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March 26, 2020

Coronavirus causes Bahamas Petroleum to further delay drilling

Exploration and production firm Bahamas Petroleum has again decided to delay the start of the drilling operations on its Perseverance #1 exploration well offshore Bahamas.

By Himaja Ganta

Exploration and production firm Bahamas Petroleum has decided to again delay the spudding of a well. This postponement of drilling operations is not the first for the Perseverance #1 exploration well offshore Bahamas.

The company said the decision was a result of the “massive, unprecedented and adverse” impact of the Covid-19 coronavirus.

Bahamas Petroleum will delay the drilling of its planned Perseverance #1 to October this year. It previously anticipated spudding the well in May/June.

The company said it has notified the government of the Bahamas of the epidemic as a force majeure event. This would grant the company an extension of its license equal to the length of the epidemic.

In January, the company announced its plan to drill the Perseverance #1 well from April this year.

Bahamas Petroleum CEO Simon Potter said: “Our primary objective is safe operations, best delivered by the ability to drill uninterrupted by external events for the period of the drill plan.

“Given the ever-evolving adverse impact of the response to the spread of the Covid-19 virus – which is changing daily and is affecting everyone and all enterprises, around the globe – it has become clear to us that if we continue to push forward with drilling in the first half of 2020, safe and responsible operations would be compromised.

Meanwhile, global deaths from Covid-19 virus have crossed 19,656, while about 111,877 are reported to have recovered from the virus. The confirmed case total stands at 438,441.

Around 20% of the world’s population is under lockdown, keeping oil demand low.

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