Category Archives: Cuba

The Republic of Cuba, is an island country in the Caribbean.

Cuba drills for oil, but U.S. unprepared for spill

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By William Booth, Published: March 1

As energy companies from Spain, Russia and Malaysia line up to drill for oil in Cuban waters 60 miles from the Florida Keys, U.S. agencies are struggling to cobble together emergency plans to protect fragile reefs, sandy beaches and a multibillion-dollar tourism industry in the event of a spill.

Drawing up contingency plans to confront a possible spill is much more difficult because of the economic embargo against Cuba. U.S. law bars most American companies — including oil services and spill containment contractors — from conducting business with the communist island. The embargo, now entering its 50th year, also limits direct government-to-government talks.

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“We need to figure out what we can do to inflict maximum pain, maximum punishment, to bleed Repsol of whatever resources they may have if there’s a potential for a spill that would affect the U.S. coast,” Rep. David Rivera (R-Fla.) told in January a congressional subcommittee that oversees the U.S. Coast Guard.

An unusual coalition of U.S. environmentalists and oil industry executives have joined forces to push the White House to treat the threat of a spill seriously, while tamping down the anti-Castro rhetoric.

“There is no point in opposing drilling in Cuba. They are drilling. And so now we should be working together to prevent disaster,” said Daniel Whittle, Cuba program director of the Environmental Defense Fund, who has been brokering meetings between Cuban and U.S. officials.

Environmentalists applauded the announcement last week of an agreement between the United States and Mexico to allow for joint inspection of rigs operating in the Gulf of Mexico and the establishment of a common set of safety protocols between the two countries.

Nothing approaching this exists with the Cubans.

Because of the embargo, the talks between Cubans, Repsol and the Coast Guard are taking place in the Bahamas and Curacao — not Havana or Miami — under the auspices of the U.N. International Maritime Organization, paid for by charitable donations from environmental groups and oil industry associations.

A single Florida company is licensed to deliver oil dispersants to Havana. But there are no U.S. aircraft with contracts or permission to fly over Cuban waters. The current plan is to retrofit and deploy aging crop dusters from Cuban farms to dump the dispersants.

Obstacles to a cleanup

Repsol operates leases in U.S. waters in the Gulf of Mexico and has a staff of 300 based in Houston. But because of the embargo, none of the Houston staff is permitted to have anything to do with the Repsol operation in Cuba. Any assistance would have to come from Madrid.

Because of the embargo, and to protect Repsol from economic sanctions, no more than 10 percent of the components on the Scarabeo 9 drilling rig may be manufactured in the United States.

One of those components is the blowout preventer, a vital piece of safety equipment manufactured by National Oilwell Varco in Houston — whose employees cannot service the equipment while it is in Cuban waters.

If a blowout occurred, Repsol would have to await delivery of a capping stack, which would have to travel from Scotland to Cuba and then out to the rig. Experts predict it would take a week at minimum.

Cleanup crews arriving from the United States would be allowed to skim oil from the water and collect surplus oil gushing from the rig, but they’d have to take it someplace. The question is where? The U.S. tankers can’t enter Cuban territorial waters, and if they do, they are prohibited from returning to the United States for six months. The recovered oil would belong to Cuba, and so it can’t travel to the United States.

Modeling of ocean currents by the USGS suggests a spill at the Repsol exploratory well site probably would not affect the Florida Keys but would be swept north by the powerful flow of the Gulf Stream and then begin to deposit oil on beaches from Miami to North Carolina.

“If anything went really wrong out there, I believe there would be a quick political response,” said William K. Reilly, co-chairman of the national commission on the Deepwater spill and head of the Environmental Protection Agency under President George H.W. Bush.

But a lot can happen in a couple of days, Reilly said. “It’s time to face reality. It is, completely, in the interest of the United States that we get this right.”

“This is a disaster waiting to happen, and the Obama administration has abdicated its role in protecting our environment and national security by allowing this plan to move forward,” said Rep. Ileana Ros-Lehtinen (R-Fla.), chairman of the House Foreign Affairs Committee.

Ros-Lehtinen and her colleagues sponsored legislation to deny visas to anyone who helps the Cubans advance their oil drilling plans. They have also sought to punish Repsol.

“We need to figure out what we can do to inflict maximum pain, maximum punishment, to bleed Repsol of whatever resources they may have if there’s a potential for a spill that would affect the U.S. coast,” Rep. David Rivera (R-Fla.) told in January a congressional subcommittee that oversees the U.S. Coast Guard.

An unusual coalition of U.S. environmentalists and oil industry executives have joined forces to push the White House to treat the threat of a spill seriously, while tamping down the anti-Castro rhetoric.

“There is no point in opposing drilling in Cuba. They are drilling. And so now we should be working together to prevent disaster,” said Daniel Whittle, Cuba program director of the Environmental Defense Fund, who has been brokering meetings between Cuban and U.S. officials.

Environmentalists applauded the announcement last week of an agreement between the United States and Mexico to allow for joint inspection of rigs operating in the Gulf of Mexico and the establishment of a common set of safety protocols between the two countries.

Nothing approaching this exists with the Cubans.

Because of the embargo, the talks between Cubans, Repsol and the Coast Guard are taking place in the Bahamas and Curacao — not Havana or Miami — under the auspices of the U.N. International Maritime Organization, paid for by charitable donations from environmental groups and oil industry associations.

A single Florida company is licensed to deliver oil dispersants to Havana. But there are no U.S. aircraft with contracts or permission to fly over Cuban waters. The current plan is to retrofit and deploy aging crop dusters from Cuban farms to dump the dispersants.

Obstacles to a cleanup

Repsol operates leases in U.S. waters in the Gulf of Mexico and has a staff of 300 based in Houston. But because of the embargo, none of the Houston staff is permitted to have anything to do with the Repsol operation in Cuba. Any assistance would have to come from Madrid.

Because of the embargo, and to protect Repsol from economic sanctions, no more than 10 percent of the components on the Scarabeo 9 drilling rig may be manufactured in the United States.

One of those components is the blowout preventer, a vital piece of safety equipment manufactured by National Oilwell Varco in Houston — whose employees cannot service the equipment while it is in Cuban waters.

If a blowout occurred, Repsol would have to await delivery of a capping stack, which would have to travel from Scotland to Cuba and then out to the rig. Experts predict it would take a week at minimum.

Cleanup crews arriving from the United States would be allowed to skim oil from the water and collect surplus oil gushing from the rig, but they’d have to take it someplace. The question is where? The U.S. tankers can’t enter Cuban territorial waters, and if they do, they are prohibited from returning to the United States for six months. The recovered oil would belong to Cuba, and so it can’t travel to the United States.

Modeling of ocean currents by the USGS suggests a spill at the Repsol exploratory well site probably would not affect the Florida Keys but would be swept north by the powerful flow of the Gulf Stream and then begin to deposit oil on beaches from Miami to North Carolina.

“If anything went really wrong out there, I believe there would be a quick political response,” said William K. Reilly, co-chairman of the national commission on the Deepwater spill and head of the Environmental Protection Agency under President George H.W. Bush.

But a lot can happen in a couple of days, Reilly said. “It’s time to face reality. It is, completely, in the interest of the United States that we get this right.”

Source

Rig Hired by Spain’s Repsol Arrives off Cuba

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HAVANA – A deepwater oil rig hired by Spain’s Repsol-YPF for use in Cuba’s Gulf waters has arrived off the island’s coast and will be put into operation shortly.

The Scarabeo-9 platform was about 10 miles off northern Cuba Thursday and could already be seen from the coast.

The rig, built in China and Singapore and initially due to arrive in the summer of 2011, is heading west to an area off the coast of the city of Mariel, an industry official told Efe, adding that exploratory drilling is expected to begin soon.

The platform will be used to determine the crude potential of Cuba’s Exclusive Economic Zone, which is located in the southeastern Gulf of Mexico and estimated to hold up to 9 billion barrels of petroleum in more than a score of commercially significant prospects.

The EEZ covers some 112,000 sq. kilometers (43,240 sq. miles) and is divided into 59 blocks of 2,000 sq. kilometers (772 sq. miles) each, 22 of which have been awarded to foreign companies such as Spain’s Repsol, Venezuela’s PDVSA and PetroVietnam.

Eight onshore blocks also have been awarded to Cuban state oil firm Cupet and five others to foreign companies, according to official figures.

Cuba’s oil and gas output has stabilized over the past five years at a level of 4 million tons of oil equivalent, according to the Basic Industry Ministry.

Last year, several U.S. House Democratic and Republican leaders urged Repsol, which also has leases to drill in U.S. waters of the Gulf of Mexico, to drop plans to explore for oil in Cuban waters and warned the company of possible legal action in the United States.

In a letter sent to Repsol Chairman and CEO Antonio Brufau, 34 House lawmakers said any exploratory drilling the oil company conducts in Cuban waters “will provide direct financial benefit to the Castro dictatorship.”

U.S. officials also have expressed concerns about environmental risks considering the drilling site’s proximity to U.S. soil, just 95 miles from the Florida Keys, although Repsol has pledged to adhere to U.S. regulations and the highest industry standards in its drilling in Cuban territorial waters.

The U.S. Bureau of Safety and Environmental Enforcement and the U.S. Coast Guard inspected the Scarabeo-9 last week and found it to be in compliance with U.S. and international standards governing deepwater drilling.

BSEE director Michael Bromwich told the House and Senate last year that U.S. authorities had witnessed a spill response exercise carried out at Repsol’s office in Trinidad and that during that simulation Repsol technicians demonstrated their ability to respond successfully to a hypothetical spill.

Concerns about Cuba’s plans to tap its offshore oil reserves have grown in the wake of the devastating 2010 BP oil spill in the Gulf of Mexico.

Cuba is hoping crude discoveries will provide a boost to the communist-ruled island’s ailing economy and make it less dependent on imported oil from close ally Venezuela. EFE

Source

What if… Is The US Prepared For Cuban Oil Rigs?

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By John Konrad On January 10, 2012

Will the United States be prepared if Cuba’s new offshore rigs spill oil into US waters?

To address this question, personnel from the U.S. Coast Guard and the Bureau of Safety and Environmental Enforcement (BSEE) completed a review today of the offshore oil rig Scarabeo 9 following an invitation from the vessel’s operator, Repsol. While aboard the Scarabeo 9, personnel reviewed vessel construction, drilling equipment, and safety systems  in anticipation of the rig’s upcoming drilling operations in Cuba’s exclusive economic zone in the coming months.

According to the Coast Guard, the  review is “consistent with U.S. efforts to minimize the possibility of a major oil spill, which would hurt U.S. economic and environmental interests”. While US regulators exercise no legal or regulatory authority over the rig, the review compared the vessel with applicable international safety and security standards as well as U.S. standards for drilling units operating in the U.S. Outer Continental Shelf. U.S. personnel found the vessel to generally comply with existing international and U.S. standards by which Repsol has pledged to abide.

In anticipation of an increase in drilling activities in the Caribbean Basin and Gulf of Mexico, the United States is participating in multilateral discussions with the Cuba as well as other countries nearby including Bahamas, Jamaica and Mexico on issues including, drilling safety and oil spill preparedness. The Coast Guard views the cooperation as providing valuable information on each country’s spill response plans and capabilities. The Coast Guard is also working to update contingency plans for spills on international waters that could potentially affect U.S. waters and coastline.

In addition to international cooperation, the USCG and BSEE have involved more than 80 federal, state, local, and maritime industry representatives in spill response plans. The group held a table top exercise on Nov. 18, 2011 to address a hypothetical international spill off the coast of Florida. The exercise allowed participants to discuss sensitive environmental areas, planning strategies, likely issues and response coordination principles that responders would face, as well as gather additional information to use in future planning.

The USCG notes the review conducted today does not confer any form of certification or endorsement under U.S. or international law.

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  2. Too Close For Comfort – U.S. To Inspect Cuban Rig
  3. Oil Spill-Containment Companies: So can we operate in Cuban waters?
  4. US Completes Review of Drilling Rig Headed for Cuba
  5. Coast Guard Prepares for International Offshore Drilling Close to our Shores

Source

Cuba Oil Drilling Tests U.S. on Protecting Florida or Embargo

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By Katarzyna Klimasinska

Dec. 8 (Bloomberg) — Four U.S. inspectors armed with safety glasses and notebooks will set out on a mission next month to protect Florida’s beaches from a Cuban threat.

They’ll rendezvous in Trinidad and Tobago with the Scarabeo 9, a rig headed to deep waters off Cuba to drill for oil about 70 miles (113 kilometers) south of Florida’s Key West.

Repsol YPF SA is making the Scarabeo 9 available to the U.S. inspectors before the rig starts drilling closer to Florida than the BP Plc well that failed last year in the Gulf of Mexico, causing the biggest U.S. offshore oil spill. The exploration poses an environmental, political and diplomatic challenge to the U.S. more than 50 years after cutting off relations with Cuba’s communist regime.

The Obama administration’s dilemma is “what steps to take for environmental protection and how much to honor current Cuba policy,” Dan Whittle, Cuba program director at the New York- based Environmental Defense Fund, said in an interview.

In the aftermath of the revolution that brought Fidel Castro to power, the U.S. banned exports to Cuba in 1960, withdrew diplomatic recognition, backed the failed Bay of Pigs invasion in 1961 and imposed a full trade embargo in 1962.

Now generations of animosity between the two nations limit cooperation on safety standards and cleanup precautions for the Cuba drilling planned by Madrid-based Repsol, which would be followed by state-owned companies from Malaysia to Venezuela. A conference on regional oil-spill response being held this week in Nassau, Bahamas, may provide a forum for discussions by U.S. and Cuban representatives.

Juan Jacomino, a spokesman for the Cuban Interests Section at the Swiss embassy in Washington, declined in an interview to comment on drilling off of the island nation.

Spare Parts

Repsol can use the Scarabeo 9 without violating the U.S. trade embargo because it was built at shipyards in China and Singapore, and fewer than 10 percent of its components are American, according to its owner, Eni SpA.

The sanctions would block spare parts from the U.S. for the rig’s blowout preventer, a safety device that failed in the BP spill. The restrictions also require Helix Energy Solutions Group Inc. of Houston, which provides oil-spill containment equipment for Repsol in the Gulf of Mexico, to seek a waiver to do so in Cuban waters in case of an accident.

U.S. companies seeking to do business with Cuba must ask the Commerce Department, which considers most applications “subject to a policy of denial,” the agency says on its website. The Treasury Department weighs requests to travel from the U.S. to Cuba.

Granting too few permits for spill prevention and response would keep contractors from offering the technology and services developed after the BP spill, Lee Hunt, president of the Houston-based International Association of Drilling Contractors, said in an interview.

Cuban Exiles

Approving too many licenses would undermine the embargo, enriching a regime listed by the U.S. State Department as a nation supporting terrorism along with Iran, Sudan and Syria, according to anti-Castro lawmakers such as Republican Representative Ileana Ros-Lehtinen of Florida, who heads the House Foreign Affairs Committee.

U.S. “assistance, guidance and technical advice” to Repsol, including the planned visit to Scarabeo 9, may violate the law by “helping to facilitate” the company’s work and providing the Cuban government “with a financial windfall,” Ros-Lehtinen said in a Nov. 1 letter to President Barack Obama.

Ros-Lehtinen, who immigrated from Cuba with her family at age 8, is a leader among Cuban exiles in South Florida who have opposed easing U.S. restrictions. Florida, which has been a swing state in presidential elections, also has been a bastion of opposition to oil drilling that opponents say could despoil the beaches that are a prime draw for tourists.

Florida Drilling Foes

Lawmakers such as Senator Bill Nelson, a Florida Democrat, have fought to keep drilling out of U.S. waters in the eastern Gulf of Mexico bordering Florida.

Nelson and Senator Robert Menendez, a New Jersey Democrat, introduced a bill Nov. 9 that would require foreign companies drilling in Cuban waters to pay for damage to U.S. territory without liability limits. Senator Marco Rubio, a Florida Republican, joined as a cosponsor.

Oil from BP’s spill tarred beaches 150 miles away in Florida’s northwestern Panhandle.

Now Floridians are faced with drilling under the jurisdiction of Cubans, who “don’t have the resources” to control a blowout, Jorge Pinon, an energy consultant and visiting research fellow at the Cuban Research Institute at Florida International University in Miami, said in an interview.

“If the U.S. is not willing to help” in an emergency, “the resources are going to come from Canada, Norway and the U.K., and it will take a very long time,” said Pinon, who led Amoco Corp. units in Mexico City and retired from BP in 2003, according to his biography.

Repsol’s Contract

Repsol signed a contract with Cuba in 2000, according to the company’s website, and confirmed the presence of oil with a Norwegian rig in 2004. Repsol will drill in about 5,000 feet (1.5 kilometers) to 6,000 feet of water, about the depth of BP’s Macondo well, according to Pinon.

Petroliam Nasional Bhd., or Petronas, based in Kuala Lumpur; New Delhi-based Oil & Natural Gas Corp.; Hanoi-based Vietnam Oil & Gas Group, known as PetroVietnam; Caracas-based Petroleos de Venezuela SA; and Sonangol SA of Luanda, Angola, also hold Cuban blocks, Pinon said.

U.S. officials say they are doing all they can to ensure safe drilling off Cuba.

“We are quite focused, and have been for many, many months” on “doing anything within our power to protect U.S. shores and U.S. coastline,” Tommy Beaudreau, director of the Bureau of Ocean Energy Management, an industry regulator, said in a Nov. 29 interview at Bloomberg’s Washington office.

Wild Well Control

The administration has issued some licenses to U.S. companies to respond to a spill in Cuban waters, Mark Toner, a spokesman for the State Department, said in an e-mail. He didn’t say how many have been approved, and the Commerce and Treasury departments didn’t respond to e-mailed requests for comment.

Wild Well Control Inc. of Houston is one permit recipient, according to Hunt of the drilling contractors’ trade group. The company didn’t respond to e-mails and phone calls seeking comment.

“Helix plans to build a new subsea containment cap to safeguard drilling operations in Cuba,” Cameron Wallace, a spokesman for that company said in an e-mail about its request for U.S. licenses. “The cap and associated equipment will be staged at a U.S. port near to the drilling site to minimize response time.”

Walking the Deck

In their visit to the Scarabeo 9, two inspectors from the U.S. Coast Guard and two from the Interior Department will walk the deck and check generators, the positioning system and firefighting equipment, Brian Khey, who will be on the team, said in an interview.

The Americans will watch a firefighting simulation and conduct an abandon-ship drill, according to Khey, the supervisor at the Coast Guard’s Outer Continental Shelf National Center of Expertise in Morgan City, Louisiana,

While the visitors will discuss with Repsol any deficiencies they find, they won’t have enforcement powers, Khey said. Nor will they be able to check the blowout preventer or the well casing and drilling fluid that will be used on site, according to the Interior Department.

Scarabeo 9 was built “according to the latest and most advanced international standards available at the time of her design and construction,” Rome-based Eni said in an e-mailed statement. “Health, safety and environmental protection are always a top priority.”

Eni Subsidiary

The vessel “is one of the very few units in the industry which is using a technology which is not an American one,” Pietro Franco Tali, chief executive officer of Eni’s oilfield- services subsidiary, Saipem SpA, said on an Oct. 27, 2010, conference call.

One U.S. component is the blowout preventer, made by Houston-based National Oilwell Varco Inc. The company hasn’t applied for a license to do business with Cuba and doesn’t plan to, Chief Financial Officer Clay Williams said in a phone interview.

That means rig operators will have to seek training and spare parts in Europe or Asia, according to Hunt, whose group represents 1,494 companies including Saipem.

“It’s like buying a Mercedes and being told you have to go to a Ford dealer for parts,” Hunt said in an interview.

The results of Cuba’s drilling may affect U.S. energy policy. Success would put pressure on the U.S. to open its waters surrounding Florida for exploration, Pinon said.

A serious accident off of Cuba could throw the industry out of the Gulf of Mexico, according to Brian Petty, executive vice president for governmental affairs of the drilling contractors’ group.

“A mess” in Cuban waters would lead critics of drilling to say, “Stop it, don’t let it go on anywhere,” Petty said.

–With assistance from Nicole Gaouette in Washington and Nguyen Dieu Tu Uyen in Hanoi. Editors: Judy Pasternak, Larry Liebert

To contact the editor responsible for this story: Larry Liebert at lliebert@bloomberg.net

Iran Conducting Anti-U.S. Operations from Latin America – Atlas Shrugs

Iran Twitter Flag

Obama is neither inept nor stupid; he is, in fact, dangerous. Obama’s sanction of Iran and aiding and abetting in the putdown of the freedom revolution in Iran in 2009 ranks, IMAO, as his most monstrous failure, among countless others.

A small number of us in the blogosphere (those concerned with the global jihad) have been documenting the increasing ties between Iran and Venezuela, Brazil, and Cuba. Further, the infiltration of Hezb’allah in Latin America and particularly in Mexico is well known. Hezb’allah exploits the drug cartels’ narco-transit routes in Mexico…..

Iran Conducting Anti-U.S. Operations from Latin America – Atlas Shrugs.

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