Repsol Aims to Drill 2nd Cuban Deepwater Well in 2006

Repsol YPF will likely begin drilling its second deepwater exploration well offshore Cuba in 2006, Reuters reported a Repsol official as saying.

In June and July of this year, Repsol drilled a well almost 30km off the north coast to a depth of 1,500m. The company found oil but considered the find non-commercial because the discovery was not light crude.

The geological formation of that area is indicative of high-quality reservoirs, Repsol YPF's CEO Ramon Blanco said earlier this year. Analysts project investment figures at some US$1bn over a five-year period for feasible commercial production.

Cuba produces some 75,000 barrels a day, all of which is heavy crude and is used to generate electricity on the island.