NASSAU, BAHAMAS — Attorney General Carl Bethel has announced that should commercial quantities of oil be found in The Bahamas, the royalty regime will be renegotiated and the funds will be directed to the Consolidated Fund and the Sovereign Wealth Fund for the benefit of the Bahamian people.
Bethel underscored this move would only take place if the government approves the extraction of any oil found.
According to Bethel, the government consulted the Commonwealth Secretariat in 2019 on the royalty regime with the Bahamas Petroleum Company (BPC) and was advised it did not meet the standard.
He said the PLP left the amount at 12 percent on a sliding scale up to a maximum of 25 percent on the net selling price should commercial quantities of oil be found.
In the Senate today, the attorney general said the PLP government was advised of the global standard, “yet the rates stayed in 2015…”.
“Again Madam President, this raises questions…” Bethel said.
Bethel furthered it was “erroneous” for the Progressive Liberal Party (PLP) to suggest that its previous administration improved upon a deal for the BPC to drill for oil in The Bahamas.