Kingston, Jamaica — Energy Minister Daryl Vaz on Tuesday delivered a measured update in Parliament on offshore oil exploration activities involving United Oil & Gas Plc, urging caution while acknowledging encouraging scientific findings.
Addressing lawmakers, Vaz confirmed that preliminary exploration work in the Walton-Morant Basin has identified traces of hydrocarbons, specifically C4 and C5 gases such as butane and pentane. While these findings point to the possible existence of a petroleum system offshore Jamaica, the minister emphasised that they do not constitute proof of commercially viable oil reserves.
“This is a positive indication, but we have not yet seen or confirmed any discovery of oil in commercial quantities,” Vaz told the House, tempering growing public speculation about a potential oil boom.
The presentation marks one of the most substantive updates to date on Jamaica’s offshore exploration efforts, which have been ongoing under a licence agreement with United Oil & Gas. The company has completed early-stage technical studies, including seismic analysis and geochemical surveys, as part of its exploration programme.
However, Vaz underscored that the project remains in its infancy. The next critical phase will involve securing a major international partner to finance and undertake exploratory drilling—an undertaking that could cost between US$60 million and US$80 million for a single well.
“Exploration drilling is the only way to definitively determine whether recoverable oil exists,” Vaz noted, adding that no such drilling can proceed without the requisite environmental approvals, regulatory clearances, and Cabinet consent.
Even under optimistic scenarios, the minister indicated that drilling activity is unlikely to commence before 2027 or 2028, placing any potential production timeline even further into the future.
The update comes amid heightened public interest in Jamaica’s energy prospects, with some commentators speculating that offshore discoveries could significantly transform the country’s economic outlook. Vaz, however, cautioned against premature expectations, stressing that oil exploration is inherently high-risk and uncertain.
“There is still a long road ahead,” he said. “What we have now is encouraging data—not a discovery.”
The government has maintained that it will continue to pursue energy diversification strategies while supporting responsible exploration efforts. Officials say any future development will be guided by environmental safeguards and aimed at ensuring that Jamaicans derive maximum benefit from the country’s natural resources.
As discussions continue, the focus now shifts to whether United Oil & Gas can attract the investment and technical capacity needed to move the project into its next, more ambitious phase.
