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The Oil Story in Jamaica: Examining the Promise and the Reality
1. Historical Drilling & Seep Discoveries
• Between 1955 and 1982, Jamaica drilled 11 exploratory wells, both onshore and offshore. Many exhibited hydrocarbon shows, but none yielded commercially viable quantities.
• In 2019, the Petroleum Corporation of Jamaica (PCJ) confirmed the discovery of a third live onshore oil seep, originating from a source rock approximately 160 million years old. While intriguing, this find was not considered commercially promising.
2. Current Energy Landscape
• Jamaica remains heavily dependent on imported oil—around 80,000 barrels per day—to meet industrial, transportation, and electricity demands.
• The Petrojam refinery in Kingston processes approximately 30,000 barrels per day, refining crude imported from countries like the U.S., Mexico, Ecuador, and Venezuela.
3. Exploration Potential: Walton-Morant Block
• A UK-based company, United Oil & Gas (UOG), holds a 100% stake in the expansive Walton-Morant offshore licence — spanning roughly 22,400 km² south of Jamaica.
• Seismic data (including 2,250 km² of 3D seismic) suggests potential for up to 7 billion barrels of unrisked mean/mid-case prospective resources, based on aggregated estimates across 21 prospects and leads.
• An independent Gaffney Cline assessment highlights 11 “high-graded” leads and prospects—together estimated at around 2.4 billion barrels of recoverable resources (unrisked mean).
• The Colibri Prospect in Walton Basin alone is estimated at 406 million barrels (mean, unrisked), with upside potential exceeding 900 million barrels.
• Economic modelling suggests that Colibri could remain commercially viable even if oil prices fall to US $30/barrel, with attractive return estimates at US $60/barrel.
4. Progress & Caution: Licensing and Technical Work
• In early 2024, UOG secured a two-year extension on the Walton-Morant licence (now running until early 2028), aiming to complete piston-core sampling and further seismic work ahead of any drilling program.
• UOG has confirmed no wells have been drilled yet, and no oil discovery has been made to date. Their current work focuses solely on de-risking the prospects through technical evaluation.
5. Future Prospects: Morant Basin and James Bond-Themed Targets
• While Walton Basin is relatively better explored, the deeper and less mature Morant Basin holds frontier-scale potential, with James Bond–inspired prospects such as Thunderball (600+ million barrels) and others like Moonraker and Blofeld.
What Lies Ahead?
• Technical Evaluation: Piston-core sampling and refined seismic work over the next couple of years will be pivotal in determining the viability of these prospects.
• Drilling Campaigns: Only if these technical indicators show promise will UOG or partners move to drill—likely beginning with the Colibri Prospect.
• Economic & Environmental Oversight: Commencement of drilling will require rigorous regulatory approvals and strong environmental safeguards.
• Broader Benefit: A successful discovery could dramatically shift Jamaica’s energy landscape, reducing import dependence, generating revenue, and potentially transforming its energy economy.
Final Thoughts
While Jamaica’s oil sector shows tantalizing promise—with estimates of billions of barrels offshore—the reality is still speculative. So far, exploration remains at an early stage, with Guam-sized resources based only on seismic and geological inference, not actual production. However, should drilling confirm these estimates, it could rewrite Jamaica’s energy playbook.
Attached is a news article regarding oil found in Jamaica
Article written and configured by Christopher Stanley
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