Photo: BG Group
Honduras’ government has given Britain’s BG Group a four-year environmental license for an oil and gas block in the country’s Caribbean region.
The license grants BG Group the right to carry out exploratory drilling for at least four years off the coast of the jungle region of La Mosquitia, which borders Nicaragua.
The contract signed in 2012 establishes that the British company will pay taxes to the Honduran government during the exploration phase and fund social development in communities located near the drilling site.
The government has not indicated the amount of the tax nor how much the company will invest.
The block covers 35,246 sq. kilometers (13,600 sq. miles) and accounts for 15 percent of the country’s total area with hydrocarbon potential, according to official reports.
The contract establishes that BG Group must return 50 percent of that area to Honduras within a maximum of four years so the government can negotiate with another company.
BG Group’s vice president and legal representative, Carlos Quintana, told reporters the exploration work would begin next week.
BG Group, which was founded in 1997 and operates in 25 countries in Asia, Africa, Oceania and the Americas, is the only company authorized to explore for hydrocarbons in Honduras, according to official information.