Friday, October 2, 2020

BPC says Bahamas could see $5 billion if it strikes oil

 Bahamas Petroleum Company drilling rig.

Chester Robards
The Nassau Guardian

The Bahamas stands to accrue revenues of $5 billion or more should Bahamas Petroleum Company (BPC) strike oil at its Perseverance #1 drill site, the company said.

“In a successful development scenario of approximately 0.7 billion barrels (i.e. of the P50 resource level at Perseverance #1 only), and assuming a real US$40 oil price, the project remains robustly economic with an NPV10 exceeding US$2.5 billion,” BPC said in a statement.

“In such a scenario, even at these relatively modest oil prices, an aggregate revenue stream of over US$5 billion would flow to the government of The Bahamas in royalty income and other payments over the life of the project.”

BPC is confident that its first site, Perseverance #1, could hold between 0.7 billion and 1.4 billion barrels of oil.  Read more >>