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Are Belize’s Lax Oil Laws A Prospector’s “Paradise”?
posted (January 28, 2011)
OCEANA today called for the government to amend the petroleum act after news surfaced that a new company called Paradise Energy has gotten an oil lease which covers the Maya Mountain Masif and includes the Chiquibul Forest.

It's stirred some controversy because Paradise Energy is a company formed a year ago in February of 2010, and one of the shareholders is Kimano Barrow, the prime minister's nephew. Barrow owns 50% and Alfred Acosta owns the other 50%. And while the name has raised eyebrows, according to Audrey Matura Shepherd of OCEANA, it's not the names as much as the fact that - one more oil lease has been granted without public disclosure, and one more has been given to a company without any oil expertise.

Audrey Matura Shepard, Vice President - OCEANA
"Well what happened is section 13 of the Petroleum Act has 3 sub section; the first section says that the minister can give out contracts; the second says however it has to be to opened to competitive bidding and it must be advertised in the gazette and then the third one says no matter all of that above there, if you want minister just go to the Cabinet and knock on the door, tell your cabinet members this is the contract I want you to consider based on a) the technical and economic circumstances or b) when you deem it fit. Now that is very broad discretion and the problem I have with that and that OCEANA definitely has with that is that, look, every contract will be given behind closed doors because when we check our records going back to the 1990's not one contract was given by open competitive bidding, the only one exception is Island Oil which in 2002 had an ad and that's how we knew it was given out. And remember the one that Paradise Energy Ltd. got, they got it since October 2010. Look when we found out, if OCEANA did not go and have that regular meeting we have with the Director of Petroleum and Geology and ask for a copy of the map we would have never known that there was a new company on the block now."

Jules Vasquez
"Now speaking specifically about Paradise Energy, you all take exception for what reason? That they lack technical expertise?"

Audrey Matura Shepard, Vice President - OCEANA
"And it's not only Paradise Energy, what we need to look at is what the law says. Section 11 of the Petroleum Act is clear as to who could get a contract and it says 'A contract shall only be entered into with persons who demonstrate a proven ability to contribute the necessary funds, assets, machinery, equipment, tools and technical expertise necessary for the effective performance of the terms and conditions of the proposed contract.' It's a petroleum contract, so it is not only Paradise. Paradise may be the recent company. Princess petroleum is one of the worst, they are involved in gambling and casino, no expertise in petroleum, yet they have a petroleum contract."

Jules Vasquez
"You agree you can buy expertise, you can least equipment?"

Audrey Matura Shepard, Vice President - OCEANA
"Yes but you have to have these before because then that would be against the spirit of the law. You have to show that you have this before you enter these contracts. You can't speculate because that's what Princess is doing. Now they are putting on the internet that we are looking for people who want to partner with us and that some groups have shown some interest. Then are you saying that our laws mean nothing and that you can violate wantonly and our leaders will allow that. I don't not believe that is the spirit of our law. But then let's go back to Paradise, when you look at the company search - Paradise was only established February 2010, the 24th of February to be exact if you look at their document of incorporation. I want to see, I've been searching on the internet like mad trying to figure out who are these people and what expertise they have that they could have merited getting a contract and a contract over our Mayan mountains that covers several reserves. it is incredible, it is insane, it is obscene and it is time for us really as a people if we really believe we have an oil industry that can be developed, what is the problem with doing it openly."

Kimano Barrow declined our request for an interview today. The area is considered by geologists to have little or no oil potential.

OCEANA is also calling on government to hold off on issuing a new oil lease for an offshore block covering 1.139 million acres of Belizean waters.

The previous leas-holder Overseas Petroleum Investment Corporation (OPIC), which is the Taiwanese state owned Petroleum Company has relinquished its lease. OCEANA is calling on government to stand down on issuing any new concession for the area until a referendum on offshore oil exploration is held.

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