China's CNPC and Cuba's Cupet sign pact to expand oil cooperation
China's state-owned China National Development Corp and Cuba's national oil company, Cupet, have signed a framework agreement in Havana to expand oil cooperation, CNPC said.
Under the agreement, CNPC will draw on its expertise in oil and gas exploration and development, engineering services and logistics to assist Cuba to lower operational costs, raise crude oil output and oil recovery.
The agreement was signed by CNPC General Manager Jiang Jiemin and Cupet President Raul Peres, and witnessed by Chinese Vice President Xi Jinping and head of the Cuban State Council Raul Castro.
In late 2010, CNPC won a deal to expand a Cuban oil refinery owned by Cupet and Venezuela's PdVSA from 65,000 bpd to 150,000 bpd. Huanqiu Contracting and Engineering Corporation, a unit of CNPC, was to manage the project, to be financed largely by Chinese banks and backed by guarantees from Venezuelan oil revenues, according to earlier reports.
Meanwhile, Great Wall Drilling Co., another subsidiary of CNPC, has been working with Cuban oil companies to provide drilling services in the region.
Since August 2005, GWDC has drilled 63 wells along the coast from Havana to Varadero, of which 31 are contracted with Cupet, and the rest with other Cuban oil companies. Total output of oil and natural gas from these wells has reached 13 mm barrels of oil equivalent.