The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

While the relatively small number of local jobs created during the initial stages of oil exploration “might disappoint” Bahamians, the Bahamas Petroleum Company (BPC) has projected that 300-500 posts would be created if commercial quantities were discovered.

BPC’s Environmental Impact Assessment (EIA), which was released yesterday, disclosed that the specialist nature of its exploratory well drilling activities would have “a limited positive impact” on the Bahamian economy - with the real benefits to be felt down the line if commercial, extractable quantities of oil were confirmed as existing in Bahamian waters.

“Local residents may have high expectations for job creation from oil and gas activities, and the numbers and types of jobs created at this stage (exploration) might disappoint,” the EIA warned.

“Given the complex nature of offshore drilling activities, highly specialised and experienced crews of workers are needed on the rigs to ensure timely, well-communicated and safe completion of drilling activities.”

While acknowledging this, BPC’s exploratory well drilling activities - which will not happen until next year at earliest - will still benefit the Bahamian economy.

“Based on the special skill sets required for the project, Bahamas Petroleum Company may indirectly involve 10 additional Bahamians/ companies in addition to the three currently on staff,” the EIA added.

“In addition to a limited number of permanent jobs for Bahamas Petroleum Company staff, the drilling activities will require the provision of boats, food, accommodation, flights (fixed wing and helicopter), emergency services, construction materials and other goods and services that could create new jobs.

“Local goods and service providers will be selected whenever possible, and could involve 20-50 persons..... However, the project is temporary (no more than five months per well) and limited (one-three wells), so the project is not going to generate many jobs for local residents at this stage due to the need of specialised skilled workers.”

But, looking long-term, the EIA re-emphasised BPC’s oft-repeated mantra, saying: “If commercial reserves are identified, the impact to the local economy could be significant , both in terms of education, job creation (300-500 positions), infrastructure and revenue to the Government.”

The EIA added that BPC’s first proposed exploratory well was being targeted for its Donaldson licence field, located some 80 miles south-west of Andros.

It said each exploratory well sunk would take 100-130 days, with “the entire drilling programme likely completed within three-five months for each well”.

On the economic front, BPC’s planned activities - if they do get the go-ahead from the Bahamian people and government post-referendum - will at least spread activity around.

The EIA discloses that Freeport is in competition with Port Fourchon, in Louisiana, to act as BPC’s shore base during the exploratory drilling.

“If Port Fourchon is the supply base, there will be 1 trip per week per Platform Support Vessel, and if it is Freeport, then 2-3 trips per week per platform Support Vessel,” the EIA added.

And Andros Town Airport, in Congo Town, is being eyed as the airport that will transport workers to the drilling site by helicopter.

“Crew changes will possibly operate through Andros Town. The flight path, via helicopter, will be a direct line between the drill sites and the Andros Town Airport,” the EIA said.

“The flight path will be primarily away from shore, so helicopters involved in the Project will not pass along potentially sensitive receptors.”

Pointing out that $2.8 billion had been invested in oil exploration and production activities in Cuba since 1991, the EIA said not proceeding with oil exploration in the Bahamas would deny both the Government and private sector significant revenue earning opportunities.

And, seeking to allay concerns about the impact an oil spill might have on the environment and Bahamian tourism industry, the EIA said: “The spill modelling results show that even without intervention there is less than a 1 per cent chance of oil reaching shore in the Bahamas, and 0 per cent in most areas.

“The United States, Norway and Brazil are a few examples of countries where fishing and tourism coexist with significant oil and gas exploration and production activities. Oil spill impacts to the local economy could have a major consequence, but such a consequence would have a seldom likelihood.”