Company Denies Reports of Oil Find in Jamaica

The UK-based company which holds an active oil exploration licence for Jamaica, says there’s no truth to claims that it has found billions of barrels of oil in Jamaican waters.

The company, United Oil and Gas, has been compelled to respond to the rumours which have spread like wildfire on social media.

The licence held by United Oil and Gas, formerly Tullow Oil, covers 22,400 square kilometers along the entire south coast of the island, as far outward as the Pedro Cays.

In a statement posted on its website on Tuesday, United said it has noted the recent rumours regarding its Walton Morant licence.

However, the company says it has drilled no extraction wells in the licence area and therefore no commercial oil or gas discovery has been made.

The company says its 2024 work programme is focused on conducting piston core sampling, which aims to detect any oil residue before considering future exploration drilling targets.

United’s Chief Executive Officer, Brian Larkin, says the Walton-Morant Licence is a vast exploration area containing numerous promising prospects.

He says the company is committed to improving its understanding of the resource potential within the area and will continue working to secure a strategic partner to unlock that potential.

United’s comments follow a statement from energy minister, Daryl Vaz, rubbishing claims that oil has been discovered in Jamaican waters.

The claims were apparently fuelled by an investor’s presentation on the company’s website.

The presentation, dated May 23, outlined the company’s prospects under the licence. It says exploratory wells have shown evidence of hydrocarbons, which are the basis of crude oil, natural gas, and coal.

The report also says numerous seeps have been identified and sampled.

What does it all mean?

According to United, the evidence points to the potential for a world-class seven billion barrels of oil. If realised, the find would be directly comparable to the scale of the Stabroek Guyana resource, which has 11 billion barrels.

It would propel Jamaica to 16th in the world, above established producers like Brazil, Norway, Mexico, Colombia, and Ecuador.

Minister Vaz says he would be the first to make the announcement.

United has until January 2026 to inform the Government of Jamaica if it will drill or drop the licence.