KINGSTON, Jamaica (JIS) – Science, Technology, Energy and Mining Minister Phillip Paulwell, says the ministry is in the final stages of negotiation with a major oil and gas company, to explore another section of the island to determine the potential for commercial oil and gas.

Paulwell informed that negotiations with that company are scheduled to  end sometime in March, at which point a licence will be granted for exploration of the South East section of the island.

Currently, Tullow Jamaica Limited is conducting exploratory work on the south coast of the island, which has been identified in the past as having good frontiers for exploration.

Meanwhile, Finance Minister Dr Peter Phillips, said that the hedging against oil price increases will continue and emphasised that  this is necessary, “so that we do not suffer irreparable damage to our balance of payments account or stymie or reverse our economic growth…because of any sharp upward movement in the price of oil.”

On March 12 last year, the Minister  announced the  imposition of an additional specific Special Consumption Tax (SCT) of $7 per litre to be imposed on petrol, in order to pay for the hedge.

“The hedge is an insurance policy for the country and for the consumer against the prospect of a possible sharp upward movement in the price of oil,” the minister had said.