Grenada's natural oil and gas resources could be controlled by Mainland China based on the agreement signed in 1996 between the Keith Mitchell-led New National Party (NNP) government and U.S investor, Jack Grynberg.
Industry sources told GRENADA TODAY that since the deal was struck, Grynberg has entered into agreements with a state-owned Chinese company to get involved in his projects in the Eastern Caribbean including Grenada.
A top industry source declined to comment on whether there might be a link between the decision taken by Beijing to help the Mitchell government rebuild the multi-million dollar stadium at Queen's Park and China's alleged control of the island's potential oil and gas wealth.
Grynberg has since filed court actions against the Mitchell government for breach of contract.
One of the actions was filed before an arbitration court in London against the Grenada government for allegedly failing to honour the terms and conditions of the agreement.
The other matter is against Deputy Prime Minister and Minister of Agriculture and Energy, Gregory Bowen for allegedly demanding bribery money to get the contract. Grynberg is seeking $US500 million in damages.
The senior government minister has denied the charges and announved plans to file his own counter-suit against the american investor.
As a public service, GRENADA TODAY reproduces an article that appeared October 2005 in a leading oil industry publication known as Petroleumworld on the Grenada/Grynberg/China oil connection:
New York -- Shanghai Offshore Oil Group, an affiliate of state China National Offshore Oil Corp, has emerged as the 50% owner and operator of 31.4-mil acres of Caribbean exploration territory, in what could be one of China's largest foreign upstream exploration ventures.
The farm-in of the five concessions, stretching from Grenada, just north of Trinidad, to St. Vincent and the Grenadines, Saint Lucia, Martinique and Guadeloupe, could be one of China's largest foreign upstream exploration ventures.
The positions had been assembled by maverick Denver wildcatter Jack Grynberg and his private RSM Production.
Grynberg signed the farmout documents in Shanghai.
Estimated outlays to explore the mostly undrilled acreage, covering 127,000 sq miles, are upwards of $2-bil, said a source close to the deal.
RSM is believed to be "carried" for part of its 50% share, with the rest to be funded with cash flow from RSM's current 25,000 boe/d of net US onshore oil and gas production, rising next year to 35,000 boe/d, he said.
Grynberg is to operate the concessions through further seismic acquisition, due to resume soon using a Chinese vessel, the companies said.
SOOG will nominally operate during the drilling phase. But with its limited track record in upstream operations, speculation is that the Shanghai refining and product marketing company will turn over effective control to CNOOC.
RSM has already accumulated 9,512 km of 2-d seismic and will run another 12,000 to 14,000 km by mid 2006, to be followed by an electromagnetic survey of eight to 12" specific and most prolific prospects". Drilling by SOOG is slated to start in the second half of 2006.
Grynberg told Platts he also has talks scheduled with CNOOC, Sinopec and possibly CNPC to farm out a 25% operator stake in a 55,500 sq km exploration concession in the Central African Republic, where RSM has already farmed out up to 25% to Canadian independent United Reef Ltd.
The CAR track is adjacent to Chad's Doba basin production and stretches to within 100 km of Sudan, where CNPC is a major producer.
Grynberg, noted for promoting initial Western oil ventures in Kazakhstan in the late 1980s and for waging massive litigation against US pipelines over natural gas pricing, began assembling his Caribbean acreage in 1996 with a first-ever offshore concession for Grenada.
To resolve stalled boundary disputes with Venezuela and Trinidad, he launched his own legal actions. RSM also holds an exploration tract in Belize.
Now in his mid-70s, Grynberg seems determined to see production from his large acreage position.
"I don't want to wait forever," he told Platts in 2003.
