2.500
%
Positive
11
mm boe
69
%
Barbados has suffered from a lack of investment due to difficulty in establishing its in-country potential and a less competitive licensing regime than its neighbours. The government has now relaunched offshore licensing through the 2026 Direct Negotiations, offering 19 blocks under an amended Offshore Petroleum Act with a carried state interest of up to 20%, and six companies applied to pre-qualify. Whether that converts into signed licences and drilling remains to be seen. Outlook amended from Neutral because offshore licensing has been relaunched through the 2026 Direct Negotiations and drew six pre-qualification applicants. Outlook: Positive. Risk premia raised from 0.625% to 2.5%.
October 11, 2026
Caribbean
mm bbl
bcf
Caribbean, island in the North Atlantic Ocean, northeast of Venezuela.
Concession
Concession fiscal regime with royalty, corporate income tax and an additional profits tax. The State-owned Barbados National Oil Company (BNOC) is guaranteed a maximum share of 25% in any license so long as it chooses to do so prior to the exploration license being awarded. The State’s interest is carried until a declaration of commerciality.
Barbados is a stable Commonwealth democracy under Prime Minister Mia Mottley, whose Barbados Labour Party again won all 30 seats in the February 2026 election. It became a republic in 2021 and has stabilised its public finances through IMF-backed economic recovery programmes. US and UK guidance describe a transparent legal system and an investor-friendly climate, constrained by high costs, a small market and climate vulnerability. Hydrocarbon output is limited to small onshore production by the state-owned BNOCL; the 2026 Offshore Direct Negotiations offer 19 blocks and drew six pre-qualification applicants, while the government targets 100% renewable power by 2030.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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