Ross Sheil, Staff Reporter

Brazilian state oil company Petrobras is considering prospecting for oil off the coast of Jamaica.

Phillip Paulwell, Minister of Industry, Technology, Energy and Commerce, told The Gleaner, on returning from Brazil, that this was part of a deepening cooperation between the two countries in the energy industry.

"We are looking at something happening in the next 30 days," he said.

Currently, of the 20 offshore and four onshore blocks, each 2,500 square kilometres, eight offshore blocks are under licence.

These are split between two companies, Finder Exploration from Australia (five blocks) and Rainville Energy from Canada (three blocks).

Mr. Paulwell said Petrobras was examining the remaining blocks.

20 years of extraction rights

Under a standard exploration agreement offered to prospectors by the Petroleum Corporation of Jamaica (PCJ), Petrobras would be able to prospect for five years and, should it strike oil, would be allowed 20 years of extraction rights under a profit-sharing agreement that could see PCJ retain 12.5 per cent.

Following a renewal of a memorandum of understanding signed during Mr. Paulwell's trip to Brazil, he said Petrobras is also to give technical assistance on ethanol and bio-diesel, in particular bio-disesel made from castor oil plants.

"I think we should be seeing some experimental crops this time next year, and once that is successful then we could see the start of processing," he said, noting that castor oil was being considered.

At a private level, Brazilian company Coimex has invested in a 49 per cent stake in the Petrojam ethanol refinery.

Brazilian interests are also interested in the government-owned factories of the Sugar Company of Jamaica which are currently up for divestment.