cuba traction

cuban update from upstreamonline

Adl

Anamaria Deduleasa

20 July 2015 07:59 GMT
LeniGas Cuba has acquired an initial 5% shareholding in Cuba-focused Petro Australis, which has rights in a production sharing contract covering the onshore Block 9, north-west Cuba.
The newcomer said that Block 9 has an existing petroleum exploration dataset of modern 2D seismic and multiple wells, and is “ontrend with, the multi-billion barrel Varadero oilfield”.
The field also contains the Motembo, the first major Cuban oilfield, which has historically produced 5.23 million barrels of very high quality oil to 1993, with an average API of 61 degrees, LeniGas said.
Australian E&P player Petro secured 40% of the 2380-square-kilometres block through MEO Australia in December 2014 when they announced their deal with Cuba Petroleo Union (CUPET).
The deal, which saw Melbourne-based MEO pick up a 100% interest in the initial contract, is still awaiting final regulatory approvals from the Cuban Government, however, Petro will have the option to take up its participating interest if it qualifies for operations in Cuba.
The 8.5-year exploration phase of the contract is split into four sub-periods, with withdrawal options at the end of each sub-period.
In the first 18 months of the exploration phase, MEO will evaluate the existing data covering the block to decide on whether more seismic needs to be carried out.