CATEGORIZED | News

Cuba, experienced partners ready for deepwater responsibilities

Posted on 24 May 2011

Cuba intends to develop deepwater prospects in the 112,000-sq-km Cuban Exclusive Economic Zone in the Gulf of Mexico. It is divided into 59 2,000-sq-km blocks; the average water depth is 1,400 meters.

Cuba intends to develop deepwater prospects in the 112,000-sq-km Cuban Exclusive Economic Zone in the Gulf of Mexico. It is divided into 59 2,000-sq-km blocks; the average water depth is 1,400 meters.

“Companies active today in Cuba are very well experienced from the stewardship point of view,” professor Jorge Pinon of Florida International University said at the 2011 IADC Environmental Conference & Exhibition held 12-13 May in Port of Spain, Trinidad. “Let me assure you that whether it’s Petronas, ONGC or others, they do have a track record of how to behave.”

“Also, the Cubans know a lot more than we think the Cubans know. They have partnered themselves with a group of companies that are seasoned in deepwater operations,” he said.

Working first in conjunction with Repsol, ONGC and Statoil, Cuba will begin drilling a commercial deepwater well this year to be followed by six additional deepwater wells, according to Cubapetroleo, the Cuban national oil company. Cubapetroleo has drilled approximately 400 wells off the Cuban coastline, these being drilled directionally from land rigs. The deepwater aspect of the drilling program is what’s new.

Hydrocarbon activity in Cuba dates back to before 1881, when a natural naphtha field was discovered near the city of Motembo in the central part of the country. Naphtha is a liquid used as a solvent for various chemical industries. Limited exploration took place up to 1960 and resulted in the discovery of a few small oil fields. With the formation of Cubapetroleo, exploration activity increased. The largest field, Varadero, located in the North Cuban Heavy Oil Belt, has estimated in-place reserves of about 3 billion barrels, according to Cubapetroleo.

Since 1999, numerous directional wells have been drilled close to shore and achieved production of more than 1,500 bbl/day and in some cases up to 5,000 bbl/day.

Cuba today produces a little over 50,000 bbl/day of liquids, both crude oil and natural gas liquids (NGLs). Demand for oil in the country is about 140,000 bbl/day, and approximately 90,000 to 100,000 bbl/day of crude is imported, according to Mr Pinon. The James Baker Institute predicts that within 15-20 years Cuba may double its consumption of oil to 300,000 bbl/day, driven mostly by demand for fuel oil.

“Many people fail to realize that Cuba’s production today is heavy oil between 8° and 12° API,” Mr Pinon said. “The recovery factor is less than 10%.”

The deepwater prize is located in the 112,000 kilometers Cuban Exclusive Economic Zone (EEZ) in the Gulf of Mexico (GOM), which was opened to foreign investment in 2000. It is divided into 59 2,000-sq-km blocks; the average water depth is 1,400 meters. A total of seven companies are now involved in the deepwater EEZ, with 24 blocks under contract. Saipem’s Scarabeo 9 semisubmersible rig is set to  drill all of the deepwater wells.

The start of the deepwater initiative began in summer 2004 when the first exploration well in the deepwater area, Yamagua-1, was drilled in 1,660 meters of water to a depth of 3,410 meters.

The United States Geological Survey estimate of 5 billion bbl of undiscovered liquid reserves, primarily in the North Cuba thrust belt, does not include the Eastern Gap area of deepwater reserves, according to Mr Pinon. There are estimates that the Eastern Gap area and the area just below it, the further northwest GOM, could have 5 to 10 billion bbl of additional undiscovered reserves.

Leave a Reply

*

FEATURED MICROSITES


Recent Drilling News

  • 30 July 2014

    Fugro’s DeepData pod provides data for deepwater riser monitoring

    Fugro has delivered a motion dataset from the BOP stack and lower riser of two deepwater wells in the Barents Sea using its DeepData pods. The DeepData pods...

  • 28 July 2014

    SDI completes 500th MagTraC MWD Ranging project

    Scientific Drilling International (SDI) has completed the 500th MagTraC MWD Ranging project. MagTraC was introduced in 1998 to target challenging applications...

  • 28 July 2014

    Modular offshore rig design reduces deployment costs

    William Jacob Management (WJM) has introduced an offshore rig design that reduces deployment costs and improves speed-to-market for upstream operations. The 3,000-hp...

  • 23 July 2014

    Halliburton promotes Jeff Miller to President

    Halliburton has promoted Jeff Miller to President and has appointed him to the Halliburton Board of Directors effective 1 August 2014. Mr Miller is currently the...

  • 23 July 2014

    Statoil resumes production on Njord A platform

    Statoil has resumed oil and gas production on the Njord A platform in the Norwegian Sea, after a major reinforcement of the platform structure. Production had been shut down...

  • Read more news