0.625
%
Neutral
24
mm boe
69
%
Barbados has suffered from a lack of investment due to difficulties in understanding the scale of the potential in country. This, coupled with a difficult licencing regime in comparison to other areas, has meant that the country has not needed to amend or revisit the tax regime. There has been precious little updated on the delayed 2022 offshore round, but officials remain committed to undertaking a licensing round imminently. Consequently, the outlook remains unchanged.
January 1, 2024
Caribbean
mm bbl
bcf
Caribbean, island in the North Atlantic Ocean, northeast of Venezuela.
Concession
Concession fiscal regime with royalty, corporate income tax and an additional profits tax. The State-owned Barbados National Oil Company (BNOC) is guaranteed a maximum share of 25% in any license so long as it chooses to do so prior to the exploration license being awarded. The State’s interest is carried until a declaration of commerciality.
Barbados is the largest economy in the Eastern Caribbean. The Barbados Economic Recovery and Transformation (BERT) program aims to decrease the debt to GDP ratio, strengthen the balance of payments, and stimulate growth in the economy. While the government met its IMF targets, the program dampened income and spending power due to public sector layoffs, the introduction of new indirect taxes, and a decline in the construction sector.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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