National oil company seeking new territories

Barbados is one of the few Caribbean islands with an oil and gas industry of its own.

The State-owned Barbados National Oil Company Ltd (BNOCL) is taking the lead in maximizing the potential of the country's hydrocarbon resources, thereby reducing the country's import fuel bill.

Ronald Hewitt, general manager of Barbados National Oil Company Ltd

General Manager of BNOCL Ronald Hewitt explains, "Basically we have been producing just about 1,200 barrels of oil per day in a country that consumes about 8,500 barrels a day. Our objective is to get closer to self-sufficiency in fossil fuels, but of course we recognize that there are certain things that have to be done, which will take time to allow us to do that."

As a first step in ramping up production from its existing onshore operations, BNOCL is seeking partners who possess technologies and expertise to tackle the difficult geological challenges posed by oil-producing sand beds that are small, discrete, steeply dipping, highly faulted and embedded with shell.

"We have been seeking out technologies and working with companies that for instance have competitive advantages in the area of data capture, people who are working with steam injection, and people who can help us identify and map our oil fields. Those are the kind of technologies we are looking for," Hewitt says.

Offshore, the potential for oil exploration is believed to be significant, as the Caribbean Plate, known to hold sizeable reserves of oil, is pushing into a large area that was recently allocated to Barbados in a United Nations tribunal ruling.

"We are very excited, because we believe that the plate does have potential for Barbados, significantly better than we have onshore. And the interest that has been displayed by multinational companies and major independent and even national international oil companies is very substantial," Hewitt says.

A consultancy firm has been recruited to divide the offshore acreage into blocks for a competitive bidding process.

Hewitt anticipates a road show across the globe, but cautions that "Barbados is being very careful. In looking for a company, we are not just looking for any company. We are looking for one that puts Barbados' offshore potential high on its profile, a company for a long-term relationship. We are not looking for companies that come, drill and go. We are looking for a company that has a proven track record. We are looking for a company that has a clean environmental record and treats the environment as a priority."

(Shanghai Start 02/01/2007 page4)