Minister of State in Foreign Trade and Business for Barbados, Sandra Husbands, said the government announced that its 2022 offshore licensing round will be launched on December 1, 2022.
This represents a delay of one month, after previous information from the Ministry of Energy and Business indicated that the auction would launch on November 1.
OilNOW understands that the auction will open 22 offshore blocks for bidding by international oil companies (IOCs).
The Government Information Service of Barbados quotes Husbands as saying: “Interested companies will be invited to nominate acreage from available blocks, for inclusion in the bidding process. The upcoming licensing round presents an opportunity to explore the island’s untapped deep-water potential under a competitive legal, fiscal, and regulatory framework.”
She said the energy sector is key to transforming the economy of Barbados. She explained that energy is critical to national development and that it facilitates possible investments, innovation, new industries, and jobs, to sustain economic growth.
“The ultimate goal is to ensure that the country’s transition from fossil fuels to 100% renewable energy sources is realised. This way, we can ensure that all Barbadians have access to energy that is reasonably priced, reliable, and sustainable,” Husbands explained.
The government has explained that it is pursuing oil and gas exploration because it would help to advance investment in renewable and alternative energy. The government plans to use the sector to make Barbados energy secure and economically diverse.
The offshore oil and gas sector can offer significant opportunities for the Barbadian people, including foreign exchange earnings, institutional strengthening, capacity-building, creation of jobs and technological advancement.
The government is advancing the Barbados Energy Local Content Development Project aimed at progressively increasing access to, and participation of local vendors and businesses in the energy industry and industry value chain of the emerging energy sectors.
Guyana also intends to launch an offshore auction, likely later this year. It was delayed for several reasons, including the need to establish the right fiscal framework to attract investment and secure sufficient value for the country’s development plans.
