Nassau, Bahamas - The following is a statement by The Hon. Kenred M.A.
Dorsett, M.P., Minister of Environment & Housing's Update on
Petroleum Legislation delivered on 8th October, 2014:
The Government has completed the preparation of a new
Petroleum Act and a suite of regulations designed to guide and govern oil
exploration in The Bahamas as an integral part of the recently announced
National Energy Policy. This new legislative package will also include the
legislative framework for a Sovereign Wealth Fund to ensure that in the event
oil is discovered in commercially viable quantities, the wealth that will
accrue to the nation as a result will be invested, managed and conserved in the
most optimal way for present and future generations of Bahamians.
The new legislative package will be introduced to
Parliament as soon as it meets following the short recess.
In the meantime, it should be clearly understood that the
new legislative regime will ensure that exploration for oil in The Bahamas will
be undertaken in a safe and environmentally responsible manner, consistent with
international standards, best practices and the most up-to-date risk
management, health and safety protocols.
It goes without saying, that if oil is discovered in
commercially viable quantities in The Bahamas, it will have a massively
transformative effect on our fortunes as a people. It will allow us to deliver on our commitment
to eliminate the fiscal deficit while at the same time providing a platform for
the systematic reduction in the cost of electricity on a sustained basis for
consumers both residential and commercial.
Longer term, it will vastly increase the wealth of the nation through
the creation of a flourishing new industrial sector and a sovereign wealth
fund, one that has the potential of enriching the nation beyond its
imagination.
But first things first : it‘s obviously important that we
not count our chickens before they are hatched.
That’s why it is so important that we put in place a new, modernized,
up-to-date legislative framework, of the kind I am foreshadowing today, one
that will enable us to find out, through licensed and properly regulated
exploration, just what we have in the way of petroleum resources. If as a result of such exploration, we do
discover oil in commercially significant quantities, we will already have put
in place a legislative regime to ensure that we make the best of it in an
environmentally responsible way and in a way that will ensure the best possible
financial returns for our nation.
The Bahamian people should be rest assured, that our government remains
resolute to its commitment to actualizing
those objectives.
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