Sherritt to shoot Cuba gulf blocks, export oil

Sherritt International Corp., Toronto, plans a $6 million 3D seismic survey on four Gulf of Mexico blocks off Cuba in the second quarter.

By OGJ editors
HOUSTON, Feb. 26 -- Sherritt International Corp., Toronto, plans a $6 million 3D seismic survey on four Gulf of Mexico blocks off Cuba in the second quarter.

The company also plans to export part of its Cuban North Coast heavy crude this year for the first time.

Sherritt holds Blocks 15, 23, 24, and 33 north of the western part of the island.

The eastern part of Block 15 abuts the boundary with US waters along the US Minerals Management Service Rankin and Dry Tortugas planning areas (see map, OGJ, Dec. 11, 2000, p. 42).

Block 15 is 145 miles west-southwest of Key West, Fla., and 130 miles west of Cuban Block 27, where Repsol-YPF SA drilled Yamagua-1 in 2004 to TD 3,410 m in 1,660 m of water. The well found evidence of oil generation and an excellent carbonate complex (OGJ Online, Oct. 12, 2005).

Sherritt recently said it averages 30,000 b/d of oil production from mostly heavy oil fields along Cuba's northern coast.

The company forecast 2007 capital expenditures in Cuba at $130 million, including eight wells on blocks in which Sherritt has 100% interest and 10 wells on Block 7, in which it has 45% interest. Four wells are to be exploratory or appraisal wells, and more appraisal wells may be required.

Gross working interest oil production could climb 5-10% from 2006 levels, and limited demand for the domestic heavy oil could allow exports, the company said.

Sherritt is appraising Majaguillar field, obtaining greater efficiencies at the Canasi water treatment plant, and improving recovery from other production activities. Majaguillar is expected to be declared commercial this year.

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