Enhanced Oil Recovery Project in Cuba
Pentagon Petroleum has incorporated a Canadian company, Pentagon Oil, Inc. which has entered into an exclusive agreement with CUPET to provide enhanced oil recovery for inflow control technology for various oil fiels on shore Cuba which has in excess of 6 billion barrels of oil in place.
The Cuba National Oil Company or CUPET is Cuba’s only national oil company. It was founded in 1992 and is owned and operated by the Cuban national government with the mandate of carrying out all operations within the oil and gas chain of values in the country. It operates under the supervision of the Ministry of Energy and Mining. The company is involved in the extraction of petroleum deposits as well as the refining and distributing of petroleum products. In conjunction with the conglomerate Cimex, it operates a chain of filling stations selling gasoline in convertible pesos.
The extraction is based in Cuba’s north east region. the CUPET jointly produces oil on the island and has business agreements with, among others, the People’s Republic of China, the Spanish oil company Repsol and Canada’s Sherritt International who is producing 55,000 barrels per day.
Cuba produces around 80,000 barrels per day (13,000 m3/d) of heavy crude oil. Cuba consumes about 150,000 bbl/d (24,000 m3/d), of which 53,000 bbl/d (8,400 m3/d) of oil and oil products are imported from Venezuela and Russia on very generous financing terms under wide-ranging cooperation accords. With the current crisis in Venezuela and economic problems in Russia, the import of foreign aid crude oil has diminished considerably. Cuba has four refineries that produce fuel for the power grid. Cuba currently has electric blackouts across the country.
Pentagon has the exclusive right to use the Autonomic inflow control technology for enhanced oil recovery in Cuba. The technology employs a novel autonomous inflow control valve which shuts off unwanted fluids (water and gas) completely ensuring optimum gas or oil production and recovery.
There is no tax on the profits for the first eight years and 12 % after.
CUPET and Pentagon will split the profits from the enhanced recovery of the wells.
The Autonomous Inflow Control Valve technology (AICV) is proven technology. Through successful installations in Norway, Saudi Arabia, Canada, Brazil, Ecuador and China The AICV technology has demonstrated significant increases of oil production while at the same time the gas oil ratio (GOR) and/or water cut (WC) have been reduced significantly.