By Jules Miranda
Falling of oil prices due to new drilling techniques applied by the United States and the rise of schist extracting as an alternative to traditional fuel have put in a bind not only the largest producers of oil, but also the countries dependent of this offer and with undeveloped oilfields like Cuba. Even amid this scenario, the results of the country in oil matter are being positive, due to the implementation of production techniques and business initiatives to exploit by different partners and potential investors in the energy line.
As part of this promotion, starting next February 16 it will enter into force the new procedure approved for certification at the National Bureau of Mineral Resources of those foreign companies interested in the national oil and gas. The mentioned regulations, published in Resolution 299 of the Ministry of Energy and Mines, sees the light in an economically sensitive moment for the largest supplier of hydrocarbons in the country, Venezuela, from which about 100 000 barrels per day are imported with payment facilities, because national oil production barely covers half of domestic consumption.
The Act 299 was issued as part of a package of resolutions of the Ministry of Energy and Mines, within which there were two more regarding the domestic energy industry: Resolution 289, which created a Working Group for the control and improvement of regulations in case of oil spills on land, to act in parallel and collaterally with the Group of Anti -oil spill, under the Ministry of Transport, and Resolution 298, which approves the Internal Rules of the Exclusive Economic Zone Advisory Committee of Cuba in the Gulf of Mexico.
With the implementation of this certification system Cuba may have knowledge of the financial and legal status of the companies involved in the sector and can organize the participation of each of them according to the following rating categories:
-A Category: Company qualified to operate in any land or marine area, including the exclusive economic zone of Cuba.
-B Category: Company qualified to operate in any area of land and sea to a depth of 100 meters from the seabed.
-C Category: Company qualified to operate in any land area or those carrying out production increases operation in fields under production.
-D Category: Company qualified to participate in oil operations as non-operator.
The resolution in question also indicates that the request for qualification of foreign companies will be accompanied by the documents issued by the highest authority of the company, giving evidence of their financial situation (bankruptcy, suspension of payments or near losing all or partially the right to manage and dispose of their property), legal status and consistency with the forms of foreign investment under Cuban law.
There are some interested in participating in one way or another, in the Cuban economy in the “upgrade process”, specifically on issues related to the exploitation of national natural resources, many of them virgins. The presentation of Cuba on the ministerial meeting of the 21st World Petroleum Congress developed in Moscow generated expectations by the business opportunities offered by the island in that industry today. Rubén Cid, Deputy Minister of Energy and Mines, and head of the Cuban delegation to the event, then said that the greatest interest in relation to the Isle of about 5000 entrepreneurs from 80 countries gathered in Moscow was focused on the current status of the oil industry and new opportunities for foreign investment in the Caribbean nation.
Even though in 2012 part of the strategies aimed at drilling in deep water, made up by companies from Spain, Norway, India, Malaysia, Russia and Venezuela, went empty handed, since last year a program is executed based on a new technique for extracting crude, implemented by Boca de Jaruco Oil Company in conjunction with specialists from Russia, China and Cuba with good results. It is a thermal stimulation method in its oil fields, in order to facilitate and increase the extraction.
Sherritt is also part, after agreements with Cubapetróleo national company, of the joint project Energas. PDVSA, meanwhile, maintains its positions in the construction of a strategic storage facility of waste fuels in Matanzas, with a capacity of 600,000 barrels per day; as well as the reactivation of the refinery and terminal in Cienfuegos.
How does the investing dynamic then change the new certification regulations? It will basically be a better thought filter to debug companies with poor performance and conflicting legal situations that could be detrimental to the focus of Cuba for the exploitation of hydrocarbons. Once the Certificate of Qualification to be received, the foreign company shall be registered in the Petroleum Register, and shall be authorized to negotiate and sign contracts with the state oil company or for oil operations in the Republic of Cuba, in correspondence with the grade received. But a correct rating does not mean that the state oil company is obliged to negotiate contracts with the company in question.
However, the direction of the Ministry of Energy and Mines has stated the necessary convergence of experiences and foreign know-how abroad if we want to advance towards national energy independence: “The investments in oil industry are very expensive, so we need foreign capital. Moreover, from the technological point of view we have to draw on the experiences the international companies have today, because we could never get out alone in this area. “
Authors
OnCuba Staff,
OnCuba editorial staff
