The two exploration blocks, Carlisle Bay and Bimshire, are located approximately 40km southeast of the country, in water depths ranging from 1,200m to 2,000m.

BHP Billiton exploration vice-president Niall McCormack said: "Signing the exploration licences marks our first steps into exploration in Barbadian waters."

The company will start the first three-year phase, including a 2D seismic survey, upon receiving environmental clearances from the Barbados Government

Based on the results of the second phase, a three-year second phase will be undertaken to conduct a 3D seismic survey, followed by an optional two-year third phase to drill exploration wells.

Barbados Prime Minister’s Office Minister Senator Darcy Boyce said: "These licences will provide long-term benefits to the Barbadian people and BHP Billiton shareholders alike.

"Should exploration efforts bear fruit the Barbados National Oil Company will have an opportunity to participate in the resulting production and the Government will receive royalty and tax payments.

"BHP Billiton’s activities will also create local employment opportunities."

 

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