Jamaica expects ‘play-opening’ well declaration by 2024

Jamaica’s government has not “lost its appetite” for oil and gas exploration, according to energy minister Daryl Vaz.

The official made the comment during his 2022-23 sectoral presentation to lawmakers where he said the ministry “cautiously anticipates a play-opening exploration well declaration by 2024.”

Vaz highlighted the recent two-year extension of United Oil & Gas’ (UOG) license for the Walton Morant offshore area.

He added that UOG has completed a technical work program which includes a prospective resource audit, a well cost and development scenario screening, petroleum systems modeling, seep sampling and studies, and a source rock study.

Regarding well costs, the minister said the range for an exploration well at the Colibri prospect is US$23-28mn, and US$40-48mn for additional appraisal and development work in the case of success.

Source: Energy ministry

Vaz also said that the privatization and future of the Petrojam refinery is still under review by the cabinet, and that actions are in place to optimize terminal operations and reduce costs, and that Solomon Associates has been hired to develop an operational improvement plan.

In addition, the ministry and Petrojam are reviewing recommendations submitted by Muse, Stancil & Co. to determine the required overhaul of the refinery to process extra light crude such as Eagle Ford or Permian.

POWER SECTOR

The official also reiterated plans for renewable energies to account for 50% of power generation in the coming years and the potential launch of a request for proposals this year. Clean energies currently account for around 20%.

“An integral aspect of achieving this goal… is an enabling and adaptive policy and legislative framework, which mirrors the transitions and developments taking place in global energy,” Vaz said.

Work is underway to update the 2009-30 national energy policy, develop an integrated resource plan, prepare a waste to energy policy, and review of the 2015 electricity act.

Other efforts include support for the pumped storage hydroelectric and water project, energy efficiency and conservation, electromobility, and reducing losses.

Vaz said that non-technical losses account for 18-20% of electricity generation.