Fascinating AP story on Cuba oil hunt, US sanctions

AP-Cuba doing their job. Look at this:

Experts say it is not unusual that a 3-mile (4.8-kilometer) deep exploratory well drilled at a cost of more than $100 million by Spanish oil giant Repsol was a bust. Four out of five such wells find nothing in the high-stakes oil game, and petroleum companies are built to handle the losses.

But Cuba has more at stake, and only a few more spins left of the roulette wheel. The enormous Scarabeo-9 platform being used in the hunt is the only one in the world that can drill in Cuban waters without incurring sanctions under the U.S. economic embargo, and it is under contract for only one to four more exploratory wells before it heads off to Brazil.

Go check it out.

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6 thoughts on “Fascinating AP story on Cuba oil hunt, US sanctions

  1. westslope

    I suppose an important oil find would accelerate the demise of the current embargo against Cuba.

    Was recently in Florida where one tourist operator suggested that fear of loss of tourism to Cuba is a factor in maintaining the status quo.

  2. Dr. Faustus

    Fidel is 85, Raul 80. How much longer do you think they can hang-on? How much do the Castro brothers owe the rest of the world? It was in the article:

    “Because of the embargo, Cuba is shut off from borrowing from international lending institutions, and the island’s own poor record of repayment has left most other creditors leery. Cuba, for instance, owes the Paris Club of creditor nations nearly $30 billion.”

    30 Billion! What group of morons lent 30 b to Cuba even after having been “shut off from international lending institutions? That’s kinda silly. No, it’s really dumb. I doubt the Paris Club will never, ever, see their money again.

    1. sapitosetty Post author

      Great, Doc. I hope that venting felt good. Now here’s a bit of the reality:

      http://uk.reuters.com/article/2011/11/07/uk-cuba-debt-idUKTRE7A64AS20111107

      “The Paris Club reported that Cuba owed its members $30.5 billion (19.0 billion pounds) at the close of 2010, but more than $20 billion of the debt was in old transferable Soviet rubles that Russia now claims but Cuba does not recognise.”

      Of those $10 bln, you really think those countries won’t get repaid? You want to buy credit default insurance on it?

      1. NorskeDiv

        Is Cuba keeping current on these deficits? Aren’t they technically in default on loans to France and South Africa? I’m guessing they are current on some loans, since you suggest credit default insurance which obviously isn’t sold on already defaulted debt so far as I know.

  3. HalfEmpty

    All the rigs similar to this have more than 90% U.S. made parts? This must refer to particular parts of the drill. Aren’t most of these rigs built in Asian shipyards?

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