Approval given to look for oil in Dominican Republic

[Dolores]

The Chamber of Deputies has modified legislation concerning the exploration, exploitation, and earnings from oil discovered in the Dominican Republic. For years, the dream has been to find oil on the island of Hispaniola, but little has happened.

This new legal framework will tend to provide incentives for foreign companies to come into the Dominican Republic and look for hydrocarbons, either on shore or off shore.

The new legal verbiage concedes the same privileges granted to Dominican companies to any foreign company that wishes to explore for hydrocarbons in the national territory.

According to studies by the Dominican Oil Refinery (Refidomsa), there are maybe 543 million barrels of oil under the Dominican Republic, but only 13.68% is recoverable.

However, the quality of this recoverable oil has not been well studied to determine if it is worth the effort to...

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[PJT]

News stories about oil exploration arrive each year around this time. There is oil under the DR surface. The government uses this bait to sell rights to territories to oil wildcatters. Extruding oil from under the RD is dependent on the high costs of bringing it to the surface. Is it worth the effort? It seems it has not been worthwhile for the wildcatters based upon the lack of news of successful oil recovery from previous years sails.

Regards,

PJT