PCJ Receiving Round 2 Offshore, Onshore Exploration Proposals
State-run Petroleum Corporation of Jamaica (PCJ) will receive proposals through May 1 to explore offshore and onshore acreage in a second oil and gas licensing round, PCJ special projects director Raymond Wright told BNamericas.
Four onshore and eight offshore blocks are being offered, said Wright, adding that the round will not entail a formal bidding process but only the submission of informal bids.
"There was a lot interest in the new acreage," according to the official, who last week participated in a presentation in Houston, Texas, to outline second round details. Company names were not disclosed.
The onshore blocks are Negril (2,856 sq km), Windsor (2,446 sq km), Portland (4,309 sq km) and Santa Cruz (1,416 sq km). The offshore areas range from 1,924-26,780 sq km for a total of 104,262 sq km.
Contracts would entail five-year exploration and 20-year production periods, with an optional 10-year production extension. The maximum income tax rate would be 33.3%, although there could be an exemption for a number of years.
Excess gas could go to create methanol, fertilizer, urea or LNG, among other products.
According to the government, attractive factors include low entry costs, well locations in shallow-to-moderate water depths, a relinquishment option at the end of each concession period and proximity to the Gulf of Mexico and other US markets.
Australian company Finder Exploration and Canada's Rainville Energy in 2005 picked up five and three offshore Jamaican blocks respectively that in total cover 23,193 sq km.
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