Tuesday, May 29, 2012

Spain's Repsol halts Cuba oil exploration effort

Spain's Repsol halts Cuba oil exploration effort
May 29, 2012

MADRID—Spanish oil firm Repsol says it will stop looking for oil in Cuba
after hitting a dry well drilled at a cost of more than $100 million.

Repsol Chairman Antonio Brufau says the company decided not to make
another attempt but that the Petroliam Nasional Berhad oil (Petronas)
company from Malaysia is expected to start exploring for Cuban offshore
oil soon.

Industry experts have said Repsol YPF SA was under contract to drill a
second Cuban well but could get out of the deal by paying a penalty to
an Italian company that owns the drilling platform used for Repsol's well.

Brufau didn't mention the penalty Tuesday in his comments about Cuba,
which is desperate to strike oil amid economic hardship.


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