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Clarifying U.S. Capital Energy’s Permit to enter Sarstoon Temash National Park Print E-mail
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Thursday, 08 May 2014 00:00

The Ministry of Energy, Science & Technology and Public Utilities (MESTPU), which has oversight of petroleum operations in Belize through its Geology and Petroleum Department, is compelled to clarify the continued misstatements by the media regarding the scope of the permit issued to US Capital Energy Belize Ltd., (US Capital) by the Forest Department on April 30, 2013.

The permit issued to US Capital Energy Belize Ltd by the Forestry Department is a permit to enter the Sarstoon-Temash National Park for the purpose of conducting petroleum exploration drilling operations and not a permit to conduct drilling operations. It is the Ministry with responsibility for the Geology and Petroleum Department and not the Forest Department that issues permission, through legally binding Production Sharing Agreement (PSA), for oil exploration in Belize as specified in the Petroleum Act. The Government of Belize signed a PSA with US Capital on January 22, 2001 with two subsequent amendments. It is this PSA that grants permission to US Capital to conduct petroleum explorations throughout its concession area, inlcuding the Sarstoon-Temash National Park.

This PSA has not expired.

Furthermore, Honorable Madame Justice Arana, in her recent judgement in Claim No. 394 of 2013 SATIIM et al v. Attorney General et al., refused to squash the PSA signed between US Capital and Government of Belize. Consequently, the PSA is in full force and effect. 

Consulations are on-going and will continue with appropriate stakeholders. 

Last Updated on Thursday, 08 May 2014 15:44