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Energy and Mining industries suffer under U.S.
blockade
Lorena
Sánchez
Cuban energy
and mining sectors are suffering under the U.S.
blockade of the country. Damages to the nickel
industry have reached 50 million dollars, with the
sector incurring greater costs given that products
must be exported to distant markets due to the
impossibility of trading with the United States,
Javier Rubén Cid Carbonel, vice minister of the
Ministry of Energy and Mines (MINEM) stated.
Cid Carbonel
also highlighted that in regards to the Electric
Union the blockade prevents the acquisition of
replacement parts for thermoelectric generators,
which means that many suffer from outdated
maintenance checks. "Recently we have been carrying
out maintenance work in several thermal plants,
which has forced us to buy from markets such as
China and Russia.
"In spite of
this the electric industry has gradually been
recovering, despite the serious impact of the
special period, today we are working on installing
modern technology to reduce, above all, electricity
fraud," he stated.
In regards to
effects on the oil industry, the vice minister
emphasized the difficulty involved in locating and
importing drilling rigs with less than 10% U.S.-made
components, which has complicated operations.
In addition, he
highlighted that despite these limitations, the
ministry must work intelligently in its search for
new trade and financial partners.
BUSINESS
OPPORTUNITIES UNDER THE NEW FOREIGN INVESTMENT LAW
In regards to
the upcoming Havana International Trade Fair (FIHAV
2014) different MINEM enterprise groups will present
businesses aimed at foreign investors in the sector.
Recently, Vivian Hictman Miranda, director of
Regulation and Control at MINEM, outlined some of
main business opportunities to be presented, in
particular those linked with the oil industry and
electricity sector in the country.
Regarding the
oil industry, the main opportunities are based on
risk analysis and shared production on land and in
shallow, deep and ultra deep waters.
According to
Hictman Miranda there are 39 identified blocks on
land and in shallow waters, 29 of which are open to
foreign investment.
In Cuba’s
Exclusive Economic Zone (ZEE), which contains an
estimated 20 billion barrels of oil, there are 59
exploration blocks, 50 of which are open to foreign
businesses wanting to invest. In addition, the
director stated that the duration of contracts on
land and in shallow water blocks will be 25 years,
while in the ZEE, oil and gas contracts will last
for 30 and 35 years, respectively.
Today, Cuba is
one of the principal nickel producers, with
development concentrated in Moa, Holguín. However,
small wells have been identified in the province of
Pinar del Río, San Felipe and Pinares de Mayarí,
also in Holguín, which could benefit from investment
activity.
Meanwhile, new
opportunities have arisen in Cuba’s electric
industry given the country’s need to change its
energy system, for which a new Policy for the
Perspective Development of Renewable Sources and the
Efficient Use of Energy is being considered.
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