A top industry insider says it is unlikely that Bahamas Petroleum Company (BPC) will initially attract “big boys” as partners for an exploratory drill.
Jorge Pinon, research fellow at the Center for International Energy and Environmental Policy at the University of Texas, felt the best case scenario would be to hire a smaller operator, strike oil and then entice another partner of the league of Exxon or British Petroleum (BP).
The former president of Amoco Oil in Mexico and Latin America told Guardian Business that Jamaica, for example, had limited success bringing in a larger farm-in partner.
“Small guys are the ones looking to take the risk,” he added. “Don’t expect the Exxons or BPs to go to Bahamas. It’s not big enough. They go after Angola and Brazil.”
The comments from Pinon come as Leslie Miller, the chairman of the Bahamas Electricity Corporation, questioned the international strength and clout of BPC. The company, however, is populated with well-known oil executives with decades of experience.
However, Pinon said “it’s not easy” for smaller and
unproven oil provinces to fetch large operators. After investing tens of millions in seismic testing, BPC is now in the process of courting farm-in partners and looking to drill an exploratory well following a nationwide referendum on the issue.
“If nobody else is willing to put down $20 million or so to dig a hole, you have to bring in a smaller operator. When you have a find, you can get the larger guys to develop these fields,” Pinon told Guardian Business.
