6 days ago
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United Oil & Gas Plc has received environmental approval to collect sand samples from Jamaica’s seabed for testing.
The presence of oil in the samples would strengthen United’s case in its efforts to recruit a partner to invest in setting an oil rig in Jamaica within three years.
The approvals by the National Environment and Planning Agency include a permit for construction and “prospection” related to non-renewable resource extraction, and a beach licence for conducting bathymetric, geotechnical, and environmental baseline surveys.
Years ago, the company collected computer data in 2D and 3D format, which showed oil-like substances under the seabed. The NEPA approvals will allow United Oil to extract 40 to 60 long cylindrical samples in a piston core survey within the Walton-Morant zone, which it is licensed by the Jamaican government to explore.
“These will be sampled for the presence of hydrocarbons,” said United Oil, which continues its quest to prove whether oil exists in commercial quantities offshore Jamaica.
Independent estimates of the Walton-Morant block suggest it may hold 2.4 billion barrels of unrisked oil resources, with United’s internal projections being seven billion barrels.
United Oil has operated offshore Jamaica since 2018, when it acquired a 20 percent stake in the licence from fellow UK company Tullow Oil. Its exploration licence expires in January 2028, after several extensions.
United Oil has previously said drilling a well in Jamaica would require an investment of over US$30 million.
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