Recent news suggests that the island of Grenada may now become the newest hydrocarbon-producing nation in the Caribbean region. A wildcat exploration well, called Nutmeg 2, was spudded by Global Petroleum Group (GPG), a little-known Russian company in late June. The well, located in about 400 feet of water near to Grenada’s maritime boundary with Venezuela, was drilled using the Transoceanowned semi-submersible Development Driller III.
After a series of industry rumours, the Grenada government has confirmed the discovery of natural gas close to the country’s border with Venezuela. However, it said it is still awaiting the results of tests to determine whether the gas is of a quality the island could benefit from financially. At present, the commercial viability of the find has not been disclosed.
It was earlier this year that the government disclosed that it had issued a license to the Russian-based Global Petroleum Group to conduct the necessary exploration activities to locate oil and natural gas within the island's territorial waters. In June 2017, Parliament approved the Hydro Carbon Exploration Incentive Bill 2017, outlining a package of incentives for oil and gas exploration to any company.