Publication: Daily Nation
Paper Page:48A
Paper Date: Thu, Oct 21, 1999
Byline: Compiled by Terry Ally

BARBADOS may have struck oil, big time but before it can be exploited, the island must agree on marine boundaries with its neighbours.

Chief Technical Officer in the Energy Division, Leslie Barker, said Continental Oil Company (CONOCO) did seismic soundings of 8 000 kilometres of Barbados' exclusive economic zone in search of reserves of at least 100 million barrels of the "black gold" and gas and got "very good results".

"Regardless of all the seismic sounding you do, the only way that you can prove that you have oil and gas there is when you drill a well and you see oil and gas spewing," he told the Daily Nation.

Those wells, costing about $8 million, could be drilled around 2001 or 2002, but Barker said it was very important for Government to conclude negotiations on marine boundaries before extraction could start. Under the United Nations Law of the Sea Convention, a country is entitled to 200 miles of sea around its coasts. However, in semi-enclosed seas, such as the Caribbean where the islands are not far apart, a principle of a median line must be used, but even then countries must agree to this. Barker said the matter was on the table for the last two years without much action, but active talks were to start next month with Trinidad and Tobago.

The French company ELF took a 35 per cent interest in the CONOCO operation and will provide technical and financial assistance. Together with Shell, they are the leaders in marine oil production. Barbados would make revenue from taxes and royalties on the sale of the oil and there would be considerable employment for Barbadians, said Barker.

"One of the main clauses in the contract is the employment of Barbadians ­ from the professional level right down to the rig hands; they are also bound to train Barbadians."

CONOCOs contract started May 17, 1996. The first two years was reconnaissance, followed by another two years of seismic research which they have asked to be extended by another year. Once oil is found, the contract will be for 30 years.