According to independent oil and gas company, Melbana Energy Limited, Cuban formal regulatory approval has been received for the entry of Sonangol into the Block 9 Production Sharing Contract (Block 9 PSC). As at 17 August 2020, Sonangol’s participating interest in Block 9 PSC is 70 per cent and Melbana’s is 30 per cent.
Sonangol is the National Oil Company of the Republic of Angola. It produces over 2 million barrels of oil per day and is Africa’s second-largest producer.
The Block 9 PSC covers 2,344 square kilometres onshore on the north coast of Cuba, 140 kilometres east of Havana, in a proven hydrocarbon system and along trend with the multi-billion barrel Varadero oil field.
Block 9 has multiple other producing fields within close proximity and the Motembo field, a working oil system that has produced a high-quality light crude (up to 64.5º API oil) within Block 9.
Melbana is prequalified as an onshore and shallow water operator in Cuba and was awarded a 100 per cent interest in Block 9 in September 2015.
According to independent expert McDaniel & Associates Consultants’ Competent Persons Report (30 June 2018), Block 9 is estimated to contain approximately 15.7 billion barrels of Oil-in-Place (best estimate) with a prospective resource of 676 million barrels (best estimate).
The receival of formal regulatory approval satisfies the last remaining Condition Precedent to the Farm-in Agreement executed between Sonangol and Melbana (as announced in May 2020) and therefore establishes certain actions to be completed by the parties within defined periods.
Melbana expects to commence construction of the first well pad next month and is currently running an international tender for the provision of the tubulars it needs to supplement local inventories.
A full operational update is expected to be provided by Melbana following the execution of contracts with drilling and other service providers and the completion of the international tender.
The planned two well drilling program in Block 9 is expected to test a total prospective resource of 236 million barrels of oil (best estimate).
