Jamaica could begin drilling for oil off the coast of St Thomas as early as late 2027 or early 2028 in a potentially US$840-million offshore venture, following encouraging evidence of hydrocarbons in seabed soil samples. The findings have renewed interest from major international drilling companies and investors, but Energy Minister Daryl Vaz is urging caution, stressing that while scientists have detected traces of hydrocarbons, “they haven’t seen or touched the real deal” and a commercially viable oil discovery has yet to be confirmed.
The geo-chemical survey was conducted by independent oil company United Oil and Gas, which identified hydrocarbons in offshore soil samples, a key scientific indicator that petroleum deposits could exist beneath the seabed. Vaz described the results as “very positive” from a scientific standpoint, while making clear that Jamaica remains several steps away from actual oil production. The Government is now looking to international partners to help finance the next phase of exploration.
The scale of the potential venture is significant. A single offshore well is estimated to cost between US$60 million and US$80 million, with at least 14 wells potentially required. That puts the projected drilling investment at roughly US$840 million to US$1.12 billion if 14 wells are ultimately pursued. Vaz said United Oil and Gas has already begun approaching potential investors and major drilling companies, noting that firms that showed little interest a year ago are now responding to the opportunity.
However, any drilling programme remains subject to environmental and social impact assessments, stakeholder consultations and Cabinet approval. United Oil and Gas currently holds an exploration licence, meaning further negotiations with the Jamaican Government would be required before a drilling agreement could be finalised. For now, Jamaica’s offshore oil prospects remain promising but unproven, with late 2027 or early 2028 emerging as the earliest potential window for drilling.
