July 12 () — Entities on the bottom in Cuba are the popular possibility for oil drilling operations set to start by as early as December, Australia’s Melbana Power stated.
Melbana is among the few overseas power firms, and the one one listed on the Australian inventory trade, with a longtime footprint in Cuba. The corporate has stakes in a number of oil prospects on the northern coast of Cuba.
At its onshore Block 9 contract, the corporate stated in an announcement on operations ended June 30 that it vetted a “turn-key” association with a Cuban entity that has entry to native rigs.
“At this stage that is the popular possibility as a result of substantial discount in operational complexity, with a drilling rig being recognized by the contractor and a drilling window nominated as notionally commencing in December 2018,” the corporate acknowledged.
The proposed rig, nonetheless, is scheduled for upkeep late within the third quarter and could be delayed to the primary quarter of 2019. The contractor was not recognized, although Melbana does have a longtime relationship with state-owned Cuba Oil Union.
The corporate in early April accomplished a young for a drilling rig that might be deployed later this yr. Bids are beneath evaluation whereas it appears for outdoor companions to purchase into its Cuban portfolio.
“Our Cuba actions continued to progress from a drilling readiness standpoint and our farmout discussions are additionally progressing,” CEO Robert Zammit stated in an announcement. “We’ll proceed to deal with this space through the third quarter.”
The corporate estimates it might price a minimum of $20 million to drill two wells in Cuba, greater than earlier estimates.
Melbana, which modified its title from MEO Australia to mirror a Caribbean aptitude, stated a June research of the reserves within the Zapato prospect inside so-called Block 9 verify its interpretation of a 71 million-barrel reservoir.