Cuba’s oil drilling partner, Repsol says that they have hit a dry hole and are calling it quits. Repsol, an integrated Spanish oil and gas company, has spent more than $100 million drilling only to come up with no oil. Currently Cuba relies on Venezuela to deliver $3 billion of subsidized oil each year. Continuation of this program would be in jeopardy if Hugo Chavez were not to be reelected in the October elections. An additional threat is Chavez’s health. He has been undergoing treatment for cancer for a number of months.
Cuba’s needs a major oil find to revive its struggling economy. With Repsol out of the picture, Cuba’s fortunes rest with Petronas, the Malaysian oil company, that has began drilling an exploratory well about 180 miles southwest of Repsol’s dry well.
To read more, see this story in Oil Price.