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Government ends oil exploration agreement with foreign firm
2012-09-26 18:00:19 | (0 Comments)
The Petroleum Corporation of Jamaica (PCJ) has revoked the exploration licence granted to Rainville Energy Corp, a subsidiary of Sagres Energy, due to the failure of Rainville to meet its financial obligations under the current agreement between the two companies.
Under the agreement, which dates back to 2006, Rainville should have secured the necessary funding for the second phase of the programme which began in May 2012. Among other things, this phase involved the drilling of an exploratory well by November 2013.
However, to date, the Canadian-based oil and gas company has failed to meet its financial obligations and, after granting pervious extensions, the PCJ has now withdrawn the licence.
“While it is regrettable to have to take this step, the PCJ understands that drilling is a very expensive undertaking and we simply cannot move forward without the requisite financing,” said PCJ Group Managing Director, Dr. Mario Anderson.
The PCJ will continue to market its open blocks and actively pursue investment for exploration and drilling in Jamaica’s onshore and offshore areas.
“We have a comprehensive strategy for pursuing the development of our open acreages. In-keeping with this, we are actively seeking to engage partners and we are targeting a number of Exploration & Production players, including majors and supermajors, with a view to securing an agreement for major investment in the future,” Dr. Anderson added.
Source: The Gleaner/Power 106 News
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