Two local oil companies owned by Independence Village businessmen, BCH and AMT have been dominating the news for the past two days. That's because they've got production sharing agreements to explore blocks 6 and 15 in the Pine Ridge area. Experts say these are two of the most high potential blocks in the country, because they adjoin the Spanish Lookout oil field. And that's why they've been in the news. Because if oil is found in these fields, under the production sharing agreements that have been signed, they would only give a marginal return to the government as a production share.
And last night your heard former Natural Resources Minister Johnny Briceno say that if he was still Minister he could not support that. And more than that he said that when he was Minister of Natural Resources, he reviewed the proposals from BCH and ZMT and recommended a production share far greater than what was signed unto.
So why did Cabinet make the decision it did? That's what we set out to ask the Prime Minister today. We caught up with him in Burrell Boom. He was touring the Belize River Valley as part of his pre-election tour - which he has now called "the time is near." The Prime Minister agreed to a brief interview, but said he first had to have a small meeting. That meeting was with Minister of Natural Resources, Florencio Marin, who is touring with the PM. Marin is pivotal in the whole uproar, because he signed the production sharing agreements. He and the PM spoke briefly and while we would have wished to have been a fly on the wall - all we got was two and half minutes with the boss.
And if you listen closely one of those minutes is spent under steady harassment from the PM's handler, Nuri Mohammed. So here's what the PM had to say.
Rt. Hon. Said Musa, Prime Minister
"My impression? My impression is that it reflects the decision of the Cabinet."
Jules Vasquez,
John Briceno, former Minister of Natural Resources, has gone on record to say he submitted a far more stringent proposal before he left office. Did the Cabinet approve that?
Rt. Hon. Said Musa,
"The Cabinet approved what the Minister signed, Minister Marin. Minister Briceno when he presented his proposal, the Cabinet had not taken a decision yet and there were various formulae that he presented as to how these things can be handled. The point was made that they were waiting on the Commonwealth Secretariat Report on this matter. I will only mention this point: first of all that we increased the tax from 25% to 40%, corporate tax to these oil companies; secondly, there was no change in the royalty, 7.5%; and thirdly in the case of those two companies that you mentioned, Cabinet insisted, and they have agreed, to make 10% of their entire share capital available to the Belizean public."
Jules Vasquez,
But that's a standard feature, the question is why is there such a variance between what was in the Cabinet paper that Minister Briceno submitted and...
Rt. Hon. Said Musa,
"I am telling you what the Cabinet decided. Cabinet in its wisdom decided to go this way."
Jules Vasquez,
But why would we agree to a BNE type contract post the discovery of oil? The BNE contract was framed in the context of a country that having oil and so many dry wells.
Rt. Hon. Said Musa,
"Well you're asking a rhetorical question by way of criticism and I am answering it how the Cabinet decided."
Jules Vasquez,
But Sir its so clearly against...
Rt. Hon. Said Musa,
"You're getting into commentary now man."
Jules Vasquez,
But sir clearly a proposal was made for something that envisioned a far larger production share.
Rt. Hon. Said Musa,
"Well first of all we are assuming that oil will be found in these areas."
Jules Vasquez,
But it's next to a oil producing block.
Rt. Hon. Said Musa,
"Well that doesn't mean anything. They have also drilled a well by Georgeville, much closer to Spanish Lookout, and they found no oil. It's a risky venture."
Jules Vasquez,
But sir is this not decidedly against the national interest?
Rt. Hon. Said Musa,
"No I don't believe so. I don't believe it's against the national interest. I honestly, sincerely do not believe that it's against the national interest and the Cabinet supported the decision that the Minister took."
Jules Vasquez,
What do you make of the former Minister's statement that he would not support it...
Rt. Hon. Said Musa,
"I don't think anything about that."
After that encounter, the Prime Minister's tour moved on to Scotland Halfmoon and then to Rancho Dolores for a rally type event. Apart from Marin, the PM is also accompanied by Works Minister Mike Espat.
