Cuban oil surveys progressing
MEO Australia Ltd. views Cuba as a core component of its portfolio.
By Daniel J. Graeber | Aug. 15, 2016 at 6:47 AM
MELBOURNE, Aug. 15 (UPI) -- A study assessing the resource potential for
parts of Cuba is progressing as planned and quickly becoming a key
portfolio component, MEO Australia said.
The Australian company said it was expecting the results of an
assessment from two parts of its Block 9 production sharing contract in
Cuba during the fourth quarter. Work is already underway to lay the
groundwork for a drilling program there.
CEO Peter Stickland said in a statement Cuba is quickly emerging as an
integral part of the company's portfolio.
"Given the huge resource potential we identified in the first of the
three play types on Block 9, we are looking forward to seeing the
results of the assessment of the remaining two plays," he said.
According to MEO, Cuba produces about 80,000 barrels of oil per day.
Estimates from the U.S. Geological Survey last year found there were
about 4.6 billion barrels of crude oil and 9.8 trillion cubic feet of
natural gas in the form of undiscovered, technically recoverable,
reserves in Cuba. About three quarters of that is said to be located
within 50 miles from shore.
MEO said it estimated that Block 9, located along the northern coast of
Cuba, holds around 8 billion barrels of oil in place and has the
potential to produce nearly 400 million barrels.
The U.S. government in 2014 started easing a 54-year trade embargo on
Cuba and later reopened its embassy in Havana, restoring formal
diplomatic ties. The same year, the Cuban government enacted legislation
offering corporate tax credits to encourage foreign investments.
Cuba-focused and London-based investor Leni Gas Cuba took a 15.8 percent
stake in MEO Australia in exchange for $1.4 million to support an
exploration program covering 900 square miles of an oil exploration
block near the coast of Cuba in February.
Source: More studies developing for Cuban oil - UPI.com -