Belize Natural Energy will finance, interest free, government's purchase of 10% of the oil company's equity. BNE Director Sheila McCaffrey today confirmed this to 7NEWS. It had been a subject of some debate between government and the company last week and part of the reason for the ministry of natural resources to issue BNE with a stop order. According to our information, at the time BNE would only commit to finance half the acquisition. But after meetings early this week, the difference was ironed out and BNE has committed to everything, interest free. That's one hurdle out of the way between government and the oil company, but another significant one remains as government ponders a tax regime for petroleum companies. Government is weighing the option of imposing a business tax on gross earnings similar to BTL's which is levied at 19%.
Another company expected to fall under this tax regime is Island Oil Belize Limited. That company is expected to start drilling in the sea off Monkey River possibly by the end of April.
