The Petroleum Corporation of Jamaica (PCJ) is offering 19 offshore blocks and four onshore blocks in a 2010 Bid Round, which was launched at a road show in London in early March. The large prospects will be available in the frontier basin bid round, and a follow-up road show will be conducted April 27 in Houston. Deadline for applications is March 1, 2011.

Seismic shows potential

Results from a 5,406-mile (8,700-km) 2-D multiclient seismic survey conducted in 2009 by CGGVeritas indicated between 5 and 6 miles (8 and 10 km) of sediment could lie to the south and west of the island with the data showing structural, stratigraphic, and reef leads. The blocks have leads with the potential of between 200 MMbbl and 1 Bbbl of oil-in-place.

Of the 24 leads that has been identified in the Walton Basin, the Coopers and Bluefield prospects are of particular interest as they have the potential of 352 MMbbl and 290 MMbbl of oil-in-place, respectively. The round will focus on deeper horizons in the Cretaceous and not necessarily horizons in the Tertiary.

Getting in the game

A total of 23 blocks are on offer in the Jamaica 2010 bid round. (Map courtesy of IHS)

Companies interested in participating in the round must purchase two data sets: Jebco Alliance Report for US $25,000, which covers the hydrocarbon potential of Jamaica, and a supplemental report for $15,000, which was to be available at the end of April. Complementary and optional data sets also are available.

Highlights of the terms of the bid round are as follows:

• Five-year primary exploration period;

• 20-year production period;

• Optional 10-year extension of production period;

• 33 1/3% maximum income tax rate and/or possible tax exemption for a number of years;

• No restrictions on production exports or repatriation of capital;

• Ability to recoup production exports or repatriation of capital;

• Ability to recoup production costs, make return on investment, defray tax and royalty obligations, before sharing profit with government;

• An annual sum (to be negotiated) to be spent on training of Jamaican personnel;

• Allowing sale, farm-out or joint venture opportunities to companies; and

• Excess gas could be monetized by creating methanol, fertilizer, urea, CNG, GTL, LNG or GHN.

The Jamaican deepwater blocks covered by the 2009 CGGVeritas multiclient survey that offers a variable density of a 6- to 25-mile (10- to 40-km) grid, provides good primary reflection events down to approximately 5 to 6 miles below the sea floor. The new data show a number of structural leads with stratigraphic opportunities as reefs and onlap plays occur at water depths of 4,921 to 7,218 ft (1,500 to 2,200 m). The leads include carbonate buildups as well as pinchout geometries and clastic sediments. The structural leads alone could offer areal closures from 31 to 309 sq miles (80 to 800 sq km) the main leads offer good-top seal potential.

Past drilling on the blocks on offer has been minimal, with seven wildcats drilled onshore, two of which had oil and gas shows. In the offshore blocks available, only two wells have been drilled. Both were dry holes.

Prospectivity and equitable terms make Jamaica a viable candidate for exploration. While gas demand and price may discourage some from pursuing the area, those companies possessing the grit and financial resources may find Jamaica too tempting an opportunity to pass up.

Regardless of the eventual winners and future players in the Jamaican frontier, the rest of the story will be told at the end of the drill bit.

Additional information on the bid round can be obtained from Chris Matchette-Downes at MDOIL Ltd., 68 Glade Road, M. Buckinghamshire, SL7 1DH, England, or phone +44 70908 208345.

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