22 Dec 2015 07:00
22 December 2015
Bahamas Petroleum Company plc
("Bahamas Petroleum" or the "Company")
Passing of the Petroleum Bill, associated Regulations and the Sovereign Wealth Fund Bill in Bahamian House of Assembly
Bahamas Petroleum Company, the oil and gas exploration company with a significant prospective resource in licences in The Commonwealth of The Bahamas is pleased to announce that the Petroleum Bill and associated Regulations, as well as a Sovereign Wealth Bill, have been passed by a majority of members of the Bahamian House of Assembly.
The Bills will now be sent to the Bahamian Senate and following successful passage the Governor General will receive the Bills for assent into law; after which they will be known as the Petroleum Act and the Sovereign Wealth Fund Act.
As previously announced in December 2014, May 2015 and December 2015, the Petroleum Bill and associated Regulations are set to guide and govern the next phase of safe and responsible hydrocarbon exploration in The Bahamas, while the Sovereign Wealth Bill will provide the legislative framework to ensure that the accrued wealth from any exploration success would be optimally invested, managed and conserved for the benefit of this and future generations of Bahamians. The various Regulations associated with the Petroleum Bill comprise requirements and standards for operations, health and safety and environmental management that will provide an upgraded and modernised structure where international best practises can be applied.
The Bills were initially tabled for a First Reading in the House of Assembly in December 2014, and in May 2015 were updated to include various amendments arising from the First Reading, as tabled by the Minister of Environment and Housing. Yesterday, following the Second Reading and associated debate the previous week, the House of Assembly moved to a vote in support of the legislation (the Third Reading), such that the Bills and associated Regulations have now been passed by the House of Assembly.
The Company considers that this legislative package reinforces responsible and safe hydrocarbon exploration as an integral part of the National Energy Policy of The Bahamas, whilst at the same time providing the assurance required to attract the considerable investment necessary to develop the potentially huge, and therefore significant economic resources present in Bahamian waters.
Simon Potter, Chief Executive Officer of Bahamas Petroleum Company, said:
"The passing of the Bills and attendant Regulations marks the closing of a lengthy process, and we are delighted to see a majority vote in favour. This represents a clear expression of support for our industry not just by the Government, but by the wider legislative community as well. Today's news should be viewed as positive not only for Bahamas Petroleum Company and its shareholders and stakeholders, but also the country as a whole, as it provides a more stable framework for permitting, technical, environmental and operational activities. These are all key aspects that influence foreign investment. The Government today has shown its commitment to responsible oil and gas exploration in The Bahamas, where a successful outcome could be an economic game-changer for the country given the sheer scale of the prospects. We look forward to the Bills and associated Regulations becoming law in the near future.
Bahamas Petroleum continues to progress its evaluation of the potential of its 100% owned offshore licences, including discussions with potential partners, and looks forward to continuing to work closely with the Government and local communities in generating significant value for all stakeholders. We will update the market further in due course."
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For further information, please contact:
Bahamas Petroleum Company plc Simon Potter, Chief Executive Officer
| Tel: +44 (0) 1624 647 882 |
Strand Hanson Limited - Nomad Rory Murphy / James Spinney
| Tel: +44 (0) 20 7409 3494 |
CAMARCO Billy Clegg / Gordon Poole | Tel: +44 (0) 20 3757 4983 |
Notes to editors:
Bahamas Petroleum Company is an oil and gas exploration company with 100% owned offshore licences exclusively focused on the Commonwealth of The Bahamas. The Company has significant prospective resources, which have been de-risked through both extensive 2D and 3D seismic. The Company's key four southern licences run until 2Q 2018 when these licences may be renewed a further two times. The key obligation associated with the four southern licences is to commence an initial exploration well by April 2017. The Company is intent on delivering safe and environmentally responsible exploration.
www.bpcplc.com