ncess Casino, has a contract to explore 1 million plus acres of Belize for oil. The license, is mostly offshore, but also some inland exploration. The company is allegedly well connected with local politicians of the ruling United Democratic Party.
The latest discovery was by BNE in January of 2010 when an oil field at Never Delay near Belmopan was declared commercial.
There were hopes that Gallon Jug (in the RSM block), Yalbac (in the West Bay block) and Calla Creek (in the BNE block), would have oil. However, none of the test wells have been successful so far.
In the south of Belize, in Toledo, US Capital has some more seismic planned. They have already done 40 kilometers of seismic in the Sarstoon Temash National Park (STNP). Photo: Drilling for oil in Belize.
The Chinese Petroleum Corporation (OPIC) had visited Belize in 2009 to collect data and take back to Taiwan to review and reprocess. Since then it has officially abandoned all prospecting licenses it held in Belize. This is believed to be connected to the growing public disaffection in Belize over oil drilling.
The 18 companies with petroleum contracts are: BCH International Inc, BelGeo Ltd., Belize Natural Energy, Blue Creek Exploration Ltd., Island Oil Belize Ltd., Miles Tropical Energy Ltd., Northern Spirit Resources Inc., OPIC Resource Corporation (now abandoned), Perenco Limited, PetroBelize Ltd., Princess Petroleum Ltd., Providence Energy Belize Limited, RSM Production Corporation, SOL Oil Belize Ltd., Spartan Petroleum Corporation, US Capital Energy Belize Ltd., West Bay Belize Ltd., and ZMT International Inc.
Companies have up to 8 years to explore for oil, and 25 years to undertake production and pump oil commercially out of the ground. If no oil is found within the eight-year exploration phase, the contract “self-terminates,” meaning it is no longer in effect.
The current United Democratic Party government has made an election promise to establish a Belize Petroleum Trust Fund to benefit all Belizeans which much needed social programs. Some 60% of Belizeans are classified as living in poverty. But more than three years after taking office, the trust fund is yet to be established and all oil revenues – estimated at $120 million – are absorbed by the government for its day to day operations. The government claims that crushing debts has forced it to channel oil revenues into government coffers and is hoping for new oil finds to be able to help meet election promises.
In the wake of the BP Gulf of Mexico Oil spill, a movement has started in Belize to ban offshore drilling. Led by environmental organizations and civil society, the movement has questioned the government’s decision to allow oil drilling in the sensitive Barrier Reef World Heritage Site zone.
Update April 2013: The Supreme Court has declared null and void all offshore oil exploration contracts issued by the government of Belize.
History of Oil Exploration In Belize
Little is officially known about the history of oil exploration in Belize.
A local newspaper recently reproduced an old interview with a Belizean Mr. Compton Fairweather who was involved in the early search for oil.
The esteemed and highly knowledgeable Compton Fairweather, CBE, published at least two articles in June 2006 issues of The Reporter, where he discussed his employment with Gulf Oil Corporation of Pittsburgh, Pennsylvania, in the business of oil exploration in British Honduras. Personally, I only have the second of these articles, and I will quote some of Mr. Compton’s revelations and opinions in that article.
“My duties with Gulf were to assist and be trained by senior geologist, Dr. Giovanni Flores, on Italian geologist employed by the company. We explored every river bank, highway excavation, quarry, cave, sink hole and outcrop we could find between the Sarstoon and the Rio Hondo Rivers, taking samples from the sedimentary rock strata.”
“Yes! We did find oil (called ‘shows’ in the industry) at two locations. The best quality was found at the Galvez ranch between San Ignacio and Benque Viejo, now known as Clarissa Fall