BG Group is to invest more than $20million in hunting for oil and gas off the coast of Honduras.
The British gas giant is expected to land an environmental licence today for an offshore block covering 35,000 square kilometres of the country’s Atlantic coast.
More than $20million will be invested in the first year’s worth of exploration, with a four year programme along the jungle coastline bordering Nicaragua.
Last May BG Group was given a four-year contract for exploring off Honduras – the first time such a deal had been issued by the country.
“If they give us the environmental license tomorrow, next week we will begin exploration work,” BG Group’s Carlos Quintana told a press conference.
The company has also secured drilling rights for at least 20 years on the block, with the Honduras government set to receive 15% of the extracted oil and gas while BG Group recoups its initial investment.
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