--> The Caribbean and Central America Region: Attractive Fiscal Regimes, Interesting Geology, Lofty Oil and Gas Prices, Political Stability, and a Close Market Provide for a Climate of Exploration, by Ron Harper; #90052 (2006)

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The Caribbean and Central America Region: Attractive Fiscal Regimes, Interesting Geology, Lofty Oil and Gas Prices, Political Stability, and a Close Market Provide for a Climate of Exploration

Ron Harper
IHS Energy, Houston, TX

The past couple of years have seen the Caribbean and Central America region progressively move towards a more favorable hydrocarbon exploration environment with recent activity serving as a precursor of what possibly lies ahead. During the last three years, bid rounds in Cuba, Nicaragua, Guatemala, Jamaica, and Suriname, coupled with competitive terms, have opened doors for oil and gas exploration. Ongoing open-acreage opportunities in Netherlands Antilles and Belize are considered by some as highly prospective. In Nicaragua, potential block signatory MKJ Xploration estimates that the Banco Tyra Block alone boasts in excess of 7 billion barrels of potential oil reserves from the Paleocene/Lower Eocene Perlas Reef. This is what seismic contractor Fugro calls “the Sleeping Giant”, based on 1999 seismic acquired over the area. The USGS has identified the Guyana/Suriname Basin as the 2nd most attractive under-explored basin in the world as well as ranking it 12th for oil among the world's basins either explored or unexplored. All countries are open to exploration with the exception of Cuba which remains under US sanctions, and therefore open only to non-US companies and Costa Rica where exploration for oil and gas is forbidden under the current administration. Another factor encouraging interest in the region is the ready market to the north in the US. The lofty and sustained oil and gas prices have brought marginal projects or less favorable deals above the economic threshold, allowing oil and gas investors and integrated and independent companies to pursue deals in the area.