Oil hunt in Caribbean heats up; Barbados aims for big investors

Encouraged by Guyana’s runaway economic success since world-class deposits of offshore oil and gas were discovered back in 2015, neighboring Caribbean Community (CARICOM) nations have earnestly started to jack up efforts to attract global supermajors, confident that a major find will exponentially flip their economic fortunes.

Since the Guyana success story, neighboring Suriname has also struck black gold just across the marine border line with Guyana and will likely become the world’s latest producing nation in 2028 when oil and gas are pumped from the seabed.

Since the two largest and most resource-rich nations moved to switch from primary exports like bauxite, rice, and raw gold to petroleum-dominated economies, cabinets across the 15-nation grouping have been taking notes and nations that think they also offshore hydrocarbons are now moving in to capitalize.

The latest is Barbados, the region’s most easterly island and one that neighbors oil and gas-rich Trinidad and Tobago and is, as well, just an hour north of Guyana. Experts reckon that hydrocarbons should also be in the general area if the two neighbors have commercial deposits. The Barbados cabinet now wants the world to know that it too wants to become a world producer in the coming months.

Energy Minister Kerrie Symmonds called a press conference last week to encourage the major players to explore for oil and gas because authorities believe that the island nation is sitting on at least 13 billion barrels of oil and up to 40 trillion cubic feet of natural gas. The cabinet of Prime Minister Mia Mottley says it is making 19 deepwater blocks available for bidding, negotiations, and exploration, aware that only big names like ExxonMobil, Shell, British Petroleum, and a few others usually dare to venture into ultra-deep waters.

“We have done seismic surveys — two-dimensional seismic surveys and three-dimensional seismic surveys — and they would suggest to us that we have the potential of having perhaps as many as 13 or more billion barrels of potential oil and then 40-plus trillion cubic feet of natural gas,” Symmonds told reporters.

Supporting Minister Symmonds, Natural Resources Unit Director James White says it is important that the major companies are attracted to Barbados’ offshore potential.

“We potentially have upwards of 13 billion barrels of oil in place and potentially 40-plus trillion cubic feet of natural gas. While those numbers can be used to assess what the potential value would be to the country, I think it is more important for us to underscore that we are doing this in a measured way. We want to ensure that we work with qualified companies who can help us realize that potential,” White said.

Symmonds says it is important that companies with ultra deepwater abilities head Barbados’ way.

“What we are trying to do is to find companies who will work with us on the basis of a few important criteria. First, they have to be able to do drilling and exploration in ultra-deep water. Secondly, we want to be able to have companies that have the technical experience with regard to the cleaner aspects of exploration and then turn on the things that I’ve just spoken to with regard to methane and decarbonization.”

Companies interested in submitting bids have until early September to do so, indicating their proven track record in exploration and with their technical abilities as well as environmental and safety records. Thereafter, companies which are shortlisted can begin negotiations with authorities about the commencement of an actual work program, the two officials said. Barbados currently produces more than 1,000 barrels per day from onshore or land wells. Officials think the big money will flow from offshore if a major strike is made.

The island’s renewed push to discover and develop offshore oil and gas comes as production in neighboring Guyana is headed to one million barrels daily in the coming month. American supermajor ExxonMobil and its consortium partners have applied for approval to develop their ninth oil field in the coming months while rigs continue appraisal and developmental well work.

With production now in its seventh year in Guyana, neighboring Suriname is preparing to commence actual production in 2028. Daily production from the two can exponentially increase their geopolitical importance in the coming months, experts say.

In Jamaica, meanwhile, there is major excitement following the publication of recent offshore seismic work off the south coast.

United Oil and Gas of the United Kingdom recently confirmed that piston core samples sent to U.S. labs for confirmation came back with positive results, lifting hopes that actual exploration can start in the coming months as the company tries to attract a major partner and raise the necessary cash to fund offshore exploration.

Grenadian authorities are, in the meantime, poring over the limited amount of documentation from previous seismic studies as it will attempt to attract global companies to block neighboring oil and gas-rich Trinidad, where hopes are up as well following Exxon’s interest in ultra-deep blocs between the republic and Guyana.