Monday, January 26, 2009

Oil shuffle

Cuba has terminated its oil production sharing contract with Canada’s Pebercan, Reuters reports, and the company will receive a $140 million lump sum payment. Friday’s announcement came from Pebercan; so far there seems to be no comment from the Cuban ministry or the Cuban oil company, which is odd considering that Cuba is trying to show that its investment climate is attractive for foreign partners in the oil business.

La Jornada’s report notes that as of last November, Cuba was $108.5 million behind in its payments to Pebercan.

This report from the United Arab Emirates lumps Cuba’s move with those of other countries that are putting “oil industry nationalization back on their agendas.”

Meanwhile, also on Friday, AP reported that Cuba’s oil company signed a memorandum of understanding with a group of Russian companies. The memo mentions possible collaboration in all parts of the oil business, but is not binding.

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