7 News Belize

OCEANA Against PSA's
posted (February 5, 2013)
We've been reporting for months now on Oceana Belize's challenge to 6 offshore oil drilling contracts - or Production Sharing Agreements - which the Government of Belize entered into between 2005 and 2007.

Those contracts currently exist with the entities: Island Oil Belize Ltd, Tropical Energy Ltd, Petro Belize Co Ltd, Princess Petroleum Ltd, Providence Energy Belize Ltd and Sol Oil Belize Ltd.

Well, after months of preliminary adjournments, the substantive matter which was brought by Oceana Belize, COLA, and The Coalition to Save Our Natural Heritage was heard to completion before Justice Legall.

After a lengthy 4 hours of arguments from Senior Councils Denys Barrow and Godfrey Smith, the hearing came to an end, and 7News spoke to both sides.

Here's how they outlined their legal arguments:

Denys Barrow - Attorney for GOB
"The case seeks to challenge 6 contract agreements for petroleum operations over different large blocks of land in Belize ranging from 200,000 plus acres to 2 million acres. These contracts were made in 2004 and 2007. The essential point we made is that it is far too late to be challenging these things now especially since they are seeking to challenge not the decision making but the lawfulness of the contract and in our view that is something which is beyond the level at this stage."

Audrey Matura-Shepherd - VP, Oceana Belize
"We made several strong arguments we believe. One of them is definitely that we believe that the petroleum act has been violated, that there are these provisions in the petroleum act that site out who qualifies to get a contract and clearly we said that it had to be that according to section 11 of the petroleum act you had to prove your ability to carry out any oil exploration. It was interesting that in the written submission of the other side they were saying no, that you could even get a shell company. Once the shell company later on had companies to back them up that's ok and we are saying that cannot be in the right vein of the law."

Denys Barrow - Attorney for GOB
"As I understand it OCEAN's main concern is with the reef, with marine areas and so on. The advocacy that I am aware of does not direct itself largely to land base activities. In the submission that we made we indicated that while the block areas include marine areas there is not any indication at this stage that anybody is looking to do any offshore oil exploration even at this stage. Certainly the possibility exist but we suggest that until it gets closer to our probability or a threat of doing so there is not anything for us to be concern about."

Audrey Matura-Shepherd - VP, Oceana Belize
"They said that we are coming pre-mature; it's as though you have to wait for some major damage to happen and then you say okay, let's put into effect these laws. It would be interesting to see how the court rules. Definitely we are asking that they quash the contracts and that's one of the big dispute that this side has. We are asking at minimum there should be a declaration, that these contracts are invalid, null and void."

Vice President Matura-Shepherd also added, quote, "It is a victory to even have the matter heard before the Supreme Court." End Quote The GOB is being represented by attorneys Denys Barrow and Naima Barrow, and the claimants are being represented by attorney Godfrey Smith.

Justice Legall has reserved judgment to be handed down at a date to be announced.

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