Friday, June 29, 2012

Venezuela to join in oil exploration off Cuba, plans to invest $40 million, official says

Venezuela to join in oil exploration off Cuba, plans to invest $40
million, official says
By Associated Press, Friday, June 29, 2:48 AM

CARACAS, Venezuela — Venezuela's national oil company will join in
exploratory drilling for crude in deep waters off Cuba, the company's
president said Thursday.

State-run Petroleos de Venezuela SA, or PDVSA, is next in line to drill
after Malaysia's Petronas completes its work, said Rafael Ramirez,
Venezuela's oil minister and president of the company. He said Venezuela
has budgeted an estimated $40 million for the project.

Spanish oil company Repsol said last month that it would stop searching
for oil off Cuba after hitting a dry well drilled at a cost of more than
$100 million.

"Repsol unfortunately didn't have success in its well," Ramirez said,
"but that same platform is being used among all the companies that are
participating there."

He said Repsol had encountered some problems with the drill but that
seismic data has shown "good prospects" in the area off Cuba.

Venezuelan President Hugo Chavez is a close ally of Cuba and sends oil
to the island under a long-running deal that allows the Cuban government
to pay through the services of doctors, nurses and others who work in
the South American country.

Petronas has said it expects to have results of its exploratory drilling
by the end of July. It holds rights to explore an area in the Florida
Straits known as the Northbelt Thrust.

PDVSA was granted an option to drill next in a different zone as the
huge Scarabeo-9 platform is rotated among the companies. The platform
was built in Asia with less than 10 percent U.S.-made parts, making it
uniquely suited to be used by companies without risking sanctions under
the U.S. trade embargo against Cuba.

"Now drilling corresponds to Petronas, and we come immediately after
that, but in another block, our block," Ramirez said. "If it's
successful, if it's quick, we aren't going to let the platform be idle.
We'll immediately take it."

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