by Linda Straker
- In 2018, Dr Keith Mitchell announced oil and gas were found in Grenada’s marine space
- Technical Working Group chaired by past minister for finance Nazim Burke
- Committee working on contractual and legal obligations and exploration licencing agreement awarded to GPG by NNP administration
Prime Minister Dickon Mitchell will be providing a comprehensive report on the technical and economic feasibility of developing Grenada’s hydrocarbon reserves, as well as a report on the potential environmental and social impacts of hydrocarbon exploration and development in Grenada to the public by the end of November 2024.
“I certainly intend to provide to the Nation before the end of the month a comprehensive update of the work of the Technical Working Group led by former finance minister Nazim Burke with regards to what it has been doing,” Prime Minister Mitchell said in a recent interview held on 3 November.
He explained that the committee has been doing a lot of work to get a complete understanding of the current state of the country’s contractual and legal obligations around hydrocarbons and the exploration licencing agreement awarded to the Global Petrol Group (GPG) by the previous New National Party (NNP) administration of Dr Keith Mitchell.
“I have had one meeting with a representative of GPG, since that time and we have engaged GPG to try and understand and to get a full picture of where we are,” said Prime Minister Mitchell who is also the Minister for Energy and Public Utilities. “And so, by the end of November, I will provide the public with a comprehensive update on the work of the technical working group and where we are in relation to Grenada’s hydrocarbon legal obligation, potential exploration, and any other additional matters raised.”
In presenting the 2023 Throne Speech for the ceremonial opening of the Second Session of the 11th Parliament, Governor-General Dame Cecile La Grenade said that Government was unable to find a complete report about Grenada’s oil and gas situation and a decision has been taken by the Cabinet to appoint a Technical Working Group to demystify the oil and gas situation.
“As of today, we are yet to solve the mystery of Grenada’s offshore oil and gas reserves. Very little records can be found anywhere within the Government, and our technocrats within the Ministries and Departments have very little information on this matter,” she said on 26 September 2023. “In essence, upon assuming office, my Government was not provided with any transition report or any files on Grenada’s legal or contractual obligations or Grenada’s progress in relation to its oil and gas reserves.”
Announcing that the Technical Working Group will be chaired by a past minister for finance, Nazim Burke and comprising Rodney George, Richard Duncan, Raymond Nurse, and the Office of the Attorney General represented by the Solicitor General, the Governor-General said, “This situation is untenable and completely unacceptable and my Government is committed to doing all within its power to unearth the mystery of Grenada’s oil and gas status.”
The mandate of the Technical Working Group is to fully assess Grenada’s hydrocarbon potential and, if found to be commercially viable, devise a strategy and action plan to explore, develop and monetise it for the benefit of the citizens and the patrimony of the nation.
At a political meeting for the 2018 General Elections, then Prime Minister Dr Keith Mitchell announced that oil and gas were found in Grenada’s marine space. GPG at the time had conducted explorations in Grenada’s offshore blocks and a discovery at the Nutmeg-2 well, suggests significant potential but the hydrocarbon reserves have not yet been fully quantified.
Recently, Nigeria’s Oceangate Oil and Gas Engineering company announced that a production-sharing arrangement agreement was signed with GPG covering approximately 7,500 square kilometres of offshore zones. When asked about that deal, Prime Minister Mitchell said that he was not in a position to comment.
