PM Barrow Says that If Oil Is Found Then Teachers Will Receive Salary Increase But Oil Company Says "NO OIL NO DE!"

On February 1st, after a massive teacher’s demonstration in Belmopan, the Prime Minister of Belize met with leaders of the Public Service Union, Belize National Teachers Union and the Association of Public Service Senior Managers in order to reach to an agreement as it pertains to the salary dispute. During the meeting there was a breakthrough and presently union leaders are selling Governments proposal to their union members. The task; however, has proven to be quit tedious since all indications are that members, especially those of the BTNU are not satisfied with the proposal since it contains too many ifs. For context here is what the Dean Barrow Administration proposed to the Union Leaders.

Dean Barrow Prime Minister Of Belize

“But whether or not there will be salary increases will depend on the performance of government’s recurrent revenue. In other words, this year that is ending 2012/2013, when we see what the recurrent revenue figure is, we will use that as a benchmark and then in 2014/2015, if there is an increase in government’s revenue collection—if the recurrent revenue goes up over the benchmark year—fifty percent of the extra revenue collected will go to the teachers and public officers by way of a raise. Why fifty percent? Because that is the current ratio of salaries to recurrent revenue.” 

The statement can only be interpreted in one manner; teachers will get their salary increase if there is a growth of recurrent revenue or mainly if a significant amount of oil is found. And if Government has their hopes placed on that second option, then we can safely say tonight there is no telling when and if a substantial amount of oil will be found. 

On September 5th of last year a huge oil rig arrived in Belize for oil exploration to commence in the community of Blue Creek in the Orange Walk District. The drilling, conducted by Big Creek Energy who partnered with New World Oil and Gas to conduct the multi-million dollar project, commenced on September 28th with the drilling of the Blue Creek #2 well targeting the B Crest prospect. The company estimated the B Crest to hold a P50 un-risked prospective resource of 92.1 million barrels of oil and a P50 un-risked net present value of US$2.4 billion on a 100% working interest basis. 

News today; however, indicates that shares plummeted last week as the Blue Creek 2 well was determined to be non-commercial. The well did; however, confirm that an active hydrocarbon system exists within the acreage, and live oil shows were measured in both the Y3 and Hillbank reservoir targets. The company will now move on to drill the next well in the programme which is the Rio Bravo 1 well on the West of Gallon Jug. Drilling is expected to get underway on the Rio Bravo 1 well in the current quarter. The West Gallon Jug Crest prospect has estimated un-risked prospective resources of 113 million barrels of oil.