Cuba-Petróleo (CUPET), a Cuban oil company, has made a discovery of lighter crude oil on the Bacuranao prospect in Cuba.
The company discovered the new light oil in an exploration well drilled in the northern part of Cuba’s western region. That is also big news for Melbana Energy (ASX:MAY), which has assets placed in the same hydrocarbon system.
The Bacuranao discovery is in the northern fold belt trend. It continues into MAY-owned onshore Block 9. Moreover, the discovery is close to the Santa Cruz oil field for which MAY is negotiating an incremental oil recovery contract.
The Cupet Bacuranao discovery was made in the fourth quarter of 2017, and it is has been undergoing 10-month testing. Cupet announced that the oil produced from the field has a 22° API density. Thus, the Cupet Bacuranao is the first-grade quality oil in the area.
Below is the Bacuranao Discovery mapped out, along with MAY’s Block 9 onshore block in the proven hydrocarbon system and its Santa Cruz oil field, for which MAY has exclusive right to assess enhancement of oil production.
Cuba has always been quite a promising region in hydrocarbon exploration. Besides, companies continue to discover oil in new areas. Many companies have been profitably operating in the country. However, the region remains underexplored. Much of the exploration didn’t have the benefit in the past as now companies apply modern exploration techniques,
The government tries speeding up exploration because the oil industry produces half of Cuba’s domestic needs. The government adopted a 15-22.5% tax rate and an eight-year tax holiday for oil companies.