Oil hopes: Cuba
Cuba hopes rise as rig heads its way
An offshore drilling rig will soon head to Cuba, a move which could kick-start the Caribbean island's bid for energy independence and pressure the Obama administration to relax US sanctions against the country.
Although details are murky, industry and diplomatic sources told Reuters that a rig has been found and could be drilling in Cuban waters within the next six to eight weeks.
Industry players said finding a rig to drill in the deep waters was problematic because of the need to use equipment with less than 10% American technology, to comply with the long-standing US embargo against Cuba.
A consortium led by Spain's Repsol-YPF will be the first to begin drilling after taking possession of the rig, a Reuters report said.
Repsol drilled a test well in 2004 and at the time said it discovered traces of high quality oil, but it was not commercially viable at the time.
The Spanish player has an agreement with Cuba covering exploration at six offshore blocks. Norway's StatoilHydro and Indian player ONGC Videsh join Repsol in the consortium.
Repsol was not immediately available for comment when contacted by UpstreamOnline.
One industry source told the news agency the rig could eventually be used by other foreign interests eyeing the Cuban play, especially if results are promising.
The area off Cuba's northern coast is believed to hold about 5 billion barrels of oil and 10 trillion cubic feet of natural gas, according to the US Geological Survey.