Diapositiva 1

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U.S.-CUBA ENERGY CONFERENCE
CURRENT STATUS OF EXPLORATION-PRODUCTION
ACTIVITIES IN CUBA
FEBRUARY 2, 2006
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CUBA THE KEY OF THE GULF OF
MEXICO
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Major Petroleum Producing Trends. Gulf of Mexico
Basin
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Western Cuba Oils in the framework of the Gulf of
Mexico
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CUBAN PETROLEUM PROVINCES
WEST NORTHERN CUBAN PROVINCE THE MOST
PROSPECTIVE AREA
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HYDROCARBON SUMMARY WESTERN CUBA
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OPENING TO FOREIGN
INVESTMENT IN
THE CUBAN OIL INDUSTRY

• SINCE 1991 CUBA HAS ADOPTED A POLICY OF
  ENCOURAGING FOREIGN INVESTMENT IN KEY SECTORS OF
  THE ECONOMY.
• IN 1992 THE CONSTITUTION WAS MODIFIED IN ORDER TO
  ESTABLISH THE ACKNOWLEDGEMENT OF THE OWNERSHIP OF
  SOCIETIES, JOINT ENTERPRISES AND ECONOMIC
  ASSOCIATIONS
• CONSTITUTED ACCORDING TO THE LAW.
• IN 1995 THE NATIONAL ASSEMBLY APPROVED THE LAW OF
  THE
• FOREIGN INVESTMENT, WHICH OFFERS VERY
  ATTRACTIVE AND
• FLEXIBLE TERMS AND PROVIDES ALL THE USUAL
  GUARANTEES
• FOR FOREIGN INVESTMENT IN CUBA.
• THE LAW OF FOREIGN INVESTMENT (No.77) IS THE MAIN
  LEGAL FRAMEWORK FOR PETROLEUM CONTRACTS

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ONLAND AND SHALLOW WATERS PRODUCTION SHARING
CONTRACTS
AVAILABLE BLOCKS
BLOCKS ALREADY UNDER CONTRACTS
NON OFFERED AREAS
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MAIN RESULTS OF COOPERATION WITH OIL AND
SERVICES FOREIGN COMPANIES

• THE PRODUCTION OF CRUDE OIL HAS BEEN INCREASED
  SEVEN TIMES
• UTILIZATION OF ASSOCIATED GAS IN THE ECONOMY
• INTRODUCTION OF ADVANCE TECHONOLOGY AND
  MODERNIZATION OF EP INFRASTRUCTURE
• EXIT TO DEEP WATERS EXPLORATION IN THE GULF OF
  MEXICO
• TRAINING OF CUBAN PERSONAL

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PETROLEUM INFRASTRUCTURE

• Cubapetroleo (Cupet)
• Exploration - Production
  Marketing
• Refinery Lubricants
  Distribution
  
• Services
  Domestic gas supply
• Research Enginering
  Export-Import
• 
  

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INTRODUCTION OF ADVANCED TECHNOLOGIES
HORIZONTAL DRILLING.. 5-6 times increase of
production levels
PUMPING IMPROVEMENT Productivity increase of
2-3 times per well
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UTILIZATION OF ASSOCIATED NATURAL GAS
Generation of electricity and supply
domestic gas to Havana
PIPELINES CONSTRUCTION
CONSTRUCTION OF OIL GAS TREATMENT PLANTS
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Northern Cuba Heavy Oil Belt.

• LENGTH 200 Km
• WIDTH 5 - 15 Km
• DEPTH 0.8 - 3.0 Km
• AVERAGE SATURATE THICKNESS 300 m
• OIL RESOURCES IN PLACE 40 - 50 X 10 9 BARRELS
• API GRAVITIES 10 - 20 API

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EXCLUSIVE ECONOMIC ZONE OF CUBA IN THE GULF OF
MEXICO
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CUBAN SECTOR IN THE GULF OF MEXICO
USA
- CUBA
MARINE BOUNDARY
MEXICO - CUBA MARINE BOUNDARY
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Location Of Seismic Surveys
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OFFSHORE DEEP WATERS BLOCKS
CARIBBEAN SEA
BLOCKS CONTRATED
BLOCKS CONTRATED
BLOCKS UNDER NEGOTIATION
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Tectonic Setting of the EEZ of Cuba and
surrounding areas.
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Tectonic Sketch Southwestern (Yucatan) Sector of
Cuban Economic Exclusive Zone.
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Seismic Line 145
NW

SE
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Seismic Line 135
NW

SE
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Seismic image of line 115 (Yucatan Sector).
NW
SE
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AVAILABLE GEOLOGICAL AND GEOPHYSICAL DATA

• MORE THAN 15000 KM OF 2D SEISMIC LINES
  ( ONSHORE WESTERN CUBA AND DEEP OFFSHORE )
• MORE THAN 20000 KM2 OF AEROMAGNETIC AND GRAVITY
  SURVEYS.

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GEOLOGICAL AND GEOPHYSICAL DATA (2 )

• MORE THAN 70 DEEP WELLS IN WESTERN CUBA, BAHAMAS,
  SOUTHEASTERN MEXICO AND FLORIDA (WITH MORE OVER
  3000M DEPTH EACH ).
• 8 SITES (LEG 77) DSDP INSIDE THE CUBAN SECTOR IN
  THE GULF OF MEXICO
• AVAILABLE DATA PACKAGES BY SPECIALITIES AND ALSO
  SPECIAL TECHNICAL REPORTS

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TECHNICAL AND ENVIROMENTAL REGULATIONS

• ACCORDING TO THE LAW , THE REGULATORY BODY FOR
  EXPLOITATION OF MINERALS, THE NATIONAL OFFICE OF
  MINERAL RESOURCES , HAS ISSUED TECHNICAL
  REGULATIONS FOR EXPLORATION PRODUCTION
  ACTIVITIES , WHICH ARE MANDATORY FOR CUBAN AND
  FOREIGN COMPANIES
• THE AGENCY FOR PROTECTION OF ENVIROMENT ,
  ACCORDING TO THE LAW No 81 AND ITS DIFFERENT
  LEGAL REGULATIONS, EXERCES THE ENVIROMENT CONTROL
  OF ALL OIL OPERATIONS ,ONLAND AND OFFSHORE.

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BENEFITS OF THIS NEW BUSINESS OPPORTUNITY IN THE
GULF OF MEXICO

• AN ACTIVE PETROLEUM SYSTEM IN THIS PROLIFIC OIL
  MEGAPROVINCE OF THE GULF OF MEXICO . IT IS
  POSSIBLE TO DISCOVER BIG OIL /GAS FIELDS IN THIS
  112 000 KM2 OFFSHORE AREA .
• THE CUBAN SECTOR IN THE GULF OF MEXICO IS VERY
  CLOSE TO MATURE OIL ZONES ( TECHNOLOGY, SUPPLIES
  AND MARKET ).
• VERY ATTRACTIVE CONTRACTUAL CONDITIONS AND TOTAL
  SUPPORT OF THE GOVERNMENT OF CUBA.

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MAIN CONCLUSIONS FOR EP ACTIVITIES

• CUBA IS JUST DEVELOPING ITS EXPLORATION AND
  PRODUCTION ACTIVITIES WITH SUCCESS IN
  COOPERATION WITH FOREIGN OIL COMPANIES.
• WHY U.S. OIL COMPANIES COULD NOT PARTICIPATE
  IN THE VERY CLOSE DEEP WATERS HIGH POTENTIAL NEW
  FRONTIER IN GoM?
• THE GROWING EP CUBAN ONLAND AND OFFSHORE
  ACTIVITIES DEMANDS A LOT OF SUPPLIES AND
  SERVICES.WHY NOT ALSO FROM U.S.?

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GOOD OPPORTUNITY

• U.S. OIL ,SUPPLIES AND SERVICES COMPANIES,
• ARE INVITED TO PARTICIPATE IN
• THE EMERGING CUBAN PETROLEUM INDUSTRY
• ON THE BASE OF MUTUAL RESPECT AND BENEFITS