The Reggae Boyz Forum: Drilling by 2009.

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#94325 - 05/16/08 04:34 PM

Drilling by 2009.

metro
Member

Registered: 01/30/08
Posts: 994
Loc: USA

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New Terms
Finder / GOP hold 5 year exploration rights from end Jan 2006. A force majeure period resulting from a
period where Finder / GOP were unable to access crucial historic data, adds approx 6 months to this
deadline.
Finder / GOP have rights to explore in 5 offshore blocks each governed by a Production Sharing Agreement
(PSA) with the Petroleum Corporation of Jamaica (PCJ):
• Each block has a Minimum Exploration Work Program (MWEP) agreed
• Excellent cost recovery terms
• A royalty of 12.5 % of the value of the petroleum to be paid to the State
• Production sharing regime is a sliding rate based on
1. Production volumes (10,000 – 50,000 bopd)
2. Base Gvt share of 30% (maximum 60%)
3. Water depth (0 – 800 m)
• Income Tax Concession Period of 15 years
• Similar production terms for gas and oil
Oil Shows and Seeps
The first petroleum exploration well drilled in Jamaica was Negril Spots-1 in 1955. It had shows and
indications of residual oil and gas. An additional 10 wells have been drilled, and all but one well had
indications of hydrocarbons. In addition, 3 gas seeps are active onshore Jamaica, 2 major offshore slicks
over the Tertiary graben boundary fault and 2 oil seeps have been identified offshore using Satellite
Synthetic Aperture Radar (SAR) data. All three shallow core holes drilled onshore Jamaica by the PCJ had
oil shows. These shows and seeps provide a strong indication of a working petroleum system.
Jamaican Energy Needs
Jamaica has a growing demand for energy, and is seeking alternatives to the import of oil for power
generation. Power consumption is around 6.5 billion kWh annually, which, along with transport needs
requires the import of over 70,000 bopd.
Recently the Petroleum Corporation of Jamaica (PCJ) announced nine companies have submitted prequalification
documents to provide a floating LNG terminal.
The reception, storage and re-gasification terminal is planned for the Port Esquivel area on Jamaica's
southern coast (located directly north-east of the Finder/GOP permits).
Initial LNG throughput is expected to be 1.2 Mt/y, which would be split between Jamaica's alumina industry
and the power generation sector. There is current market potential of 2.5 Mt/y (125 bcf/year)
The terminal is part of the government's energy diversification strategy that aims to introduce natural gas as
an alternative to oil. The aim is to receive first gas in 2009

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