John Myers Jr, Business Reporter

Wright

Jamaica's search for oil is likely to extend beyond the Pedro Cays into the waters known as the Joint Regime Area (JRA) shared with Colombia as both countries begin negotiations for the sharing of resources and information on oil and gas exploration.

The JRA was established out of a Maritime Delimitation Treaty signed between both countries on November 12, 1993.

It is a shallow area located south of the Pedro Cays and consists of the Seranialla and Baha Nueva Banks.

Last week, the Jamaica and Colombia governments signed a joint statement authorising the start of discussions on how the two will collaborate in the search for oil and gas deposits within this defined area.

On Wednesday, Dr Raymond Wright, special projects manager of the Petroleum Corporation of Jamaica (PCJ), told the Financial Gleaner that a new company which the PCJ was likely to offer a contract to carry out a multi-client survey on eight of the 20 designated search blocks to determine their feasibility for oil and gas explorations would most likely be given the job to also undertake a similar survey of the JRA.

Survey necessary

Wright said the survey of these eight blocks was necessary because there was limited or no information available on the prospects of finding oil and or natural gas.

For that reason, no licences were being offered to explore in these areas, he said.

The contract with the new partner that PCJ is contracting is likely to be signed in April or May, but Wright said he would not divulge the name until the negotiations were finalised and approved by Cabinet.

The PCJ will use the results of the survey, on the condition that they are positive, as a pitch to oil companies to scout Jamaica's offshore areas.

Jamaica last year spent about US$2.2 billion importing oil.

The central bank is projecting that another US$500 million will be added to the bill this year given the continued upward trend in world prices which only yesterday flirted with US$106 per barrel.

Three companies have already been issued with licences to explore for oil off Jamaica's south coast, namely: the Finder/Gippsland Joint Venture, Australia; Rainville Energy, Canada; and more recently, the Proteam Group Limited of Hong Kong.

Scouting for a partner

The Finder/Gippsland Joint Venture, which was awarded five of the 20 designated exploration blocks, has already completed its seismic surveys and is currently scouting for a partner to commence drilling by the first half of 2009.

Finder/Gippsland is expected to commence drilling in the two blocks closest to the mainland located off the coasts of St Elizabeth and Westmoreland.

Proteam is to outline its plans to the PCJ next month to conduct seismic surveys in the four blocks they have been awarded.

Wright said Rainville presented the results of a bathymetric survey of the three blocks they have been awarded last week Friday at a meeting of the technical advisory committee in Montego Bay.

"Because they will be operating in shallow waters, they have had to do some bathymetric work to see the depth of the water more precisely in these areas and to understand better the interaction they will have with the fishing community because it is in these shallow waters on the northern side of the Pedro Banks that the fish traps are in abundance," Wright explained.

"What they will now do is a two-dimensional seismic survey."

Rainville is seeking a seismic vessel for the job, and is expected to commence the surveys in the second half of this year.

john.myers@gleanerjm.com