May 30, 2012- Spanish oil giant Repsol has announced it will no longer drill in Cuba after failing in its most recent attempt to locate oil off the coast of the Caribbean nation. Investors and reporters were told by Antonio Brufau, the Chairman of the company, that Repsol will not drill another well in the country.
Repsol announced on May 18 that an exploratory well that had been drilled off the northern coast of Cuba came up dry. The news was not positive for the Cuban government, as they are relying on the possible existence of huge gas and oil reserves to revive their ailing economy.
The unsuccessful attempt by Repsol was about 31 miles from the Cuban coastline and cost the company nearly $100 million. The chairman of Repsol announced the company’s decision to stop drilling from its headquarters located in Madrid during a briefing about the company’s plans for investment over the next four years.
A spokesperson for Repsol said the company had decided it was not worth the cost to continue looking for oil and that the decision taken was a technical one. The spokesperson said that offshore drilling was extremely expensive and involved great risk. Four of their five attempts came up dry.
Expected to take the reins from Repsol in drilling for oil off the Cuban coast is Petronas, the Malaysian oil company.