The latest attempt to find oil and gas offshore Cuba has drawn a blank . . . at least so far.
Working with the brand new super-rig Scarabeo-9, Repsol’s first well drilled in the Cuban part of the Florida Strait (Gulf of Mexico) failed to find hydrocarbons since when the well has been plugged and abandoned.
Data obtained was studied and the upshot was that Repsol has suspended its plans to drill a second commitment well.
However, Petronas of Malaysia now has the use of Scarabeo-9 to explore an area in the Florida Straits known as the Northbelt Thrust, about 180km (110 miles) south-west of Repsol’s initial drill site. Drilling has started and will apparently complete during July. Quite what will happen after that is not clear as the rig was due to be handed back to Repsol.
PDVSA of Venezuela with Sonangol of Angola have options to drill next.
Repsol spokesman Kristian Rix said that the failed well was drilled at a location about 50km (30 miles) off Cuba’s northern coast, more or less on the boundary between the company’s N26 and N27 concessions. Rix said initially that it was too early to determine whether the company’s Cuban exploration programme would be called off or not. He added that it was not uncommon to “strike out” with offshore wells and that four out of five turned out to be dry.
The decision to cancel followed soon after.
The company committed to two wells and had chartered the Scarabeo 9 for both at a day rate of $500,000.
The latest attempt is Repsol’s second only exploration well offshore Cuba. In 2004, it drilled the Yamagua-1 probe on block N27 but maintained tight hole status other than to say that non-commercial hydrocarbons had been encountered.
According to Cuban media, the dud well cost the partners $100million.
Repsol operates six blocks off Cuba’s northern coast, N25, N26, N27, N28, N29, and N36, in which it holds 40% interest in partnership with Statoil, holding 30%, and Oil and Natural Gas Corporation (ONGC) of India with the remaining 30%.