Maranco’s Oil Show; what does it hold for Belize?

Since discovering oil in Laguna Seca, an area within the northwest corner of the Orange Walk District, Maranco Energy Belize Ltd. has been trying to determine whether the promising show is of commercial quantity.  That breakthrough was reported back in late March.  In the days that followed, the government expressed its enthusiasm about the show and Prime Minister Barrow even went as far as using the potential of the discovery as an incentive during negotiations with the unions.  The result of Maranco’s assessment would determine whether or not a much delayed salary adjustment for teachers and public servants would indeed become a reality.  While members of the Joint Unions Negotiating Team held their collective breaths in anticipation of that outcome, confirmation on the viability, grade and quantity has been slow to come by.  That’s because the company ran into serious difficulties with salt water seeping into the well.  Today, News Five spoke with Dr. Colin Young, C.E.O. in the Ministry of Energy, Science and Technology and Public Utilities, who gave us an update on the status of the evaluation.

Dr. Colin Young, C.E.O., Ministry of Energy, Science & Technology, Public Utilities

“Maranco just this week submitted to the Geology & Petroleum Department an update on the production testing that they were doing on the South Canal, Bank Number One well.  Based on their test they are now recommending to drill another well, called an appraisal well, which is allowed under their current PSA.  They have up to eighteen months in which to complete this appraisal well, of course they would want to do it as fast as they possibly can.  And after that well is completed they will be able to assess whether or not the well is commercial or not.  So, right now they have reported to us that they believe the well has commercial potential.  So, if we look at the evolution, we’ve found a promising oil show, we weren’t sure if it was going to even be potentially commercial.  Now they’ve said that they believe so and now they are drilling this appraisal well to indicate definitively whether or not it’s commercial.”

Isani Cayetano

Colin Young

“You were mentioning earlier that there is a window of up to eighteen months that’s allowed under the current production sharing agreement.  Do you believe that this will be done expeditiously?  I know you mentioned as well that it is in their best interest to do so but have they indicated to you that they are moving on this as quickly as possible?”

Dr. Colin Young

“Yes, it is their interest and intent to do this as fast and as safely as possible for obvious reasons.  Obviously, if there is oil there to be recovered they will have to do an EIA which again takes a period of time for the production, before they could actually start to produce.  So as fast as they can dig the well to get to the depth that they need to assess they’ll do that.”