Briceño: G.O.B. wants 50% of gross oil revenues
Latest reports out of Spanish Lookout are that Belize Natural Energy is recoding production of up to approximately two thousand seven hundred barrels a day from a total of four wells. Technicians have already begun work at Mike Usher number five and company officials say they have submitted a “field gathering pipeline system” to Belmopan for approval. We understand that the pipe would transport oil and gas from the wells to a tank farm facility in the south Iguana Creek area. Down in Big Creek, B.N.E. says it has now completed construction of a forty thousand barrel storage facility which will hold the Belizean oil during shipments. But according to a press release late last month, Belize Natural Energy maintains that other investments hinge on revenue generation and, “a stable tax environment”. That barb appears directed at Belmopan as government negotiators and B.N.E. continue to buck heads over revenue sharing. This morning Acting Prime Minister and Minister of Natural Resources and the Environment John Briceño commented on his government’s proposals to B.N.E.
John Briceño, Minister of Natural Resources/Environment
?What we?ve been saying is that at a minimum, we need to aim to get at least fifty percent of the gross revenues and that is a combination of several factors. The issue of the royalty payments, the production sharing, the purchase or the buy into the field, ten percent that we have already informed the company that we will exercise that option and then the income tax that we will pretty soon introduce.?
Janelle Chanona
?The investments that B.N.E. is making, the tank farms, any pipelines that would come out of their stake, it wouldn?t be joint sharing??
John Briceño
?Again when you look at the, what?s important to look, is the issue of the profits of these companies they do. It does require a lot of infrastructure and some huge or some fairly large investments but once that investment is done, it is paid off over a number of years so that we do believe even with that they will still be making a profit.?
Janelle Chanona
?Some consumers will be saying that it?s a great thing that prices keep going up on the world market because we are now producing oil. But other consumers are saying that here on the ground every time the price goes up, we feel it in our pockets. What message would you send to the Belizean consumer regarding fuel prices?
John Briceño
?Certainly the aim is for us to find a way to reduce the price of fuel at the pump. In the immediate future what we are doing we are having discussions with B.N.E., where we are looking at the possibility of bringing in what they call a tapping unit whereby they can process the petroleum that they are pumping out and separate the raw petroleum with the diesel. They made an analysis of the product that they have right now presently in Spanish Lookout, and that analysis which was done in Houston was found out that about forty five percent of what is being pumped out is already diesel so it?s just a matter of separating it. Once we can produce diesel here certainly it?s going to be at a much lower cost and then we can use that then to offset and reduce the price of fuel. But again, I wish I could tell the Belizean public that will take place in a week or a month?s time but these are huge investments, millions of dollars and it will take some time and we?re trying to do it as quickly as possible so that Belizeans can have a positive impact as quickly as possible.?
Regarding a final decision on a tax rate on petroleum, Briceño says that next week Monday, an oil expert from Trinidad as well as a delegation from the Commonwealth Secretariat will arrive in Belize to consult with government on four areas: tax, the issue of establishing a petroleum fund, opportunities for the strengthening of the department of petroleum and ways of ensuring Belizean participation in the oil industry.
But one group of Belizeans who apparently want no part of the oil industry hails from the Toledo district. SATIM, the Sarstoon Temash Institute for Indigenous Management co manages the Sarstoon Temash National Park. SATIM officials have expressed significant concern regarding Belmopan’s decision to green light seismic surveys in the park. According to Lynette Gomez, SATIM’s technical coordinator, in addition to affecting eco-tourism in the area and negative environmental impacts to local ecosystems, the National Park Act prohibits oil exploration and the co-management agreement signed between their organization and Belmopan contracted government to obtain SATIM’s consent before permits were granted for any type of exploration. Today Minister Briceño officially commented on those issues.
John Briceño, Minister of Natural Resources/Environment
?I have to remind people that I?m also the Minister of Environment and that we need to make or ensure that we are doing everything possible to protect our environment. Once we?ve lost it, it?s gone, we can?t just buy it back like a building that you break done or it?s burnt and you rebuild. So we have to do everything possible.?
?The technical people are telling me that when they left, they did address a lot of their concerns. Obviously after they left they?ve had other questions and they still continue to have concerns and it?s legitimate on their part. And what we intend to do and continue to do and intend to do, is to continue to have discussions with them and try to find a way to work together and move forward.?
According to the Department of Petroleum, a public forum will be held on Thursday night at seven at the George Price Centre in Belmopan to discuss developments in Belize’s oil industry.
