CMC-Prime Minister Dickon Mitchell says he will be providing a comprehensive report on the technical and economic feasibility of developing Grenada’s hydrocarbon reserves.
Mitchell said he will also be presenting 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.
He said 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 licensing agreement awarded to the Global Petrol Group (GPG) by the previous New National Party (NNP) administration.
“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,” he added.
While presenting the 2023 Throne speech for the ceremonial opening of the Parliament, Governor General Dame Cecile La Grenade said the Mitchell government, which was elected in June 2022, 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 then.
“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.
“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,” she said while announcing that the technical working group would be chaired by former Finance Minister Nazim V Burke.
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 monetize it for the benefit of the citizens and the patrimony of the nation.
Addressing a political meeting for the 2018 general elections then prime minister, Dr Keith Mitchell announced that oil and gas had been 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, the Prime Minister said that he was not in a position to comment on the agreement.
