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For restricted use by Ecopetrol America Inc. (“EAI”). All rights reserved. 1 HOT BLACK SALSA: A BRIEF HISTORY OF PETROLEUM IN CUBA BY JAMES PODRUSKI, ALTURAS RESOURCES; EVELIO LINARES CALA, SOCIEDAD CUBANO DE GEOLOGIA; AND SCOTT E. THORNTON* ECOPETROL AMERICA *NOW THE BURMAH OIL COMPANY LIMITED AAPG-SEG ICE 2016 CANCUN SEPT. 7, 2016

Hot Black Salsa: A Brief History of Petroleum in Cuba

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HOT BLACK SALSA: A BRIEF HISTORY OF PETROLEUM IN

CUBA

BY

JAMES PODRUSKI, ALTURAS RESOURCES; EVELIO LINARES CALA, SOCIEDAD CUBANO DE GEOLOGIA;

AND SCOTT E. THORNTON* ECOPETROL AMERICA*NOW THE BURMAH OIL COMPANY LIMITED

AAPG-SEG ICE 2016CANCUN

SEPT. 7, 2016

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WHY IS THERE A HISTORY OF PETROLEUM IN CUBA?

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WHERE IS THE PETROLEUM IN CUBA?

Active “leaky” petroleum system and present field locations

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WHAT DOES THE “LEAKY” SYSTEM LOOK LIKE?

1. Active Seeps

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2. Oil Saturated Outcrops/Exhumed Oilfields

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3. Asphalt Dykes

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I. Pre-commercial exploitation- Indigenous Peoples, Spanish Explorers/Colonists

II. 1860 – 1960 - Spanish & Cuban phases, pre-WW II, 1950’s

III.1960 – 1990- Centrally Planned Economy - Cupet

IV. 1990 – Present- Onshore/Shallow Water, Deep Water

The Four Phases of Cuban Petroleum History

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PHASE I. INDIGINEOUS PEOPLES OF CUBA CAULKING CANOES /TOOTH

PROTECTION

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PHASE I. TRADE OF CUBAN BITUMIN FOR MAYAN CHICLE AND SALT ??

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OCAMPO CIRCUMNAVIGATES CUBA, 1508

USES OIL IN HABANA BAY TO CAREEN SHIPS

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1. Late 1800’s – Asphalt mined: paved streets in North America & used in industrial furnaces, >25 million tonnes

2. 1881 – naphtha & gas discovered at Motembo , commercial exploitation for gas lighting and lubricants until the automobile ~ 1900

3. 1898, Cuban independence from Spain

4. 1913, gas discovered in water well at Tropical Brewing Co., La Habana

PHASE II

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5. Light oil discovered on north coast in 1915, activity increase 1910-WW II, production levels ~ 100’s BOPD6. Oil discovered in Central Cuba, 1954, set off exploration and exploitation boom

PHASE II

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EARLY PHASE II

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• Sparked by discovery at Jatibonico in 1954

• Over 20 companies active with most of country leased

• CP to 1959 ~ 5 MM BO• ~ 400,000 BPA• ~ 100 E & D wells per year

The 1950’s Oil Boom

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The 1950’s Oil Boom

APPROXIMATE LOCATION OFPRINCIPAL CONCESSION HOLDERS

Cuban Gulf OilAtlantic RefiningStandard Oil of CaliforniaShellShell, Atlantic, Jersey (Standard)Jersey E&PPerlaUnion Oil of CaliforniaUnion Oil of CaliforniaCUPETCubanAmericas PetroleumBentham & Trebes/Russell Cobb, Jr.Ted Jones Oil Exploration CanadianLee OilCuban American Drilling & Expl.

Atlantic Shell

Atlantic

Shell/Atlantic/Jersey

Jersey

HAVANA

GULF OF MEXICO

UnionGulf

CARIBEAN SEA

ATLANTIC OCEAN

Cuban AmericanJersey

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A WELL DRILLED IN LA HABANA IN THE LATE 1950’S

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PRE-REVOLUTION CUBA

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GEOLOGISTS AND THE CUBAN REVOLUTION

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1. Cuban Revolution 1959, eventually evolves into CPE

2. Cupet, Cuban National Oil Company established

3. Varadero discovered 1971, initial north coast heavy oil E & D in several fields

4. Lead eventually to discovery of 27 fields with 550 MM Bbls Rec., CP ~350MM Bbls, used internally for power generation

PHASE III

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OIL ACTIVITY DURING THE CUPET ERA, 1962-1990

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1. Cuba opens for oil exploration/exploitation under PSA’s

2. 1990’s land boom & drilling activity increase

3. Only success on north coast heavy oil trend, field extensions/discoveries

4. 2000’s deep water blocks & drilling of 4 wells

PHASE IV

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EXPLORATION BLOCKS 1998

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EXPLORATION BLOCKS, 2010

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Cuban Oil Production in Modern Era(courtesy of Gordon Hurlburt, Sherritt

International)

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YUMURI 201

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SHERRITT RIG #2, YUMURI 228

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THE FUTURE OF ENERGY IN CUBAA CUBAN LOGGING TRUCK “SUSTAINABLE

DEVELOPMENT”

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THE FUTURE OF ENERGY IN CUBAChasing Windmills????

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Or – Find more hydrocarbons through exploration and

[email protected]

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ACKNOWLEDGEMENTS

Gordon Hurlburt and Sherritt International

Thomas Ambrose, Retired, ex-Kewanee

Alan Fraser, Retired, ex-Atlantic Refining

Susanne Gendron, Editor

[email protected]