BAHAMAS-based explorer BPC has been hit after the Ministry of The Environment suspended consideration of all applications for oil exploration and drillings in its waters.
Shares in the London-listed oil minnow, which owns five exploration licences in Bahamian waters to the east of Florida and Cuba, tumbled as much as 50% on August 31.
“The Ministry seeks, by this decision, to maintain and safeguard an unpolluted marine environment for The Bahamas, notwithstanding the potential financial benefits of oil explorations,” the Ministry said.
The decision follows the oil disaster in the Gulf of Mexico and a similar decision by the Italians who set up an exclusion zone around their coastline.
“Given recent events involving oil exploration and the efforts to prevent pollution, this prudent safeguard is essential to preserving the most vital natural resource of The Bahamas, its environment,” the agency said.
The move by the Bahamas, where a well has not been drilled for 20 years, follows the US issue of a six-month ban on deep-water drilling in the Gulf of Mexico.
BPC said it would continue to analyse seismic data on its existing licences, as it has not yet established a definitive drilling programme.
“Whilst we note this short term situation, there are exploration activities including drilling, proceeding in adjacent Cuban waters and significant previous drilling within the company's current licence areas that we believe we do not face the same geological risks as those encountered in the US Gulf of Mexico,” said Alan Burns, CEO of BPC.
“We enjoy a good relationship with Bahamian authorities and are confident that this situation will be resolved quickly.”
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