Oil exploration in the Bahamas has taken a step forward after a new Petroleum Act and regulations to guide and govern oil exploration in was placed before the Parliament of The Bahamas.
The draft legislation is now likely to go through three readings in the parliament before consent by the senate and passage into law.
Bahamas Petroleum Company, which has licenses in the Commonwealth of the Bahamas, says fiscal terms in The Bahamas are specified in license agreements, so will not be affected by the new legislation.
"The company considers this to be an important step forward in enabling the discharge of its obligation to the Government of The Bahamas in achieving its goal of drilling the first modern oil exploration well in The Bahamas since those completed in the 1970s and 1980s," said BPC.
In addition, a Sovereign Wealth Act has been proposed to provide the legislative framework to ensure that the accrued wealth from any successful exploration outcome would be optimally invested, managed and conserved for the benefit of this and future generations of Bahamians.
Simon Potter, BPC's CEO, said: "The ratification of the Act and associated regulations will go a very long way to ensuring The Bahamas is an attractive place for companies from within this internationally competitive industry to maintain and increase capital investment.
"Bahamas Petroleum Company welcomes a framework of modernized and strengthened regulations designed to safeguard compliance with international standards and ensure exploration activities in The Bahamas are conducted in a safe and environmentally responsible manner such that all stakeholders may benefit from a successful outcome of such activities."