18 May 2012

CUBA / SPAIN : Dry Hole! Repsol Comes Up Empty On 1st Test Well.

http://www.reuters.com/article/2012/05/18/us-cuba-oil-idUSBRE84H0XJ20120518


     One exploratory well down...and 2 to go.
     President Raul Castro is hoping...and desperately needs...much better results from the 2 remaining wells to be drilled off Cuba's coast...in its deep Gulf waters.
     Some estimate that Cuba could have 5-10 billion bbls of oil off its shores.
     Currently...the cash hungry island relies on cancer ridden Venezuelan President Hugo Chavez for $3 billion in oil subsidies annually.
     The first dry hole using the giant and costly Scarabeo 9 drilling rig (foto) was about 4,500 meters deep...and some 20-31 miles from the isla's coast.
     Spain's Repsol says it will plug the well and abandon it.
     It's more bad...and expensive news...for Madrid's Repsol.
     It cost Repsol $100-150 million usd to sink the dry hole.
     An oil expert said:  "“It's a bust. It doesn't mean there's not oil out there (in Cuba's offshore), but it looks like they missed the reservoir."
     Drilling for a second exploratory well begins soon...100 miles west of the first dud hole... under a Malaysian (Petronas) and Russian (Gazprom) partnership.