Repsol plans to expand oil exploration in Cuban waters
From
Americaeconómica.com Read Spanish Version
Repsol
YPF plans to expand oil exploration this year along Cuba’s northern
coast, on the Gulf of Mexico. Sources close to the company told
Americaeconomica.com that, although the exploration is not part of
the company’s strategic plan, its potential is being evaluated.
The
Spanish-Argentine company conducted soundings in the area in 2004,
along with Cupet, Cuba’s state-owned oil company. The results were
positive; high-quality reserves were found, but did not have the
viability necessary to begin commercial exploitation. So far, this is
the only material proof of the existence of oil in deep waters.
The
United States Geological Service estimates that the reserves in the
area could be as much as 9.3 billion barrels of oil, although Cuban
geologists are more optimistic and calculate reserves of 20 billion
barrels, according to Cupet’s exploration director, Rafael Tenreyro.
Future.
Even so, the future of Cuban oil, especially maritime oil, is far
from being clearly defined. The island can boast of having
successfully began the first "horizontal" drilling in its
history, in northern waters. One of the most remarkable aspects of
the operation is that it was carried out by Cuban workers trained in
Canada. Right now, no assistance is being provided by foreign
companies; the island’s authorities recently cancelled the oil
exploration contract they had signed with Canadian company Pebercan,
linked to the Sherrit consortium.
Tasks.
Cupet has already hinted that it expects to conclude its exploration
this year, although the absence of foreign professionals and the lack
of a marine platform will complicate the task. Cuba does not wish to
risk losing the battle for the Gulf of Mexico to the major U.S. oil
companies. The Mexican government risks falling behind Shell and
Stone Energy, which expect to complete the Perdido project in the
Gulf of Mexico in 2010.
Verification
of the results of this new project will take some time. At this time,
ground-extracted oil continues to be Cuba’s main hope for energy.
Discovery.
Early this month, Repsol YPF, in a consortium with other
international oil companies, announced the discovery of a large oil
field in U.S. waters of the Gulf of Mexico, which may have important
quantities of high-quality, light-and-sweet oil. The company states
that in the past three years it has significantly reinforced its
present in the region, which is considered to be one of the world’s
most profitable deep-water areas, with great exploratory potential.
According
to Repsol, this area offers an attractive and stable fiscal regime
that, historically, has provided one of the largest capital returns
in the offshore oil industry.
AméricaEconómica.com
is a Madrid-based digital publication, devoted to the economic issues
of our continent.
