Cuba Watch: Melbana and Sherritt with mixed results

In its 1H19 plans, operator Melbana Energy highlighted a deal with Cuba's state-run CubaPetroleo for the Santa Cruz field, allowing the Australian firm to develop operations and share in the revenues from enhanced oil recovery in the field.

In addition, Melbana noted it had signed a farmout agreement with Chinese Anhui Modestinner Energy for area 9. According to the agreement, Anhui Modestinner will pay all costs, including the drilling of two wells before November 2019 and a third well by July 2020. The agreement still requires Chinese and Cuban regulator approval and foresees Anhui Modestinner taking over operations of the field.

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Canadian nickel and energy company Sherritt said is expecting drilling results from a new 20-year reservoir in area 10, in the Bay of Cárdenas, in 2Q19. Total production was down to 1,597boe/ d in the fourth quarter of 2018, compared to 6,101boe/ d in the year-ago period.

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On the electricity front, Sherritt said its production was impacted by reduced availability of gas , despite growing demand. Production declined from 201GWh in 4Q17 to 184GWh in 4Q18, calculated from its 33% share in generator Energas .