OFFSHORE EXPLORATION YIELDS MORE FAILURE

August 7, 2012 - 9:11 CUBA

OFFSHORE EXPLORATION YIELDS MORE FAILURE

Economy and Politics

The Cuban state run company CUPET announced, yesterday, that an oil
exploration program by the Russo-Malaysian joint venture, Petronas
Gazpromneft, in the Gulf of Mexico, has resulted in the discovery of a
field devoid of commercial value. The geophysical study of the wells
showed the existence of active oil area, but it is in an overly rocky
zone that is too compact for significant oil and gas extraction, as
reported by CUPET to the official newspaper 'Granma'.

This is the second blow to Cuban hopes of finding oil after the
withdrawal of the Spanish company Repsol, which, together with the
Norwegian Statoil and Indian OVL, had decided, for similar reasons, to
give up offshore operations with the semi-submersible platform Scarabeo
-9 in the exclusive Economic Zone (EEZ) in Cuba last June.

A third attempt, in the same area, is planned by Petróleos de Venezuela,
SA (PDVSA). According to some studies, with an area of 112,000 square
km, the ZEE could have reserves of anywhere between 5 and 9 billion
barrels. Cuban authorities suggest that they might have as many as 20
billion barrels in which they have provided five areas of exploration in
deep water. In 2010, Cuba produced 21.4 million barrels of oil,
equivalent to 46% of the quantity it consumed. The rest, about 100,000
barrels a day, comes mainly from Venezuela in an exchange facilitated by
preferential tariffs.

[FB/BO]

http://www.misna.org/en/economy-and-politics/offshore-exploration-yields-more-failure-07-08-2012-813.html