US company to dig exploratory oil well off Caribbean Coast

The US oil company Noble Energy, which was granted a concession in 2009, will begin drilling its first deep water exploratory well in the Caribbean coastal waters of Nicaragua in August. The 3,000 meter well should be completed by the end of the year. Minister of Energy and Mines Emilio Rappaccioli, stated that the Nicaraguan government has confidence that the company, which expects to invest US$300 million in exploration in Nicaraguan waters, will have success. Under Nicaraguan law, the company will pay Nicaragua 15% of the gross production and a 3% tax to near-by municipalities for social projects. If the company finds sufficient oil or natural gas to be commercially viable, it will pay a 30% tax. Rappaccioli said that, if the existence of oil is confirmed, it is estimated that over 25 years the company could produce 500 million barrels for which it would pay the government US$17.5 billion. (Radio La Primerisima, June 25)

Taken from Nicaragua News, 2.7.13