Cuba

Investment & Operational Criteria

Key Indicators

Risk Premia

3.750

%

Outlook

Neutral

Rating

CCC|4H|±

Ranking

80

Reserves (1P)

Total

mm boe

Oil

22

%

Summary

There is an increasing exploration interest during the last few years across the Caribbean region which might encourage investments in Cuba as well.

Updated

May 19, 2021

Country Basics

Region

Americas - Central

Reserves (1P)

Oil

mm bbl

Gas

bcf

Location

CubaCuba

Caribbean, island between the Caribbean Sea and the North Atlantic Ocean, 150 km south of Key West, Florida

Outline

Tax Regime
Type

PSC/PSA

Tax Regime
Notes

Cuba offers acreage for upstream operations through production sharing agreements (PSAs). A new deepwater PSA model has been announced as part of Cuba's first Offshore Licensing round. The new PSA model except from training fees does not include any royalties, surface fees and production bonuses. Cuba's fiscal changes since 2014 are increasingly attractive and favourable, especially for deep-water blocks.

Investment & 
Operational
Climate

The government continues to balance loosening its socialist economic system against a desire for firm political control by allowing private ownership of real estate and new vehicles, allowing private farmers to sell agricultural goods, and adopting a new foreign investment law

Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.

© 2021 Oil & Gas Advisors Limited
Website by Rugby Web Design