Second Cuban Offshore Oil Well Also a Bust

Source:

"A second deep-water exploratory well in the Gulf of Mexico has proved a bust, Cuba's state oil company announced Monday, dealing another blow to the island's dreams of petroleum riches."

Bloomberg Businessweek, Peter Orsi

A second deep-water exploratory well in the Gulf of Mexico has proved a bust, Cuba's state oil company announced Monday, dealing another blow to the island's dreams of petroleum riches.

The drilling operation carried out by PC Gulf, a subsidiary of Malaysia's Petronas, and Gazpromneft of Russia, concluded July 31 off the western province of Pinar del Rio, Cuban state oil company Cubapetroleo said in a statement.

Analysis of the findings revealed an "active petroleum system that could extend to other parts of the four blocs contracted by PC Gulf and Gazpromneft, and even beyond their limits," read the statement, which was published by Communist Party newspaper Granma.

"Nevertheless, at that point the rocks are very compact and do not have the capacity to deliver significant quantities of petroleum and gas," it continued, "so it cannot be qualified as a commercial discovery."

Exploratory wells commonly turn out to be dry or not viable, and experts say production was always at least three to five years out from any confirmed strike. . .View Full Article

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