CARICOM

Bahamas Petroleum raises $2.5M

The company raised $2.54 million via a share placement. The funds raised, together with the existing cash, will be used as Bahamas Petroleum’s working capital over at least 12 months, as it seeks to secure a farm-in partner to finance an exploratory well on the company’s 100 percent-owned Bain, Cooper, Donaldson, and Eneas licenses.

The government of The Bahamas awarded the company an extension until December 31, 2020, for the second exploration period on the licenses back in late February.

During the extension period, BPC has an obligation to drill an exploration well in the acreage which the company says has “a multi-billion-barrel potential.”

BPC expressed confidence that it would be able to attract a farm-in partner since the licenses have been extended with discussions already ongoing with “a number of potential farm-in partners.”

Simon Potter, CEO of BPC, said: “Our focus at Bahamas Petroleum remains clear and unwavering: to drill an initial exploration well on our highly prospective acreage in The Bahamas.”

“We have a world-class drill-ready asset, with multi-billion-barrel potential as certified by third parties. The Bahamian regulatory regime is fully enacted, and we have a clear license term through to the end of 2020 […]. Now, with today’s placing, we have secured the funds needed as we continue to seek a farm-out agreement, and thereafter move forward to drilling of the initial exploration well and realizing the offshore potential in The Bahamas. I would like to thank existing and new shareholders for their continued support and I look forward to updating them on further progress in due course.”

As for the development of the southern licenses, BPC presented a conceptual forward work plan in June 2017, with an exploration well planned in 2018 – which didn’t happen – and in case of a discovery, an appraisal well would follow in late 2019, and if all goes well, a production would start in 2023 via an FPSO.

The search for a partner was not the first one BPC conducted for these licenses. The company suffered a setback last year after an unnamed oil major pulled out from exclusive talks over a potential a farm-in.

Placing Summary

The Placing will raise, in aggregate, $2.544 million before expenses through the placing of, in aggregate, 120,000,000 new Ordinary Shares at a price of 1.6p per share. The Placing Shares to be issued will rank pari passu in all respects with the Company’s existing Ordinary Shares and will represent approx. 7.1 per cent. of the Company’s enlarged issued ordinary share capital, following admission of the Placing Shares. 7.2 million unlisted warrants to subscribe for new Ordinary Shares at the Placing Price per share for a period of 24 months from the earlier of the business day following passing of the relevant resolutions at the Company’s next AGM or 1 January 2020, are to be issued to Shore Capital as part compensation for services provided under the Placing.

Application will be made for the 120,000,000 Placing Shares to be admitted to trading on the AIM market of the London Stock Exchange (‘AIM’) and it is expected that admission will take place and trading in the Placing Shares will commence from 8:00am on 22 March 2019.

Total Voting Rights

Following the Admission, the Company’s issued share capital will consist of 1,692,719,096 Ordinary Shares, with each Ordinary Share carrying the right to one vote. The Company does not hold any Ordinary Shares in treasury. This figure of 1,692,719,096 Ordinary Shares may therefore be used by shareholders in the Company, as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure Guidance and Transparency Rules (‘DTRs’).

The directors consider that the proceeds of the placing, together with the Company’s existing financial resources will provide sufficient working capital for its currently anticipated requirements for at least the next 12 months.

Highlights of the Placing:

• • Placing to raise gross proceeds of US$2.54 million through the issue of 120,000,000 Placing Shares at a price of 1.6p each.
  • Proceeds of the Placing will fund the Company as it seeks a farm-in partner to finance an initial exploratory well on four southern licences in The Bahamas.
  • BPC is confident of being able to attract a farm-in partner now its licences have been extended to 31 December 2020.
  • Discussions are ongoing with a number of potential farm-in partners.

 

Wärtsilä bags Bahamas LNG-ready power plant deal

Technology group Wärtsilä has been contracted to deliver an LNG-fueled power plant to utility Bahamas Power and Light (BPL).

The 132 MW engine power plant has been ordered on a full engineering, procurement, and construction (EPC) basis. The plant is due to go into commercial operations after delivery scheduled for summer 2019.

The plant will operate on seven Wärtsilä 50 engines fueled primarily with liquefied natural gas (LNG) when it becomes locally available, but can in the meantime operate on conventional heavy fuel oil.

The installation will be in BPL’s existing Station A on the island of New Providence, which is being stripped of all of its current slow speed reciprocating engines to make room for the new Wärtsilä generating sets.

BPL is on a parallel path to install additional generating capacity as quickly as possible in order to meet demand, and to replace existing temporary generating assets.

Wärtsilä engines were selected because of the flexibility to be upgraded to burn natural gas when LNG becomes available on the island.

Green Energy

Under a joint United Arab Emirates-Caribbean Renewable Energy Fund, the Bahamas installed a new solar park at Thomas A. Robinson national stadium which includes two electric vehicle charging stations.

The 925-kilowatt plant replaced the equivalent of 310,000 gallons of diesel fuel each year. The government plans to derive 30 percent of its nationwide energy usage from green sources by 2030. “Our vision is to deliver world-class renewable energy technology to meet the needs of a developing and expanding 21st century economy, The energy generated from these solar panels will feed into our national grid, and offset some of the electricity usage of neighboring schools.”

Dominica

One of the region’s most ambitious projects won a major boost from the World Bank. The global institution approved a $27 million project to support the construction of a 7mw geothermal power plant that has long been in development.

“This is an extraordinary opportunity for Dominica to reach its energy and climate goals by investing in geothermal, and to build a greener and more resilient future. The country has huge potential to provide reliable, low-cost renewable and high-quality energy in support of climate resilient growth,” said Tahseen Sayed, World Bank Country Director for the Caribbean.

The Geothermal Risk Mitigation Project, could significantly lower electricity costs and increase the share of green energy in the energy mix from 25 to 51 percent.

The plant could also generate enough power to export “homegrown geothermal energy” to neighboring islands. Developing geothermal energy, which derives power from underground reservoirs of heat, has long been a goal for volcanic countries .

CARICOM CACOTOPIA

 President Trump dangled investment in a rare meeting with five island leaders siding with the United States in backing Venezuelan opposition leader Juan Guaido.  He promised that a high-level delegation from the Overseas Private Investment Corporation, the U.S. development lender, would visit their nations in the next 90 days.

“It’s absolutely important that it’s not just talk – that there will be real investment,” said Jamaican Prime Minister Holness who met St Lucia Prime Minister Chastanet, Dominican Republic President Medina, Haiti President Moise and Bahamas Prime Minister Minnis at Trump’s private club on Mar-a-Lago estate in Palm Beach, Florida, Though the White House did not specifically tie the carrot of investment to their support, the backing of the five islands for Guaido led to the meeting,

They defied other members of the Caribbean Community in supporting Guaido. CARICOM officially advocated for talks between President Maduro and Guaido who heads Venezuela’s national assembly and invoked the constitution to assume the interim presidency in January, saying Maduro’s election was not legitimate. Most members rejected resolutions by the Organization of American States supporting Guaido. Maduro clung to power with the support of Venezuela’s military, Russia, China and Cuba.

The region has long relied on oil and gas from Venezuela, which offered cheap financing through the Petrocaribe programme but shipments declined in recent years with production cuts at SOC PDVSA.

Lima Group members are virtually unincorporated territories of America, benefitting from aid, investment, culture and tourism through proximity to the mighty USA, while Trinidad & Tobago flounders with sovereign rights.

Bocas del Dragon

In an unprecedented, massive rebuff, Trump blacklisted Prime Min­is­ter Row­ley of Trinidad & Toago, St Kitts/Nevis Prime Min­is­ter Har­ris (Cari­com chair­man and Bar­ba­di­an Prime Min­is­ter Mot­t­ley As the White House an­nounced Trump’s meet­ing, US Am­bas­sador Joseph Mon­del­lo met Op­po­si­tion UNC Leader Kam­la Per­sad-Bisses­sar in Port-of-Spain, now awaiting regime change in the aftermath of the energy calamity.

EOG Resources of USA, the third largest gas producer in Trinidad and Tobago is expanding operations and increasing investment after operating for over 25 years there. Further transfusion of US investment will be a lifeline for the multinational 7-island archipelago, reeling from a subsaharan scenario. of crime, femicide, homicide, corruption, floods, bureaucratic incompetence, racism, migrants, drugs and homelessness. As the Commonwealth crumbles in the wake of Brexit, a sensible solution can be achieved by seeking new status as an unincorporated territory of the USA, which offered free trade with the UK .

The White House said that Trump will meet the lead­ers in an ef­fort to strength­en co­op­er­a­tion on se­cu­ri­ty and trade is­sues, thank the lead­ers for their sup­port for peace and democ­ra­cy in Venezuela. and dis­cuss po­ten­tial op­por­tu­ni­ties for en­er­gy in­vest­ment. The Unit­ed States re­mains “a good friend to the Caribbean and seeks to build on a proud lega­cy as the re­gion’s part­ner of choice.”

Trump in­vi­ted Ja­maica, the Ba­hamas, Haiti , Guyana and St Lu­cia. which in Jan­u­ary sup­port­ed an Or­ga­ni­za­tion of Amer­i­can States (OAS) res­o­lu­tion re­fus­ing to recog­nise the le­git­i­ma­cy of Pres­i­dent Maduro’s sec­ond term: Guyana al­so sup­port­ed the OAS vote. Do­mini­ca, St Vin­cent/Grenadines and Suri­name vot­ed against. St Kitts, Trinidad &Tobago, An­tigua & Bar­bu­da, Bar­ba­dos and Be­lize ab­stained.

St Lu­cia did not sup­port Maduro and called for fresh elec­tions. The in­vit­ed coun­tries were orig­i­nal mem­bers of the Li­ma Group in the OAS, which in­cludes the US, Cana­da and oth­er Latin coun­tries. The Pres­i­dent of Guyana is ill and on­ly heads of gov­ern­ment were al­lowed. Bar­ba­dos, St Kitts and Nevis and T&T were not in the Li­ma group,

Trump’s cau­cus comes two months af­ter Venezuela’s po­lit­i­cal cri­sis arose when Na­tion­al As­sem­bly leader Guai­do de­clared him­self in­ter­im pres­i­dent af­ter “in­valid elec­tions.” The US and oth­er coun­tries sup­port­ Guai­do against em­bat­tled Pres­i­dent Maduro. US sanc­tions against his ad­min­is­tra­tion in­ten­si­fied and Trump re­it­er­at­ed that “all op­tions are on the ta­ble” re­gard­ing Venezuela, in­clud­ing mil­i­tary in­ter­ven­tion and the “tough­est sanc­tions” are ahead.

Cari­com main­tained a non-in­ter­ven­tion, non-in­ter­fer­ence pol­i­cy. Har­ris, Row­ley and Mot­t­ley lob­bied the Unit­ed Na­tions for peace­ful res­o­lu­tion, supported the Mon­te­v­ideo Mech­a­nism for di­a­logue at a Uruguay meet­ing with Mex­i­co and held talks with EU rep­re­sen­ta­tives. .

In Trinidad, humiliated and hubristic, the Prime Minister, smarting from the stinging snub, denied hostility to America. “The United States remains a friendly country and insofar as we might have a disagreement as to the approach on Venezuela, it has nothing to do with the relationship between the people of the United States and the people of Trinidad and Tobago…. (who) can stand tall and proud that it has stood by the Unit­ed Na­tions Char­ter prin­ci­ple of non-in­ter­ven­tion ..”

Members of the Lima Group opposed to President Maduro were invited not in their capacity as Caricom members. A Cari­com cau­cus re­sponds on such is­sues.

Chronic di­vi­sions among 14 Cari­com members prevented a united front since they sabotaged the dysfunctional West Indies Federation. Speak­ing with one voice is an elusive ob­jec­tive. Venezuela ren­dered vul­ner­a­ble Cari­com more sus­cep­ti­ble to “com­pet­ing bi­lat­er­al al­liances” with the po­ten­tial to un­der­mine the phantom Sin­gle Mar­ket and the Econ­o­my (CSME) and regional ventures in airlines, universities, energy, environment, borders, finance and security.

Like compatriots with links to the USA, bastion of freedom and democracy, for­mer For­eign Af­fairs Min­is­ter Ralph Maraj regards the select meet­ing as a sign that Pres­i­dent Trump noted the stance of Trinidad and To­ba­go in his public embargo. “The dis­tance be­tween Port-of-Spain and Wash­ing­ton has grown. We do not stand tall, con­trary to what Dr Row­ley has stat­ed, we stand di­min­ished in the re­gion, we have lost our lead­er­ship of Cari­com .. Ja­maica now is lead­ing the way.” The Gov­ern­ment should have ar­tic­u­lat­ed a greater con­cern about Venezue­la, its closest neigh­bour. “We’ve re­al­ly ab­di­cat­ed the lead­er­ship in Cari­com and we have ob­vi­ous­ly of­fend­ed the Unit­ed States and while we have sov­er­eign right to deal with our for­eign re­la­tions we stand by the prin­ci­ples and so we must al­so pro­tect our re­la­tion­ships.” The undiplomatic prime min­is­terial blunder compromised the re­la­tion­ship with the US, al­ready stymied, giv­en that the Land of the Humming Bird is no longer a major in­vest­ment lo­ca­tion for the world’s largest natural gas producer. “The Unit­ed States does not need to in­vest in our petro­chem­i­cal in­dus­try any­more.They don’t need our gas, they don’t need our oil. They are a net ex­porter now of both oil and gas. We have lost our eco­nom­ic clout.” Kept afloat by foreign energy investors, the bumbling regime whose flawed founder fled the USA, should re­pair its strained rap­port with the world’s largest economy in view of its sta­tus as a ma­jor trade part­ner for the region.

Caricom Secretary General and Foreign Ministers of Jamaica and Trinidad & Tobago recently met members of Juan Guaido’s team for the first time, apparently in Barbados, following a meeting of the Lima Group there.

As Venezuela peers into the abyss, repercussions rumble across the Gulf of Paria in Trinidad, seared by black power unrest that ruined the economy and social cohesion in April 1970, spurring migration to North America.
The Venezuela crisis will delay receipt of gas from the Dragon deal. Discussions among stakeholders including the two governments, National Gas Company (NGC), Shell and PDVSA have progressed well over the last two years resulting in the execution of several documents including the term sheet in August of 2018 between PDVSA, NGC and Shell outlining the key parameters for the development and the sale of gas from the Dragon field.
The final step involved negotiation of a fully-termed gas sales agreement which will inform the final investment decisions by the parties.

Challenges in Venezuela have adversely affected the projected pace of these discussions. However, all stakeholders are confident that given the sound technical and commercial basis with which the project has been developed and the obvious benefits which will accrue to both countries all outstanding issues can and will be comfortably addressed. First gas is expected to arrive in the latter part of 2021.

If there are delays that time line will stretch. The situation is very fluid. There was no direct monetary investment. In the long term there is a good symbiotic relationship between Eastern Venezuela and Western Trinidad’s gas infrastructure. All are confident that when the dust settlesthe deal can continue forward.

Cayman Islands

Prince Charles, shown with a blue iguana, officially opened the new, modernized state-of-the-art Owen Roberts International Airport, built by McAlpine and designed by RS&H. The striking eco-friendly airport includes a geothermal air conditioning system, a reflective roof, high-efficiency LED lighting. a new shopping gallery, food court, boarding gate system, ticketing hall, immigration hall, restaurants, to amenities for mothers and a play area.

Guyana

Guyana – Barbados Stock Exchange

The Guyana and Barbados Stock Exchanges signed a Memorandum of Cooperation (MoC) in Georgetown. The alliance will lead to improved local financial literacy for the proper functioning and intermediation of the financial system. Financially-literate businesses will lower the cost of borrowing by issuing shares. Investors with a high level of financial literacy will diversify their investment portfolio by purchasing shares in profitable businesses . This should logically be the forerunner of a regional stock exchange.