Australia Enters Cuban Energy Sector

Australia Enters Cuban Energy Sector
By MarEx 2015-09-03 19:22:21

MEO Australia has entered the Cuban oil and gas sector. MEO Australia
and state-owned oil company Cuba Petróleo Union (CUPET) executed the
Cuba Block 9 Production Sharing Contract (PSC) in a ceremony in Havana,
Cuba on September 3.

The Block 9 PSC is a hydrocarbon-rich region with multiple nearby
discoveries, including the multi-billion barrel Varadero oil field.
Block 9 contains the Motembo field, the first oil field discovered in Cuba.

Cuba currently produces approximately 80,000 barrels per day, which is
about 50 percent of the country's oil consumption. CUPET produces the
majority of the island's oil and Canada's Sherritt International is the
only foreign producer.

In 2014, Cuba passed the Foreign Investment Act to encourage new
investment which set corporate taxes rate between 15 and 22 percent and
an eight-year tax exemption for new investors.

MEO has been in discussions with CUPET since prequalifying as an onshore
and shallow water operator in early 2013. Block 9 was MEO's preferred
entry block due to the confirmed presence of hydrocarbons and the close
proximity to existing production and infrastructure.

MEO Australia is an Australian Stock Exchange listed, independent oil
and gas company that has a portfolio of exploration, appraisal and
development stage opportunities in Cuba, New Zealand and, on Australia's
North West Shelf, the Ashmore Cartier and Bonaparte Gulf regions.

Block 9 lies on Cuba's north coast and covers around 2,380 square
kilometers.

Source: Australia Enters Cuban Energy Sector -
http://www.maritime-executive.com/article/australia-enters-cuban-energy-sector