The Bahamas (File photo)

Petroleum company to offer shares to local investors in Bahamas

The Bahamas (File photo)

The Bahamas Petroleum Company (BPC) has announced plans for a mutual fund that will offer Bahamian investors an opportunity to participate in the ownership of the company.

“In conjunction with its advisors, the company will be seeking to develop and implement a Bahamas-domiciled mutual fund investment vehicle with the sole mandate of owning BPC shares. Thus it is intended that through this mutual fund, Bahamians will be able to invest in the company and thus in the exploration and potential development of hydrocarbon resources in The Bahamas.

Bahamian investment firm, Leno Corporate Services Limited, was engaged to BPC’s advisor.

It said it expects that, following a further process of consultation with Leno and various administrators here, details of the proposed mutual fund, including the terms, how investors’ interests in BPC would be reflected, eligibility, anticipated time frame and manner of subscription, will be confirmed in the coming weeks.”

Earlier this year, BPC said it had been successful in raising the estimated US$25 million needed to drill an exploratory oil well in the southern Bahamas next year.

BPC said it hopes to have an exploratory well drilled before July and thinks the rock structures beneath The Bahamas have the potential for four billion barrels of oil. It said it had also provided an update on its environmental authorisation (EA) process, which is a mandatory step before drilling can proceed.

BPC engaged environmental consulting firm CSA Ocean Sciences to develop and submit a terms of reference document, which was approved by the BEST Commission.

It said in the coming weeks, CSA will proceed to deploy the necessary vessel to the site to commence the physical work of sample collection and thereafter proceed to the detailed biological, chemical and physical analysis of samples collected, as required and agreed with the government.