BNE willing to renegotiate production sharing agreement

Dr. Gilbert Canton

In Wednesday night’s newscast you heard the Chief Executive Officer of Belize Natural Energy Limited, Dr. Gilbert Canton, presenting figures that his company claims represent government’s total royalties collected up to the end of 2009 in oil revenue. Canton said that government got fifty-eight percent and forty-two percent went to BNE. He claimed that BNE’s figures are different from the government’s because its represents projections up to the end of 2009 while government’s was showing only the actual cash it has received.  Petroleum Director, Andre Cho, has told News Five that his department has also raised concerns over the expenditures claimed by BNE in the past years.  But in response to that, Canton said the government’s audit, when it is completed, will show no material difference.  If that doesn’t grab your attention, then perhaps what he told us next will.  Many Belizeans, including Cho, have expressed their views that the Production Sharing Agreement between government and the company should have reflected a higher percentage than it currently does.  Well Canton said BNE would be willing to sit down to renegotiate but there is a catch – for new terms on future oil explorations.

Marion Ali

“The new contracts that are being signed with the other companies for oil drilling elsewhere in our country, according to Andre Cho, the Production Sharing Agreement is nothing less than ten percent for the government.  Your company, BNE, is paying one or one point five percent.  Is there no room for a discussion and renegotiation on this?”

Dr. Gilbert Canton, CEO, Belize Natural Energy

“After the exploration of this particular portion of our exploration license, we will be looking again to see if there are other areas that we can go out and explore.  At that time I’m sure there will be new negotiations for new terms and new contracts.  You have to understand that there was nobody around looking for oil in Belize before BNE came in and they had to make attractive terms for them to come in like in other countries to attract the foreign investment to this country.  Now that we’ve found oil, you’ve upped the game, so now yes, the government can sit back and say we can negotiate better fiscal terms because we have found oil in Belize, therefore, the risk has become a little bit less.   On this particular contract our exploration license ends on January first 2011 and then after that if we want to explore anything after that we would have to look at other areas and renegotiate with government for access to those areas under new terms and conditions.”

Interestingly, the Prime Minister is saying that he will honour the agreement with BNE as it stands.