KINGSTON, Jamaica (JIS) — The Petroleum Corporation of Jamaica (PCJ) says Jamaica stands to gain positively from the Production Sharing Agreement with Tullow Oil Limited, in the exploration for oil and gas off the island’s coast.
Group General Manager for the PCJ, Winston Watson, speaking at a recent JIS ‘Think Tank’, said there are various models that could have been used for exploration.
“We looked at models all over the world to determine the best model to use to ensure that the country benefits. We have chosen the model where we present data about Jamaica, and if you [an exploration company] want to take a chance, then we are willing to share the spoils with you, but you have to put up the money and take the risk,” Mr. Watson said.
“The model we have has the country retaining a percentage, with the company that does the investment, getting a certain amount. As the production increases over time, the ratio may change where Jamaica will get more of it and the company gets less, after they have recovered their cost,” he explained.
Watson said they have a model in place that will protect Jamaica and will ensure that the country gets a fair return “for using our resources”.
Oil and gas exploration activities being undertaken by the PCJ and Tullow Oil, which began with an agreement in 2014, moved into a higher gear with the initiation of the first-ever 3D seismic survey in the waters off Jamaica’s south coast between the Pedro Banks and Portland Cottage earlier this month.