Report: Cuba boosts oil, gas production slightly

Cuba’s crude oil production saw an increase in 2010, rising to 52,623 b/d from the 47,517 b/d produced in 2009, according to a recent study of the Caribbean nation’s oil and gas industry.

“This new production was predominantly as a result of new record breaking 6,000 m horizontal drilling coastal prospects around the town of Camarioca, east of the beach resort of Varadero in Matanzas province,” said the report’s author, Jorge R. Pinon, a research fellow with the Cuban Research Institute at Florida International University.

State-owned Cubapetroleo SA’s (Cupet) gross working interest in 2010 was 31,419 b/d, while Canada’s Sherritt International’s gross working interest was 21,204 b/d, according to the report.

Estimates of oil in place for Cuba’s northern oil province range from 1-2 billion bbl, with recovery ratios of between 6-7% of OOIP determined by the viscosity of the oil and the permeability of the rocks.

According to Pinon, future production is expected to increase as a result of planned enhanced oil recovery projects between Cupet and Russia’s Zarubezhneft in Boca de Jaruco field.

Meanwhile, the report states that associated natural gas production seemed to be reaching a plateau of 38 bcf/year as a result of the maturity of the Varadero and Puerto Escondido oil fields.

Cuba saw its associated gas production increase by more than 40%, from 26 bcf in 2005, as a result of its Energas joint venture with Sherritt.

Demand down

Cuba’s oil demand has been on the decline over the last 5 years primarily as a result of conservation efforts and increases in fuel and electricity prices reflecting international market conditions.

In 2010, oil demand of 137,025 b/d reflected a decrease from the 2009 demand level of 139,651 b/d, the report states.

More than 65% of total demand, or 89,868 b/d, was met by high-sulfur residual fuel oil/crude oil blend, which is used as boiler fuel for the electric power industry, as well as the steel, mining, and cement industries.

At 26,453 b/d, diesel represented the second-largest petroleum demand product, used by the commercial land transport and rail industries.

Motor gasoline consumption stood at just 6,184 b/d, representing the lack of a private-sector vehicle fleet.

Cuba’s Havana and Santiago de Cuba refineries continue to run intermittently, each averaging about 22,000 b/d, well down from their respective boiler plate capacities of 100,000 b/d.

The revamped, Russian-built 65,000 b/d Cienfuegos refinery, today a nearly equal joint venture of Cupet and Venezuela’s Petroleos de Venezuela SA, ran 55,295 b/d in 2010 compared with 57,316 b/d in 2009.

The Cienfuegos refinery is in a hydroskimming configuration with a reformer, but with two naphta and distillate hydrotreating units, which have not been revamped and are not operating—rendering substandard diesel and gasoline, according to regional specifications.

Cuba imported a total of 113,000 b/d of refined products and oil from Venezuela in 2010 compared with 112,000 b/d in 2009, according to the 2010 financial reports of PDVSA.

Imports of Venezuela’s refined products—including aviation fuel, LPG, lubricant base stock, diesel, and fuel oil—amounted to about 14,000 b/d in 2010 up nearly 60% from about 9,000 b/d in 2009. Venezuela’s Mesa 30 crude oil imports amounted to 99,000 b/d in 2010 from 103,000 b/d in 2009.

Most of Cuba’s Venezuelan petroleum import volumes of 93,000 b/d arrive under terms of the Convenio Integral de Cooperacion Economica (Caribe)—a barter agreement with subsidized payment terms signed by both countries in October 2000.

The report states that 20,000 b/d of Cuba’s total imports of Venezuela’s oil represent PDVSA-Caribe equity tolling volumes which are exported to regional and West African markets via tenders to international oil trading companies.

Two years ago, Venezuela asserted plans to invest $10 billion in downstream projects in Cuba by 2015 through a unit of PDVSA working with Cupet. But with oil prices low, however, there were questions whether all or any of the projects would be funded (OGJ Online, May 4, 2009).

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

EPP kills plans for Bakken-to-Cushing crude oil pipeline

12/15/2014 Enterprise Products Partners LP (EPP) has elected not to proceed with development of its proposed crude oil pipeline that would have extended 1,200...

Woodside to buy Apache’s interests in Wheatstone, Kitimat LNG for $2.75 billion

12/15/2014 Woodside Petroleum Ltd. has agreed to acquire interest in the Wheatstone LNG and Kitimat LNG projects, respectively in Western Australia and Britis...

Gas agreement seen firming China-Russia energy ties

12/15/2014 A Nov. 9 framework agreement for another large gas-supply deal between OAO Gazprom and China National Petroleum Corp. remains far from concluded bu...

Falling prices may pose new test for China oil policies, speakers say

12/15/2014 China, which successfully revised its oil strategy in response to new technologies since 2008, could face fresh tests if prices stay low for a prol...

Watching Government: Russia: On the ropes?

12/15/2014 Russia's Dec. 1 cancellation of its South Stream natural gas pipeline was not surprising. European nations have signaled for years that they intend...

ExxonMobil forecasts 35% higher world energy demand by 2040

12/15/2014 A significantly bigger global middle class, expanded emerging economies, and 2 billion more people will contribute to 35% higher world energy deman...

API: Producers reducing methane emissions already

12/15/2014 US oil and gas producers are reducing wellhead methane emissions already and don't need ill-conceived, overly prescriptive federal regulations, Ame...

West Cornwall Township hears from Sunoco Logistics

12/12/2014

Sunoco Logistics Partners outlined its safety systems during a West Cornwall Township meeting in Pennsylvania on Nov. 10.

ETP eyes larger capacity for planned Bakken pipe

12/12/2014 Energy Transfer Partners LP has launched a binding expansion open season to boost capacity on a planned pipeline system that would move oil from th...

White Papers

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Available Webcasts



The Future of US Refining

When Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST



On Demand

Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST


Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected