Melbana Energy Limited, an Australian company managing oil extraction operations in the town of Martí, Matanzas, is poised to carry out its inaugural export of Cuban oil by the end of June this year. This development was revealed in a report on Wednesday, May 14. The oil extracted from the Alameda-2 well, noted for its "high quality," has seen an increase in volume, with over 15,000 barrels currently in storage. The first shipment is anticipated by late June, as stated in the announcement.
"Alameda-2 has been producing oil at a controlled pace since mid-April," the report highlighted, adding that all necessary permits, inventories, and equipment have been secured, and civil works at Amistad-2, the first well in Block 9 designed to maximize production, have been completed. The oil from Alameda-2, lighter than the typical oil found in the region, will be shipped in June as part of an initial "test" export.
Andrew Purcell, the executive chairman of Melbana Energy, noted that at the current rate of production, they will have "sufficient oil for the first test shipment next month." He further explained, "The outcomes of this exercise, combined with the next production well, Amistad-2—which is the first well designed to maximize output from the entire Unit 1B formation—bring us a significant step closer to securing financing for our field development plan, with a final investment decision expected by year's end."
Before being stored, the oil undergoes an "in-situ primary separation" process. It is then transported by road approximately 50 kilometers to Cuba Petroleum (CUPET) facilities for final processing and storage. This entire procedure requires minimal staffing, which helps reduce operational costs, according to Melbana's statement.
While the potential buyer of the oil was not disclosed, the company indicated that the interested party is "considering the timing and availability of a suitable coastal tanker or the option to combine the cargo with upcoming scheduled larger crude oil exports."
Melbana is also planning to drill two additional wells, one of which is situated 850 meters southwest of Alameda 2. Access roads have been constructed, and all necessary material permits have been obtained to start drilling. This exclusive oil-producing well in Unit 1B is expected to take less than three weeks to drill completely. Testing and completion will follow.
The Australian firm began exploratory drilling in Cuba several years ago, even as the country faced worsening power outages that continue to impact residential areas. Melbana Energy is among the few foreign companies operating in Cuba. In 2018, it announced that the Cuban authorities had approved its continued drilling plans, in line with local and community regulations concerning land use and potential environmental impacts.
The company, listed on the Australian Stock Exchange and headquartered in Sydney, maintains satellite offices in Melbourne, Havana, and Varadero. In 2015, it secured rights to drill in an area known as Block 9, managed by the state-owned Cuban company CUPET, where it's estimated that up to 141 million barrels of oil could be produced.
Frequently Asked Questions about Melbana Energy's Oil Export from Matanzas
What is the quality of the oil extracted from Alameda-2?
The oil extracted from the Alameda-2 well is considered to be of high quality, and it is lighter than the oil typically found in the region.
When is the first shipment of Cuban oil expected?
The first shipment of Cuban oil is anticipated to take place by the end of June, as part of an initial test export.
What measures has Melbana Energy taken to ensure efficient operations?
Melbana Energy has minimized staffing requirements and completed necessary civil works and equipment installations to ensure cost-effective and efficient oil extraction and transportation processes.
Where is Melbana Energy planning to drill additional wells?
Melbana Energy plans to drill two additional wells, one located 850 meters southwest of the Alameda-2 well, as part of their expansion efforts in the area.