Melbana Energy Ltd, an Australian company based in Sydney, has acknowledged its ongoing difficulties in exporting oil from Cuba's northern coast due to port issues, power outages, and challenging logistical conditions. Initially, the company announced plans to ship its first oil cargo by late June, but now aims to conduct a trial export by the end of the year, as reported by Diario de Cuba.
Currently, over 30,000 barrels of oil are in storage while the company progresses with drilling at the Amistad-2 well. This well is expected to boost production and gather enough inventory to fill larger capacity vessels. However, Melbana has had to adjust its timeline due to electricity instability in Cuba, which forced the diversion of its main rig to a gas well to support power generation.
In 2023, the independent firm discovered higher-quality oil in a well located in Martí, Matanzas Province, as noted by the specialized site Upstream Online at the time.
Operational Challenges and Partnerships
Melbana holds the rights to operate in Block 9, a 2,344 km² area in Cuba's northwest oil belt between Havana and Varadero, where 99% of the country's reserves are concentrated. The company has a 30% stake in this block, with the remaining 70% controlled by Angola's state-owned Sonangol.
Energy Market in Turmoil
Cuban oil contributes to approximately 44% of the nation’s energy needs, with associated gas providing an additional 8%, according to figures from Diario de Cuba, which closely follows the energy sector. Nonetheless, Cuba is grappling with one of its worst energy crises, experiencing power outages exceeding 20 hours daily in several provinces and heavily relying on shipments from Venezuela, Mexico, and sporadic purchases from other markets.
Melbana’s ambition to expand its production in Block 9 faces an uncertain landscape, where domestic logistical challenges, insufficient port infrastructure, and the national electrical crisis hinder the transformation of Cuban oil into a viable export business.
Challenges Facing Cuban Oil Exportation
What are the main obstacles Melbana Energy is facing in exporting Cuban oil?
Melbana Energy is dealing with port issues, power outages, and difficult logistical conditions, which have delayed its oil export plans from Cuba.
How has the energy crisis in Cuba affected the oil export plans?
Cuba's severe energy crisis, marked by extended power outages and a reliance on foreign energy shipments, has complicated Melbana's efforts to establish a stable oil export operation.
What is Melbana Energy's strategy for overcoming these export challenges?
Melbana plans to conduct a trial export by the end of the year and is working on increasing production and inventory to facilitate larger shipments when feasible.