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Aruba Explores Diversifying Its Economy Beyond Tourism By Tapping Into The Potential Of Petroleum

Aruba Explores Diversifying Its Economy Beyond Tourism By Tapping Into The Potential Of Petroleum

Prime Minister Evelyn Wever-Croes: Aruba’s First Petroleum Exploration Contract with Armstrong International LLC & Gas Exploration VBA

Prime Minister Evelyn Wever-Croes recently attended the signing ceremony of the contract between the Aruban Petroleum Company (CAP) and Andicuri Oil & Gas Exploration VBA (AOGX), a local subsidiary of Armstrong International LLC (“AI”), for the exploration, development, and production of hydrocarbons in Aruba’s maritime area.

Aruba’s Potential in Petroleum Exploration

The Prime Minister highlighted the significance of this partnership, emphasizing the potential it holds for diversifying Aruba’s economy beyond its reliance on tourism. With Armstrong’s impressive track record in exploration, having discovered substantial oil fields in the past, the company’s interest in Aruba’s offshore resources underscores the potential wealth of petroleum and gas in the region.

Over the next 18 months, Armstrong plans to gather more data and commence drilling operations to assess the viability of extraction. Should they succeed, it would not only mark a significant economic opportunity for Aruba but also contribute to job creation, particularly for young professionals in the field of petroleum studies.

Government’s Strategic Economic Diversification

Prime Minister Wever-Croes stressed the importance of economic diversification for Aruba’s resilience and stability. By expanding into the energy sector, the government aims to strengthen the country’s economic foundation, reducing dependency on any single industry. This contract, while entailing no financial burden for the government, ensures revenue through taxes paid by Andicuri and an annual sum of $375,000 to the Aruban Petroleum Company for exploration activities.

Optimism and Caution

While expressing cautious optimism, the Prime Minister acknowledged past unsuccessful attempts at finding petroleum reserves. However, with Armstrong’s commitment to covering the costs of exploration, Aruba stands to gain significantly if oil and gas are discovered. This potential discovery could serve as a new economic pillar, providing both employment opportunities and financial stability for the country.

Gratitude and Outlook

Prime Minister Wever-Croes extended her gratitude to Minister Glenbert Croes for his vision and determination, the Aruban Petroleum Company for their collaboration, and Mr. Armstrong of Armstrong International LLC (“AI”) for believing in Aruba’s potential. With this landmark agreement, Aruba takes its first steps into the realm of petroleum exploration, paving the way for a more diversified and resilient economy.

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