the Sovereign Wealth Bill in the Senate to stockholders on the London Stock Exchange (LSE). However, the government has not yet brought regulations connected to the Petroleum Bill to Parliament for debate.
The bills seek to modernize the regulatory framework around oil exploration in The Bahamas, including providing for the creation of a sovereign wealth fund to contain the proceeds of commercial sales.
BPC — an oil and gas exploration company — continues to tout its “significant prospective resource”, referring to the four 100 percent owned offshore licenses in Bahamian waters. The company lauded the passage of the bills, noting that with the governor general’s signature and following gazettal they will pass into law; after which they will be known as the Petroleum Act and the Sovereign Wealth Fund Act.
“The new legislation provides an upgraded and modernized framework for petroleum exploration operations in The Bahamas and are set to guide and govern the next phase of safe and responsible hydrocarbon exploration. The establishment of a sovereign wealth fund is a step forward in ensuring that accrued wealth from exploration success and subsequent development may be optimally invested, managed and conserved for the benefit of this and future generations of Bahamians.
“In addition, establishing this new legislative framework will more readily enable the discharge of the company's obligation to the government of The Bahamas in achieving its goal of drilling the first modern oil exploration well in The Bahamas since those previously completed in the 1970s and 1980s,” BPC said.
BPC’s key four southern licences run until 2Q 2018 when these licences may be renewed a further two times. The key obligation associated with the four southern licences is to commence an initial exploration well by April 2017. The company says it is intent on delivering safe and environmentally responsible exploration.
By K Quincy Parker
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