United Oil, the British company licensed to explore for oil and gas off Jamaica’s south coast, has proposed the potential for Jamaica to engage in aluminium production if commercial quantities of hydrocarbons are discovered. This proposition was presented to potential partners during an investor evening last week, as part of the company’s strategy to secure funding for drilling the estimated seven billion barrels of oil believed to be in Jamaican waters.
The company suggested that the oil and gas, if found, could be utilized for in-country refinement of raw bauxite ore and the export of higher-value aluminium products. United Oil and Gas highlighted that Jamaica’s bauxite industry has the highest energy demand of any sector in the country, making it a prime target for the sale of oil and gas. This could potentially rejuvenate the bauxite sector, which has faced significant downturns over the past two decades.
According to the Jamaica Bauxite Institute, bauxite production in 2023 was just over 6 million tonnes, down from 10 million tonnes in 2018 and 15 million tonnes in 2006. Currently, Jamaica exports raw bauxite ore and alumina for processing into aluminium in other countries. United Oil and Gas’s plan could shift this dynamic, leading to in-country processing.
Besides targeting the bauxite sector, United Oil and Gas envisions Jamaica becoming a “regional hub for energy distribution to the wider Caribbean and beyond.”
United Oil and Gas entered the Jamaican market in 2017 through a partnership with Tullow Oil Plc, acquiring a 20% equity stake before fully acquiring the licence in 2020. The company has until January 2026 to decide whether to proceed with drilling or abandon the licence but indicated it plans to decide by January 2028. The exploration area, the Walton-Morant block, spans the entire length of Jamaica’s south coast and is about twice the size of the island.
United Oil and Gas presented evidence of an active hydrocarbon system with oil and gas seeps both inland and offshore, particularly off the coast of St Elizabeth and Westmoreland. The company believes the potential yield from these fields could exceed one million barrels of oil per day.
Currently, United Oil and Gas has identified 21 leads with prospects for seven billion barrels of oil. Additional leads from previous exploration suggest almost five billion more barrels could be present, pushing the total potential close to 12 billion barrels. If these estimates are realized, Jamaica would rank 16th in the world for oil reserves, surpassing established producers like Brazil, Norway, Mexico, Colombia, and Ecuador.