North America: Cuba

Aug. 2001 Vol. 222 No. 8 International Outlook NORTH AMERICA Cuba The government put 59 offshore blocks up for bidding last fall, in an area located mostly to the

Aug. 2001 Vol. 222 No. 8
International Outlook

NORTH AMERICA

Cuba

The government put 59 offshore blocks up for bidding last fall, in an area located mostly to the north and west of the island nation. Each block occupies about 770 sq mi (2,000 sq km). Contracts are of a PSC type, and interested parties can bid at any time; there is no closing date. Last year, in preparation for the sale, CGG acquired 4,536 mi (7,300 km) of 2-D seismic and reprocessed some vintage 2-D data. A total of about 1,554 mi (2,500 km) of 2-D seismic and 347 sq mi (900 sq km) of 3-D seismic will be shot this year. Repsol-YPF has been awarded six of the blocks and will begin acquiring seismic this year.

Petrobrás and Canadian partner Sherritt International drilled a 13,200-ft TD duster with their Felipe 1X wildcat. The well was located in Block L, offshore north-central Cuba. One dry hole was apparently enough for Petrobrás, which now says that it will cease its Cuban exploration program.

Sherritt continued development of its Canasi discovery. Canasi 3, completed in February, is an 11,970-ft MD, horizontal producer. Testing indicated production rates of about 2,500 bopd. Due to the sale of Maurel & Prom’s interests, Pebercan now owns 60% of the rights to Canasi and 55% of the remainder of Block 7. Total Block 7 production now exceeds 6,500 bopd. Pebercan and partner Sherritt will spud Canasi 4 this year. According to Dr. Manuel Marrero, senior petroleum advisor at the Ministry of Basic Industry, about 26 onshore wells will be drilled this year, compared with 24 last year and 19 in 1999. Well depths average 7,800 ft.

The country is beginning to lay infrastructure to utilize its expanding gas production (all is associated and flared) that currently stands at 53 MMcfd. Two pipelines totaling 270 mi – one oil and one gas – are under construction.

In recent months, oil production has soared to 70,000 bpd, which is roughly 40% of demand. The 60% that is imported comes chiefly from Venezuela under favorable terms. This year, Cuba expects to produce an average 68,500 bopd, a 43% increase from 2000. Basic Industry Minister Marcos Portal credited participation of foreign firms with the increase.