Oil exploration jointly conducted by Petroleos de Venezuela SA and state-owned Cupet (Cubapetroleo) of Cuba have finally paid off with a massive oil find at the Cuban coast. Cupet exploration manager Rafael Tenreyro Perez claimed that the company has doubled its earlier estimates to 20 bn barrels of oil reserves in its offshore fields.
Various companies have explored for oil in Cuba over the last 15 years including Venezuela’s state-run company, Petroleos de Venezuela SA. Cuba currently produces just 60,000 barrels per day and consumes about 150,000 barrels. However, the remaining 90,000 barrels came from Venezuela at preferential rates in exchange of services rendered in Venezuela by Cuban doctors.
According to the company, they would begin the drilling in the offshore wells much before the second quarter of next year. Perez stated the oil consortium headed by the Spanish company Repsol with the backing of China’s oil company and Sherritt International of Canada would start production as per the fixed timeframe.
A tripartite treaty which established in 1977 among Cuba, Mexico and the US determined the stake in oil reserves in the Gulf of Mexico by each party. However, according to recent estimates by the US Geological Survey (USGS), Cuba has oil reserves of about 9 bn barrels and 21 trillion cubic feet of natural gas. But Perez said if USCS had looked into the latest findings, would likely alter their estimate figures.
If the estimates are true, Cuba will be head to head with the US in oil reserves. The US is estimated to hold 21bn barrels and Mexico has reserves close to 12 bn. With the prospective oil reserves Cuba is expected overcome the prolonged financial crisis.