On Monday, Australian-based Melbana Energy announced that its 2026 work plan for Block 9 in Cuba will remain officially suspended until the end of the year. This information was disclosed in their quarterly activities report, released on October 26, 2026, on the Australian Securities Exchange.
The report, covering the quarter that ended on September 30, states that operations in Block 9 were limited to care and maintenance activities, with no environmental, safety, or health incidents reported.
"The 2026 work program has been formally suspended until the end of 2026, and there are no pending work commitments under Block 9's PSC," the report states.
From a regulatory standpoint, Melbana continues to monitor changes in Cuba's legal framework to assess potential improvements in operational efficiency. "Several changes implemented or announced by the Cuban government are being evaluated to determine if there are opportunities to enhance operational efficiency," the document specifies.
Melbana is also examining the impact of the designation of CUPET, its contractual partner, as a sanctioned entity by the U.S. Department of State in June this year.
Melbana Energy, formerly known as MEO Australia, is an independent oil and gas exploration company based in Sydney and listed on the Australian stock market. Its primary asset in Cuba is Block 9, spanning about 2,344 square kilometers on the island's northern coast, approximately 140 kilometers east of Havana. According to consultancy McDaniel & Associates, the area has an estimated geological potential of 15.7 billion barrels of oil in place, although these figures represent geological potential rather than proven reserves.
The development of Block 9 is considered a strategically important oil project for the Cuban government due to its production potential and economic activity. Nonetheless, Melbana's published commercial plans involve exporting the extracted crude, which means its eventual exploitation wouldn't necessarily increase the fuel available for domestic consumption.
"Melbana is in the final stages of formalizing a joint marketing and sales agreement with all parties involved in Block 9 to export 100% of the production," the report outlines. The suspension of activities delays any progress toward this goal, while Cuban authorities are yet to approve the transfer of a 70% stake previously held by Sonangol to the Australian company.
Cuba's current oil production ranges between 30,500 and 40,000 barrels per day, compared to a demand of 90,000 to 110,000 barrels daily. Since the capture of Nicolás Maduro, Venezuela has ceased supplying fuel to Cuba. Mexico hasn't delivered any oil since January, and the last Russian tanker arrived in March. Block 9 is among the few active onshore exploration ventures that could help mitigate the structural deficit.
Financially, the transfer of Sonangol's 70% stake, lost due to non-compliance, is still awaiting Cuban regulatory approval, with no defined timeline.
"The transfer is contingent upon receiving Cuban regulatory approvals," warns the report. During the quarter, Melbana received 14.5 million Australian dollars from its former partner, with 3.2 million directed to accrued interest and the remainder to outstanding capital calls. The company still claims an additional 22.7 million Australian dollars gross.
At the end of the quarter, Melbana had 14.0 million Australian dollars in cash. The company ceased direct participation in Block 9 in June after CUPET was designated an SDN entity under Executive Order 14404, signed by President Trump. Since then, cost control has been prioritized during the period of reduced activity, according to the report.
In October, the Cuban regime approved Decree 184, regulating the new oil and gas law, which opens exploration to private companies and micro, small, and medium enterprises (MSMEs) with concessions lasting up to 30 years. Melbana is assessing whether these changes provide a pathway to resume activity, though the official suspension is currently set through the end of 2026.
FAQs on Melbana Energy's Operations in Cuba
Why is Melbana Energy's Block 9 project in Cuba suspended?
The project is formally suspended as part of Melbana Energy's decision to limit operations to care and maintenance activities without any pending work commitments under the PSC for Block 9.
What is the estimated oil potential of Block 9 in Cuba?
Block 9 has an estimated geological potential of 15.7 billion barrels of oil in place, according to McDaniel & Associates, though these are not proven reserves.
How is Cuba's oil production affected by international relations?
Cuba's oil production is impacted by the lack of imports from traditional partners like Venezuela and Mexico, and the limited exploration projects like Block 9 that could potentially alleviate the oil deficit.