3.750
%
Neutral
58
mm boe
22
%
There has been increasing exploration interest over the last few years across the Caribbean region, which might encourage investments in Cuba as well. Recent oil and gas developments show promise, but the issue remains one of access to technology, development timescales, and the ever-present threat of nationalisation.
April 7, 2024
Americas - Central
mm bbl
bcf
Caribbean, island between the Caribbean Sea and the North Atlantic Ocean, 150 km south of Key West, Florida
PSC/PSA
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 does not include royalties, surface fees, or production bonuses, except for training fees. Cuba's fiscal changes since 2014 have made the country increasingly attractive and favourable, especially for deep-water blocks.
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. However, Cuba remains one of the least free, with a freedom score deteriorating year on year.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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