The Dominican Republic has taken a significant stride toward energy diversification and security with the signing of a production-sharing contract between the Ministry of Energy and Mines (MEM) and the Global Min consortium. This agreement, awarded through the First Oil Round, grants rights to explore and eventually produce hydrocarbons in Blocks CB1 and CB2 of the Cibao Basin, located in the provinces of Montecristi, Dajabón, Valverde, Puerto Plata, and Santiago de los Caballeros. The move is poised to reshape the country’s energy landscape and could serve as a model for sustainable resource development in the region.
The contract, signed by Minister of Energy and Mines Joel Santos and Félix Manuel Santana Reyes of the Global Min consortium, is pending approval by the National Congress. It establishes an eleven-year concession for exploration and exploitation phases, with the consortium assuming all risks, costs, and investments. This arrangement ensures that the Dominican State can allocate fiscal resources elsewhere while benefiting from modern and efficient practices in the development of the awarded blocks.
Minister Santos expressed optimism about the project, highlighting its potential to confirm the country’s energy potential and lay the foundations for greater energy independence and security. The State is set to receive a minimum share of 43% of total oil revenue, along with direct and indirect job creation, technical training programs for youth, and community development initiatives. The contract also includes strict provisions for environmental protection and industrial safety, ensuring compliance with international sustainability standards.
“Respect for the environment and sustainable development are fundamental pillars of our policy. The Global Min consortium will embrace this commitment at every stage of the project,” Santos stated, underscoring the government’s commitment to responsible resource development.
Santana Reyes, representing the consortium, expressed appreciation for the trust placed in their business group. “Onshore exploration is a costly process that requires years of diligent work to map potential resources and identify economically recoverable hydrocarbons. We are pleased to partner with the Dominican Republic and appreciate the trust placed in us to help the country manage the development of its energy potential,” he said.
This development could have far-reaching implications for the Dominican Republic’s energy sector. The successful exploration and production of hydrocarbons in the Cibao Basin could attract further investment and expertise, fostering the growth of a national oil and gas industry. The Ministry of Energy and Mines has already announced plans to launch the Second Oil Round in 2026, with new available areas that will expand investment opportunities and strengthen the country’s energy security.
Moreover, the project’s focus on sustainability and social responsibility could set a new standard for resource development in the region. By prioritizing environmental protection, industrial safety, and community development, the Dominican Republic is demonstrating that economic growth and sustainability can go hand in hand.
The Global Min consortium, formed by the Dominican company Global.Min and the American company Lumina Geophysical, brings a wealth of experience and cutting-edge technology to the project. Their commitment to sustainability, industrial safety, and social responsibility aligns with the Dominican Republic’s vision for a responsible and prosperous energy future.
As the project moves forward, it will be crucial to monitor its progress and impact. The successful exploration and production of hydrocarbons in the Cibao Basin could not only bolster the Dominican Republic’s energy security but also serve as a testament to the potential of sustainable resource development in the region. The coming years will be pivotal in shaping the future of the Dominican Republic’s energy sector and its role in the global energy landscape.