http://www.emii.com/Articles/2660589/Energy/Top-Stories/Bahamas-Suspends-Offshore-Drilling.aspx

09-02-2010 | Source: World Oil

Following the United States’ six-month ban on deepwater drilling, the Ministry of the Environment in the Bahamas has suspended consideration of all applications for oil exploration and drilling in the waters of the Bahamas. Though a well has not been drilled in the area for 20 years, the Ministry announced that a stringent set of environmental rules would need to be put in place before it considered applications.

Additionally, all existing licenses will be reviewed by the Ministry to determine any legal entitlement for renewal.

The deepwater drilling moratorium immediately affected several Bahamas-focused E&P companies. Shares in oil exploration company BPC, which owns five exploration licences in Bahamian waters to the east of Florida and Cuba, tumbled as much as 50% after the company noted the announcement by the government. BPC said it would continue to analyze seismic data on its existing licenses as it has not yet established a definitive drilling program, according to a Reuters report.

Drilling on BPC’s Bahamian acreage does not face the same geological risks as those found in the Gulf of Mexico, said the company, which called the situation “short term.”

Special thanks to Richard Charter