Lulled into a false sense of security

As of Thursday, May 28, 2020

EDITOR, The Tribune.

The news that the Bahamas Petroleum Company has not paid its licensing bills for an undisclosed number of years did not come as a shock. It is exactly what I expected from them. What did surprise me was that the government accepted a mere $900,000 to cancel the bill, which was surely in the millions of dollars. And what was really astonishing is that BPC admitted that it used money from Bahamian investors to pay it!

As far as we know then, this foreign company itself has not invested anything, just ducked their bills and licence obligations for several years and then got the Bahamian public to to bail them out, shortchanging our Public Treasury in the process? Boy, if true, these fellas are slick.

Under any other circumstances, the Bahamian public would be howling for the licenses to be cancelled and for these people to be sent packing back to the UK, but we have been blinded by the idea that oil is the get-rich-quick scheme we have been waiting for and that we will all suddenly become filthy rich.

Well, as far as I’m concerned, the only thing filthy here is the raw deal that they are trying to ram down our throats – that, and our oceans and beaches when this company has no more use for us.

We need to wake up. None of the profits from BPC’s oil drilling will stay in the Bahamas. Just like with tourism and offshore banking, the foreign owners will export all of the money to their homeland and leave us with peanuts.

Except in this case it’s even worse, because at least tourism and banking create jobs. Whereas, how many Bahamians are qualified to drill an offshore well, or have experience working on an oil rig, or are well versed in the relevant health and safety protocols, or have expertise in the geochemical processes involved? No, sir, these jobs are all going to foreigners.

Should we simply trust that BPC cares about Bahamians and will make sure there is something in it for us? Well let’s look at their track record. First, they fail to pay their bills to the Bahamas for years and failed to disclose how much they actually owed. Then, they short change the Public Treasury and get Bahamians to pay a reduced sum for them. And now, they have announced that their new plan is to start drilling in October, even their own Environmental Impact Assessment pledges not to drill during Hurricane Season because of the very high risks involved (risks for our environment and economy). This is not the behaviour of a good partner.

I believe Bahamians have been duped and lulled into a false sense of security on this issue. It is time to wake up. There is nothing in BPC’s plan for us and we have everything to lose. We need to cancel those licences before it’s too late.

RICARDO JOHNSON

Nassau,

May 25, 2020.

joeblow 3 years, 11 months ago

I have come to the conclusion that Bahamian governments like being buggered!

NickB. 3 years, 11 months ago

A few points: 1. The licence agreements have been extended due to circumstances outside of BPC's control. Negotiations were needed to agree on how much was owed due to the extensions. Once BPC was told how much was owed they paid without delay. 2. Bahamian public did not bail them out. Bahamians invested in BPC and therefore own part of the company. Part of this money raised from Bahamian shareholders was used to pay the licence fees. The money did not come from the 'Public Treasury' as you put it. 3. Regarding your point 'None of the profits from BPC's oil drilling will stay in the country'. Please read the licence agreement whereby the Bahamas Government will receive a large portion of the profits through royalties and taxes. As this has the potential to be a substantial amount, ie. USD billions per annum, I think it is exceptionally beneficial to the Bahamian people. 4. As to your point whether you should trust BPC to care about Bahamians and make sure something is in it for the people. Please see points 2 and 3 above. Actually no trust is needed as it is contractual as per the Environmental Policy and Licence Agreements. The Government of the Bahamas has done a very good job of ensuring Bahamians will benefit. 5. BPC have never said they will drill in October. They have specifically said they will drill after hurricane season between Dec 2020 and Feb 2021.

Not sure this article could be more factually incorrect.

tribanon 3 years, 9 months ago

You Sir are either one of the many duped investors in BPC or one of the shysters and fraudsters profiteering from the duping of investors.

laallee 3 years, 11 months ago

Ricardo. Please do a little more research and your missive may be worth reading. Let me put you straight on a few points.

Licence fees- BPC were prevented by the government from drilling for a few years hence less fees to pay.

Investment by BPC- million $$$ on surveys, reports and pre drill expenses etc The private investor is responsible for 90% of that.

Profits from BPC- Have you bothered to look at the royalty fees the Govermnent have in place and read the details of the Sovereign Wealth Act?

Drilling in October- Try December 15th onwards.

All this is available to read on BPCs website.

Such a shame you choose to be - in your words "duped" by your own false information. Take care and have a good weekend.

NickB. 3 years, 11 months ago

A few points: 1. The licence agreements have been extended due to circumstances outside of BPC's control. Negotiations were needed to agree on how much was owed due to the extensions. Once BPC was told how much was owed they paid without delay. 2. The Bahamian public did not bail BPC out. BPC have raised new investment from both Bahamian and International investors this year. Part of this money raised was used to pay the licence fees, part goes towards operating/drill costs. The money did not come from the 'Public Treasury' as you put it. In return for their money Bahamian investors, just like international investors, were given shares in the company. They now own part of the company. You forgot to mention that part. 3. Regarding your point 'None of the profits from BPC's oil drilling will stay in the country'. Please read the licence agreement whereby the Bahamas Government will receive a large portion of the profits through royalties and taxes. As this has the potential to be a substantial amount, ie. USD billions per annum, I think it is exceptionally beneficial to the Bahamian people. 4. As to your point whether you should trust BPC to care about Bahamians and make sure something is in it for the people. Please see points 2 and 3 above. Actually no trust is needed as it is contractual as per the Environmental Policy and Licence Agreements. The Government of the Bahamas has done a very good job of ensuring Bahamians will benefit. 5. BPC have never said they will drill in October. They have specifically said they will drill after hurricane season between Dec 2020 and Feb 2021.

Not sure Ricardo's article could be more factually incorrect.

banker 3 years, 10 months ago

You do know that this is a penny stock play and the company does not have any intention of drilling right? They already have made millions with the stock and could shut down tomorrow. These junior resource penny stock plays have been happening for 70 years in other resource rich companies like Canada, and less than 0.001 percent of them come to fruition, but the organisers of these plays make millions. There is nothing new under the sun, except the duplicity of the promoters and the gullibility o the public.

tribanon 3 years, 9 months ago

Sleazy James Smith of CFAL is deputy chairman of BPC and for years now has aided and abetted the promoters in issuing shares of BPC to gullible investors. Unscrupulous Smith peddles influence for BPC with our elected government officials and regulators for which he pockets his annual director's fee and other benefits paid to him in the form of cash or shares of BPC.

Voltaire 3 years, 11 months ago

@NickB. Have you seen the license agreement? Where does it say that? Can you show us? I for one have never seen anything from this company indicating a commitment to share major royalties with The Bahamas or pay 'major' taxes. It would be helpful if you could point to the facts.

NickB. 3 years, 11 months ago

It is all on BPC website here https://www.bpcplc.com/our-operations...">https://www.bpcplc.com/our-operations... and also on Bahamas Government website just google Bahamas Petroleum Act then look at Royalties. It is pretty simple to do the smallest bit of research.

Also if you don't think any taxes will be generated from billions of $ flowing through the Bahamas then I can't help you. This will be game changing for Bahamas if oil found.

Voltaire 3 years, 11 months ago

@laallee - You must work for BPC. I am a Bahamian. i don't care how much their pre drill expenses cost them. That is their problem. And they were prevented by the government for drilling for years to protect the Bahamian public. Oil drilling is dangerous and proper regulations need to be in place before it can even be considered. For the good of the Bahamas. BPC is supposed to be headed by industry veterans, they know the game. It might takes to get approval after you get the license. Too bad, that is what you signed up for. In the meantime, they agreed to pay the Bahamas a set amount of $$$ per year of the license and they need to pay it in full. And like I said to NickB - please point us to these "royalty fees" in place and the section of the Sovereign Wealth Act to which you refer. I fear the Bahamas is going to get swung in this deal while you all go on playing apologist.

Voltaire 3 years, 11 months ago

One more thing: Since the two of you seem to have so much inside knowledge and affection for BPC, please enlighten us - how much did they actually owe in the first place before this settlement was 'negotiated'?

NickB. 3 years, 11 months ago

Because of the delays (caused by Bahamas Government) and extensions to the licences nobody knew how much was owed. That's why the Bahamas Government and BPC sat down and agreed a figure. It was then paid.

The delays were for good reason I might add such as the Government and BPC carrying out Environmental Assessments and updating the Petroleum Act to ensure Bahamians benefited from an oil find. All this info is available to the public, there is nothing hidden, no ill will, no inside knowledge..

Voltaire 3 years, 11 months ago

What do you mean nobody knows how much was owed? You have held the licenses for a certain number of years, and presumably there was an annual rate agreed at the start. Multiply one by the other and that is how much you pay. Delays caused by whomever is part of the game my friend, if you don't like it, play a different one. We have no guarantee that BPC will find anything, meanwhile we know that ALL offshore drilling creates pollution. The only guarantee we had of any benefit at all was the licensing fees, and you guys are already quibbling about the price? Cmon.

Porcupine 3 years, 11 months ago

For the love of money, and money alone! These apologists for the crime of drilling for oil in this country are seriously challenged. Being clever with the English language certainly doesn't give one a pass on the lack of a cohesive argument. There are few, and growing even fewer, honest caring scientists in the world who would advocate the idea that drilling for oil today, in 2020 is a good idea. There must be something seriously wrong with your moral compass if you think that drilling for oil, and perpetuating the global and local assaults on life on earth is good for life in planet earth.
The living earth is collapsing. There is nobody on this planet who can convince me otherwise. It is not a matter of opinion. It is a fact which I can defend and debate with anyone. I am not being egotistical or flippant. This is what I have spent my life studying. The earth's life support system, upon which we depend, is collapsing. The fossil fuel industry has captured our political and economic systems the world over. This is supported by the US military. They defend the rights of the US to have unfettered access to all oil producing countries. This is official policy, not a conspiracy theory. Drilling for oil is about money and power alone. The oil industry has known about the effects of burning fossil fuels on our climate for well over 50 years, but decided to launch a disinformation campaign, just like the tobacco companies did with cigarettes. Oil drilling in The Bahamas in 2020 is a foolhardy, no stupid proposition. Women go into prostitution for exactly the same reasons being suggested by BPC and our political leaders today. Economic desperation. It is sad to be in a place where the simple and sordid love of money can put our entire nation, and the global community at such risk. The facts are more than clear. Those who argue for drilling for oil in The Bahamas are uneducated and ignorant, uncaring and cold-hearted, and a serious risk for life on this planet. I am tired of being politcly correct. If you support drilling for oil in The Bahamas, you are an ignorant fool.

Voltaire 3 years, 11 months ago

They sound like trolls for BPC to me.

laallee 3 years, 11 months ago

Sovereign Wealth Act- https://eh.gov.bs/wp-content/uploads/...">https://eh.gov.bs/wp-content/uploads/...

Petroleum Act- https://eh.gov.bs/wp-content/uploads/...">https://eh.gov.bs/wp-content/uploads/...

Thank you and keep safe.

Voltaire 3 years, 11 months ago

You know full well that the government will claim Dorian and Covid and place any revenues from drilling directly into the Consolidated Fund. It is right there in section 15, natural disasters etc.

Voltaire 3 years, 11 months ago

Thank you NickB, checked out the Act and all it does is back up what this letter writer said. Provided BPC finds oil before ruining the environment, we will get the bare bones 12.5% for risking our entire livelihood and identity. This is not some scrub-land desert in middle America. It is one of the most beautiful and sensitive and rare marine environments in the world. And yet we are getting the standard rate. The old standard rate at that: "Traditionally 12.5%, but more recently around 18% – 25%. The percentage varies upon how well the landowner negotiated and how expensive the oil company expects the extraction of oil and gas to be." - https://blackbearddata.com/royalty-bu...">https://blackbearddata.com/royalty-bu...

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