• Submitted by: manso
• Business and Economy
• 04 / 28 / 2011

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Jeremy Cresswell. Aberdeen Press and Journal. Cuba's Ministry of Basic Industry (MINBAS) says that the first of five deepwater exploration wells planned for the Cuban sector of the Gulf of Mexico is to spud this summer.

It will be drilled as soon as Saipem's new Scarabeo 9 semi-submersible rig arrives from the Far East. The basic unit was built by Yantai Raffles in China and transferred to Singapore for completion.

Manuel Marreno, the ministry's oil sector director, told attendees at the Fourth International Earth Science Convention in Havana that the wells will be drilled between 2011 and 2013 in water depths ranging from 400-1,500m.

He indicated that various foreign oil companies had committed to working with state-owned Cupet during the campaign.

While Marreno did not name the companies involved, Spanish group Repsol has a three-year sub-let of the Scarabeo 9 from its Italian owner, ergo it will drill at least the first of the five wells planned.

In fact, Repsol is working in consortium with Norway's Statoil and ONGC of India. If the first well is a success, a second is likely to follow immediately.

Repsol last drilled offshore Cuba in 2004. However, its Yamagua-1 discovery made on the N27 offshore block in the Strait of Florida was deemed non-commercial.

Other companies planning Cuban deepwater wells include Petronas and, reportedly, PDVSA.

While some say that Cuba has 5-9billion barrels of oil locked up in the rocks beneath its deepwater aquatory, another view is that 20billion is a more likely figure.

Last summer, the Cubans were apparently planning a seven-well programme rather than the five currently slated.

According to MINBAS, Cuban territorial waters cover an area of 112,000sq km and are divided into 59 blocks, more than a third of which have been contracted to foreign companies.

Near neighbour, the US, is deeply concerned that any drilling incident could quickly lead to pollution of Florida holiday resorts, as Cuba is 90 miles from the American coastline.

Despite the Obama administration's pledge to re-examine the relationship between Havana and Washington, the 48-year embargo against the Cubans remains in place, with little apparent sign of it being removed.

And yet the Americans lease land bordering Cuba's Guantanamo Bay where they house terror suspects in prisoner of war conditions.

President Obama has yet to move towards closing the highly controversial facility, despite claiming he would do so during his ultimately successful presidential campaign.

The US oil & gas supply chain is keen to see a resolution to the Cuban tensions, as it stands to win lucrative business on the back of any drilling successes.

2011 Aberdeen Journals Ltd. Wire News provided by www.pennenergy.com/index/articles/newsdisplay/1406606124.html