$87 million probe for Panama oil, gas

1,409Views 2Comments Posted 05/04/2017

CONTRACTS with companies  from three countries  who will  spend $87 million to carry out seismic studies to test for gas or oil deposits off the coasts  of Panama, have been approved by the Cabinet Council.

The Secretariat of National Energy spent a year negotiating terms with interested companies and the contracts were awarded to Gx Techology Corporation (United States), Spectrum Geo, Inc. (Norway) and Geoex (England and U.S.).


"Conducting seismic surveys does not force the country in the future to explore and exploit reserves of oil and natural gas that might be found.

"This is a first step that only provides more information to the country. Although Panama has no proven reserves of hydrocarbons, in recent years there have been incipient advances in the study  of the subsoil and the maritime platform, so it can be affirmed that the possibilities for the presence of commercially exploitable accumulations are increasing, ” said, National Energy Secretary Victor Urrutia.

"Important findings in deep waters of the Colombian Caribbean, specifically in the border  area with Panama, confirm the oil potential. A country must have knowledge, in order to evaluate the benefits and risks of future exploration, "Urrutia added.

The companies will carry out geophysical studies 15 kilometers from the Panama  coast

Before being able to carry out explorations using ships, the companies must conduct environmental impact studies category II.

Spokesmen for the authority said that the three companies committed to invest $87 million in the studies

The State will not make any payment for the exploration.

The contracts do not allow exclusivity in any of the areas and have a duration of five years.

“The information generated will be the property of the Panamanian State " says a document outlining the contracts.