Government signs contract for gas and oil exploration
The government has signed a Production Sharing Agreement (PSA) with Tullow Jamaica Limited for oil and gas exploration in the Walton and Morant Basins.
According to the Petroleum Corporation of Jamaica (PCJ) the PSA, which became effective on November 1, allows Tullow to begin exploratory work on ten of Jamaica’s 31 blocks and a segment of another.
The blocks cover approximately 32,000 square kilometers.
Tullow will have a 100 per cent operating interest.
In announcing the agreement earlier this morning, Mining Minister, Phillip Paulwell said the government has been working hard to attract international investment for oil and gas exploration.
He says the government stands to benefit significantly if oil and gas is found.
The PCJ says the exploration phases of the PSA can last up to seven-and-a-half years and if any wells contain oil and gas quantities which allow for commercial level production, then the parties will move into the production phase of the contract.
This can last up to 19-and-a-half years.
As the government entity with responsibility for contract implementation, the PCJ will oversee the process to ensure that the contract deliverables are met.
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