Cuba appears to have its first oil discovery since 1999, a heavy but lower sulfur accumulation along its northern coast.
Operational specifics were scarce in Cuban and world press reports attributed to President Fidel Castro in late December 2004. Castro announced the Santa Cruz discovery in closed-door session of the national assembly, but parts of it were made public in Cuban media.
Fortunately, Pebercan Inc., Montreal, operator of Block 7, with 55% working interest, and Sherritt International Corp., Toronto, with 45% interest, issued statements.
Both companies said they will begin appraisal this year, but only Castro said that the discovery contained as much as 100 million bbl of recoverable oil. Pebercan said the accumulation could be as large as 20 sq km.
The crude oil, which Sherritt confirmed to be 18° gravity, was "a higher grade of oil than that producedUon the Canasi and Seboruco fields" due to having less than 5% sulfur.
Two appraisal wells are to be drilled in the first half of 2005, Pebercan said. Santa Cruz lies just off the coast about 33 miles east of Havana. Associated gas was reported at the discovery, the first since Canasi field just to the east in 1999.
Santa Cruz discovery
Sherritt said the Santa Cruz 100 well flowed 1,300 b/d of oil on a 1/2-in. choke. No geological details were given.
Drilled from shore, the well bore totals 4 km in length and extends 3 km into the bay and penetrated three reservoirs, press reports said.
Maurel & Prom, Paris, which holds an interest in Block 7 through a partial holding in Pebercan, said 3D seismic data had identified several prospects along the coast. Sherritt planned to drill two of those, Guanabo and Tarara, in 2005, and the Matanzas onshore prospect in a later year.
At least one source said the new field could not begin producing until 2006, presumably because this would require construction of a production facility to treat the oil.
Pebercan said it was drilling the Seboruco 15 and 103 development wells and planned to spud Seboruco 9 in early January 2005.
Sherritt and Pebercan hold five concessions in northern Cuba totaling 6,155 sq km but have drilled only on Block 7. All production is sold to the Cuban government.
Sherritt noted that it is the largest foreign oil producer in Cuba and has developed extensive expertise in complex fold and thrust belt geology and directional drilling.
