Jamaica could soon hear its oil and gas prospects

 

By Nakinskie Robinson 

 

 

As conflict in the middle east rattles global oil supplies and fuels energy insecurity worldwide, Jamaica's is set to receive critical data on its oil and gas prospects in the next two to three months. 

 

During a post Cabinet press briefing on Wednesday, Energy Minister Daryl Vaz revealed that the oil and gas exploration by United Oil & Gas was completed on February 28.

 

The survey lasted 34 days. 

 

Minister Vaz said there were no reports of environmental or safety incidents or conflict with fisherfolk throughout the mission. 

 

"During the mission, 1,189 line kilometres of multi-beam echosounder data was collected to map the sea floor. Heat flow probe data was gathered to analyse temperature gradients. Most importantly, piston cores were taken from 42 locations across the Walton and Morant Basins for direct testings of oil and gas presence. These cores have now been offloaded and are en route to a lab in the United States for detailed analysis. Results are expected within two to three months. This is not simply a technical exercise, it is a meaningful step towards understanding the geological potential of offshore Jamaica," noted the minister.  

 

He said the government is cautious as its explores Jamaica's petroleum potential. 

 

"As we are await the lab results, the government remains committed to a responsible science-led approach. Exploration does not mean exploitation without safeguards. It seems it means gathering facts, analysing data and making informed decisions in the best interests of Jamaica. So, once again, I caution everybody to be patient and calm and to listen to the government on this very sensitive matter. Three months, two to three months before we hear anything positive or negative, and therefore we don't expect to have anything, rumours circulating about discovery of oil or gas," he stressed.

 

Under the Surface Geochemical Exploration Programme, an early-stage intrusive exploration initiative, UOG explored the 22,400 kilometre square block in the Walton-Morant Licence area which runs offshore from eastern to western Jamaica. 

 

The licence area is estimated to hold over 7 billion barrels of oil.

 

The ongoing conflict between the US and Iran has caused instability in the energy sector after one of the world's leading oil exporters, QatarEnergy halted production following military attacks on its facilities.

 

Natural gas prices shot up by nearly 50 per cent within hours.

 

Jamaica imports billions of US dollars of oil and natural gas annually. 

 

Minister Vaz said Petrojam will continue to assess developments in the Middle East and how US-Iran tensions will affect the price of finished petroleum products locally.  

 

"It is important to understand that crude oil and finished petroleum products are traded in separate markets and movement in crude oil prices do not automatically or proportionally translate into local pump prices. The pricing mechanism used by Petrojam also helps mitigate full exposure to sudden price shocks. The extent of any local impact will depend on how sustained these international price movements are. Petrojam continues to monitor closely changes in the US Gulf Coast reference for finished petroleum products which serve as the primary pricing benchmark for the region and determines Petrojam's ex-refinery prices," the minister indicated.