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Big Spanish, Brazilian firms show interest in oil searchBy Camilo Thame Business Observer writer
Wednesday, April 11, 2007
Major players in the oil and gas industry from Spain and Brazil are looking to buy into the oil exploration venture being undertaken by Australian firm Finder Pty, according to a source high up in the energy ministry.
Silva... Spanish companies are looking into what has been done so far. The exploration, although still in its early stages, is already pointing to a "large hydrocarbon system off the coast of Jamaica" from gathered seismic and magnetic data, the source told the Business Observer yesterday.Finder, which partnered with another Australian firm, Gippsland, in mid-2006 when it commenced aerial magnetic and gravity surveys to pinpoint commercial deposits of oil and gas, was the first firm to take a stab at finding the precious commodity in the Jamaican Government's most recent attempt to offset its massive fuel import bill - US$1.6 billion last year.
Now, according to the ministry source, the joint venture - Finder/Gippsland - is sharing data with large firms that have the means, and perhaps more importantly, the clout to secure offshore drilling equipment that might see oil explorers, as early as next year, sinking the first oil or gas well in Jamaican waters since the search began more than 50 years ago.
"Finder is sharing data with (potential) investors right now," said an official in the energy ministry. "Investors from Spain and Brazil have made expressed interest."
Spanish Ambassador to Jamaica, Jesus Silva, told the Business Observer that "Spanish companies are looking into what has been done so far", but he noted that it was too early to say how they would proceed.
In the meantime, both Finder/Gippsland and the Jamaican Government are seeking to press ahead into the next phase of the project, given that early readings are pointing to the possibility of commercially viable quantities of oil or gas.
"Finder and the Government are both anxious at getting investors to farm into the project," said the ministry official.
'Farming in', as it is called, refers to when a company drills wells or performs other activities on another company's lease, in this case Finder, to earn an interest.
Exploration in countries that do not show evidence of the presence of hydrocarbons, as with the case of Jamaica where previous attempts have turned up no positive results, tend to attract smaller firms which take a calculated risk. However, that risk can be written off against future taxes, but draws larger industry players when signs emerge that the exploration will be successful.
"The fact that the data (from aerial magnetic surveys and marine seismic surveys) are attracting large firms, suggest that the readings are positive enough for future investment," said an energy expert.
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