Anglo-Australian multinational mining, metals and petroleum company BHP Billiton has signed exploration licenses for two offshore Barbados blocks in what could be a return to drilling off the Caribbean Island.
BHP is reported to be the only successful bidder in the country's first exploration round, held in 2007. BHP was awarded the two blocks in 2008, with negotiations finally agreed this year, reports the Barbados Advocate.
According the BHP, the two blocks, Carlisle Bay and Bimshire, are about 40km southeast of Barbados and cover about 5000sq km in 1200-2000m waters depth.
BHP will now need Government approval of an environmental impact assessment and environmental plan in order to start the first three-year phase in its license, which includes carrying out a 2D seismic survey on the two exploration blocks.
BHP Billiton may then enter an optional second phase of three years to perform a 3D seismic survey, followed by an optional third phase of two years to drill exploration wells.
Niall McCormack, BHP Billiton Vice President Exploration said: “Based on what we know about the geological trend in the area, we are optimistic about our chances of discovering hydrocarbons within these blocks."
Barbados' offshore area covers 42,000sq km in 1000-3000m water depth, according to a government presentation. Some 14,000 line km of 2D seismic has been shot.
ConocoPhillips was the only previous operator offshore, acting as the sole operator of entire offshore area with Total as partner. The Sandy Lane 1/1Z well was drilled in the Barbados Trough in 7000ft water depth 130km south of Barbados in 2002. Gas shows were recorded but the trap was believed to have been breached. ConocoPhillips relinquished its operatorship in 2004.
The Government of Barbados says: "Remaining potential appears to be greatest in the south and western parts of offshore Barbados in the Barbados and Tobago Troughs and along the Barbados Ridge. The convergent margin setting means the area is structurally complex, resulting in technically more difficult prospects. Successes in Trinidad & Tobago and Venezuelan waters encourages companies to move northwards."
Image: Barbados. Image from the Government of Barbados.
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