Crude output up 3.7% in 2003

Cuba's crude production rose 3.7% to 4.3 million tonnes of oil equivalent in 2003 compared to 2002, according to state oil company Cubapetroleo (Cupet) president Fidel Rivero. Cupet expects production to increase a further 8% in 2004. "This is the tenth consecutive year that oil output has risen," business magazine Opciones quoted Rivero as saying. Most of the country's oil and associated gas production is used for power generation in plants that are currently being modernized in order to better utilize Cuba's heavy crude. Since last year Cupet has been using naphtha derived from the refining process as a substitute for more expensive imported diesel, saving the country more than US$20mn a year. Substituting domestic crude for imported fuel saves US$90-100/tonne, saving the country almost US$300mn a year, Opciones reported.