Publication: Daily Nation
Paper Section And Page: 1
Paper Date: Thu, Nov 8, 2001
Byline:
CONOCO, the third largest United States-based oil company, will begin exploratory drilling about 70 miles off the St Philip coast by the middle of this month. This announcement was made yesterday by Minister of Economic Development, Reginald Farley, at a joint Press conference with representatives of Houston, Texas company.
Conoco, which operates in 40 countries, was awarded a licence in May 1996 by Government to explore hydrocarbons in offshore waters and has collected more than 11 000 kilometres of seismic data.
"I'm pleased to report that Conoco is satisfied that, based on the seismic data, there is sufficient reason for them to move to the next stage of exploration, that is, the drilling of test wells in the sea off Barbados," Farley said.
Conoco's branch manager for Barbados, James Fielder, said this well would run his company's investment in Barbados for the five-year period to around US$50 million. While Conoco, which at the beginning of last month had a market capitalisation of US$16.4 billion, is solely responsible for the cost of the drilling, Farley expects Barbados will benefit by an estimated US$300 million per annum from 2007, if drilling is successful. The 220-metre long rig, Deepwater Pathfinder, is expected to be anchored off the south east coast to complete drilling of the well in more than 2 000 metres of water. Conoco estimates this round of drilling to be completed in 41 days.
Conoco and Farley assured Barbadians the drilling would pose no threat to the beach, coastal waters, fishing or navigation. The Christ Church East MP said permission to go to the next stage was granted after consultation with fisherfolk organisations, the National Trust, the National Conservation Unit and other non-governmental organisations. Fielder could not give a dollar figure on the amount allotted to environmental protection, but said some of the US$250 million spent on the drill ship was to ensure it was environmentally secure. Also "several hundred thousands" was spent here on contractors, studies and lining up procedures for the offshore drilling. Fielder said he had recorded no accidents in 20 years in the business and certainly not since Conoco has been in Barbados.