September start of BHP offshore oil search

Even as Barbados pushes to become a carbon neutral economy in another nine years, Government is still exploring ways to exploit any fossil fuel resources to be found in the island’s waters.

International oil exploration giant BHP announced last weekend, it had signed Production Sharing Contracts (PSC) with the Barbados Government to “conduct deep water exploration in two offshore acreage blocks – Carlisle Block and Bimshire Block”.

In this connection, the multinational resource company reported that the Ministry of Energy and Water Resources will be holding a virtual public consultation on June 15 regarding a seismic survey planned by BHP for the second half of 2021.

According to BHP, which is headquartered in Australia, the survey in search of oil and gas, will involve sending acoustic waves into the rock layers beneath the sea floor and then “recording the time it takes for each wave to echo the characteristics of each returning wave.”

BHP said it planned to use a seismic vessel equipped with seismic equipment and a technical crew. In addition, the company said it would make safety a priority and ensure “appropriate care is taken of the marine life” and reduce contact with sea life such as dolphins, whales, and turtles.

In a statement, the company disclosed: “If these types of animals are detected within a specified zone, the seismic equipment operation will halt until the animal clears the area. Work will not resume for a minimum of 30 minutes after the animal has cleared the 500-metre zone.

The company will have three vessels in use during the month-long survey which starts in September. The seismic survey will be undertaken 70 km or 43 miles from Barbados’ most southern coastline and the company said it should not impact the work of fishermen.

It noted, however: “For the safety of fisherfolk, the Ministry of Energy and BHP will request that fisherfolk observe a 500-metre safety buffer zone from the seismic vessel and equipment.”

Mike Henry, chief executive officer (CEO) of the mineral resource company, which in its 2020 financial year reported it “returned US$6 billion (BDS $12 billion) to shareholders”, said BHP had invested US$7.6 billion in assets and “ensured a strong balance sheet in these volatile times”.

In February last year, Prime Minister Mia Mottley and Trinidad and Tobago Prime Minister Dr Keith Rowley, signed a unitisation agreement that will allow for the exploration of hydrocarbon resources that straddled the maritime boundaries shared by Trinidad and Tobago and Barbados.

At the signing, Rowley remarked: “If we do find hydrocarbons . . . most likely gas, we have now agreed to operate on a unitised basis.

The two countries will work together, designate the operators for such a resource and very quickly we can move towards its exploitation as long as what we have found is commercially viable.”

He added: “Hopefully, this will encourage exploration in the deep water, which is where we are now looking for the bulk of our future resources.

And if we do that, we can accelerate ourselves towards a point where we can monetise at the earliest possible date whatever we may find on this acreage.”

BHP is a major player in Trinidad and Tobago’s oil and gas sector.