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 CUBA
South America
Cuba has produced minor oil since the 1880s but most
of its current production was discovered in the last 30 years by Cupet -
the national oil company.
 Several fields are located on the north coast east of
Havana. The largest, Varadero, was discovered in 1969 and now produces
most of Cuba’s production. Although containing over 1 Bn Bbls,
recoveries are low due to heavy oil and complex reservoirs, difficult to
image with seismic data.
In the centre of the island the Pina field was discovered
in 1989, also by Cupet, amongst a small group of fields found in the
1940s and 50s. Pina contains lighter oil and produces around 5% of
Cuba’s production. The reservoirs are also poor and complex.
 An oil-for-sugar barter agreement with the USSR, allowed
Cuba to export oil through the 1980s. In fact a new refinery and export
terminal were completed just before the breakup of the Soviet Union but
they never went into operation.
In the late 1980s foreign companies were invited to
explore and were presented with 3 options; offshore where seismic data
are good but no oil had been found; onshore to find overlooked
structures; or contracts to redevelop existing fields.
US companies were barred by the US to participate but
other Canadian and European companies were keen to invest. In 1990 Cupet
awarded an offshore permit to Total, the first granted to a foreign
company since 1958. Total found nothing and had left by 1995.
A number of other companies also invested onshore –
mostly Canadians, led by Sherritt - but most have now left following a
series of dry wells. Nevertheless, Cuban production growth has been
significant mainly through EOR activity on Varadero. Sherritt, with its
diverse interests in nickel and hotels, remains as the main operator
along with a French-financed but Canadian listed company called Pebercan.
Both companies now limit activity to redevelopment and
step-out drilling to increase recovery from existing fields. Cuba also
lies near to the Gulf of Mexico and since 1998 Cupet has been
encouraging investment in the deep waters.
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