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• Publication Date: February 1, 1962
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THE PETROLEUM INDUSTRY IN CUBA
CIA/RR EP 62-5
February 1962
WARNING
This material contains information affecting
the National Defense of the United States
within the meaning of the espionage laws,
Title 18, USC, Sees. 793 and 794, the trans-
mission or revelation of which in any manner
to an unauthorized person is prohibited by law.
CENTRAL INTELLIGENCE AGENCY
Office of Research and Reports
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This publication presents a basic survey of the petroleum industry
of Cuba. It is designed to update intelligence information published
before the intervention of the Cuban government in the foreign-owned
petroleum properties in mid-1960 and to consolidate intelligence col-
lected since then. No attempt has been made to speculate on future
economic activities in the petroleum industry.
Some difficulty was experienced in converting statistics to the
standard unit of barrels e
cation. Published data f(r~theayears tup to the middle of 19960 were r
ported in barrels and barrels per day. Data for the period since mid-
1960 have been reported in metric tons.
cation are expressed in barrels. Volumetric data in this publi-
publi-
Tonnages reported in source materials
have been converted at the rate of 7.3 barrels per metric ton. Unless
otherwise indicated, no attempt has been made to convert reported
tonnages of individual petroleum products on the basis of specific
weights. Tonnages per year may be converted to barrels per day by di-
viding by 50, and barrels per day may be converted to metric tons per
year by multiplying by 50.
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CONTENTS
Page
Summary and Conclusions . . . . . . . . . . . . . . ... . . . 1
I. Introduction . . . . . . . . . . . . . . . . . . . . . . . 3
II. Administration . . . . . . . . . . . . . . . . . . . . . . 3
III. Exploration and Production . . . . . . . . . . . . . . . . 4
IV. Refining . . . . . . . . . . . . . . . . . . . . . . . . . 6
V. Demand . . . . . . . . . . . . . . . . . . . . . . . . . . 8
VI. Foreign Trade . . . . . . . . . . . . . . . . . . . . . . 9
Appendixes
Appendix A. Statistical Tables . . . . . . . . . . . . . . . 11
Appendix B. Demand for Parts and Related Materials for the
Maintenance and the Operation of the Cuban Pe-
troleum Industry . . . . . . . . . . . . . . . . 17
Appendix C. Storage and Distribution Facilities of the Cuban
Petroleum Industry . . . . . . . . . . . . . . . 19
Tables
1. Cuba: Production of Crude Oil, 1959-60 . . . . . . . . . 5
2. Cuba: Refining Capacity, 1 January 1960 . . . . . . . . . 7
3. Cuba: Estimated Domestic Demand for Petroleum Products,
1958-61 . . . . . . . . . . . . . . . . . . . . . . . . . 13
4. Cuba: Percentage Distribution of Domestic Demand for Pe-
troleum Products, by Principal Consumer and Type of Prod-
uct, 1958 . . . . . . . . . . . . . . . . . . . . . . . . 14
5. Cuba: Foreign Trade in Crude Oil and Petroleum Products,
1958-61 . . . . . . . . . . . . . . . . . . . . . . . . . 15
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Page
6. Cuba: Estimated Imports of Crude Oil and Petroleum
Products from the Soviet Bloc, 1960-61 . . . . . . . . . 16
7. Cuba: Principal Bulk Oil Storage Facilities, 1 January
1960 . . . . . . . . . . . . . . . . . . . . . . . . . 21
8. Cuba: Bulk Oil Storage by User Service, 1 January 1960 . 31
map
Cuba: Petroleum Facilities, 1960 inside back cover
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THE PETROLEUM INDUSTRY IN CUBA*
Summary and Conclusions
Cuba has practically no domestic reserves of primary energy, but
because of its favorable location in relation to the vast resources
of petroleum in the Caribbean areas, particularly Venezuela, the
economy of Cuba was developed with heavy dependence on petroleum as a
source of energy.
In the period before the Castro revolution, petroleum provided
about 50 percent of the total supply of energy. Most of the remainder
was provided by bagasse, a waste product of the sugar industry. Cuba
produces only nominal quantities of crude oil from domestic deposits
and thus is dependent on imports for almost all of its supply of petro-
leum. The prospects for finding and producing crude oil from domestic
deposits are unfavorable. The dependence on imports of petroleum,
therefore, is expected to continue indefinitely.
Before mid-1960, about 95 percent of Cuba's imports of petroleum
originated in the Caribbean area, principally Venezuela. Exports of
oil to Cuba represented about 3 percent of Venezuela's total exports
of oil. Since that time the countries of the Soviet Bloc, particularly
the USSR and Rumania, have supplied oil to Cuba. This shift in supply
to Bloc sources brought about the intervention by the Cuban government
in the refineries of the foreign oil companies in June 1960 and their
ultimate expropriation in October 1960.
The Soviet-Cuban Commercial Agreement of 13 February 1960 provided
for the shipment of petroleum to Cuba. Following the refusal of the
oil companies to accept Soviet crude oil in their refineries, the
Cuban government took control of the refineries. Resistance against
other government pressures by the oil companies culminated in confis-
cation of the US oil properties and other properties of 164 US con-
cerns. The refinery of the Shell Oil Company, a non-US firm, was not
confiscated but does continue under Cuban government control.
The demand for petroleum, crude oil and products, in Cuba in 1961
was about 77,000 barrels per day (bpd), a rate similar to that of Spain
or Egypt and about one-half of that of Communist China. About one-half
* The estimates and conclusions in this publication represent the best
judgment of this Office as of 15 January 1962.
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of the total demand in recent years has been for fuel oil, and almost
one-half of the total supply was consumed by the transport sector.
Of the six refineries in Cuba, only the Esso, Shell, and Texaco
plants are of commercial importance. The total capacity of these
three plants was about 83,000 bpd, which was more than sufficient to
satisfy Cuba's demand. Refined products had been exported to markets
in the West Indies and Central America, but the supply of these markets
was shifted from Cuba when the properties of the oil companies were
expropriated. The use of Soviet crude instead of Venezuelan, for
which the refineries were designed, together with a lack of proper
replacement parts and materials, probably has had a damaging effect
on the refineries. It will be some time before the cumulative damage
can be measured, but the quantity of crude being delivered to Cuba
suggests that the damage after 18 months has not been too severe.
Future deliveries of oil to Cuba will give an indication of the per-
formance of the refineries as well as a measure of the level of eco-
nomic activity.
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I. Introduction
The domestic resources of primary energy in Cuba are negligible.
There are no known deposits of coal, and the deposits of lignite and
peat are small, occurring in scattered and inaccessible locations.
The hydroelectric potential is insignificant, and the prospects for
the discovery of crude oil in commercial quantities are unfavorable.
In the period immediately before the Castro revolution, imported
petroleum provided Cuba with about one-half of the total supply of
energy from primary sources, and bagasse* supplied practically all of
the remainder. The output of bagasse, therefore, is dependent on the
level of activity in the sugar industry. Coal makes a negligible
contribution to the supply of energy in Cuba.
Three foreign oil companies, Esso, Shell, and Texaco, supplied
most of the oil imported, refined, and marketed in Cuba at the time
that Castro came to power in January 1959. Early in 1960 the regime
made serious attempts to change the old order. The Soviet-Cuban Com-
mercial Agreement signed on 13 February 1960 provided for the supply
of crude oil by the USSR. In May 1960 the government of Cuba requested
that Esso, Shell, and Texaco process Soviet crude oil in their refin-
eries. The government exerted other pressures on the foreign oil
companies -- for example, threats of expropriation if the companies
failed to maintain the level of imports of oil in spite of the failure
of the government to pay its debt to the companies, of price controls,
and of refusals to permit exchange remittances to cover imports of
oil and to permit foreigners to occupy certain key jobs in the industry.
Resisting these pressures, the oil companies refused to refine
Soviet crude. Consequently, the government took control of the refin-
eries by intervention on 30 June 1960. The properties of the US oil
companies were confiscated on 25 October 1960 as part of Cuban Law
Decree 85, which nationalized 164+ US companies. The Shell refinery
continues under intervention but has not been expropriated formally.
Since mid-1960, countries of the Soviet Bloc, principally the USSR
and Rumania, have been the sole source of oil for Cuba.
II. Administration
The petroleum industry in Cuba is administered by the Cuban Petro-
leum Institute (ICP), which was created in 1960 as an agency of the
* Bagasse is a fibrous, combustible waste product of the refining of
sugar and is used exclusively by the sugar industry for boiler fuel.
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Industrial Department of the National Institute for Agrarian Reform
(INRA) and subsequently transferred to the Ministry of Industries.
The ICP has complete responsibility for all phases of the petroleum
industry from exploration to marketing. All plans for the industry,
however, are subject to the approval of the National Planning Board.
There is evidence that Ernesto (Che) Guevara, as Minister of Indus-
tries, actually makes policy decisions for the ICP.
Alfonso Gutierrez had headed the ICP as Director General from its
inception in 1960. Gutierrez, a Mexican freelance oil specialist,
previously was affiliated with Petroleos Mexicanos (PEMEX), the state-
owned oil monopoly in Mexico. Gutierrez resigned as head of ICP in
September 1961 and reestablished himself in private business in Mexico
City. His successor has not been identified.
The managerial structure of the ICP as of November 1961 consisted
of the following:
1.
Excutive Board composed of
a.
b.
President, who also was the chief of the Industriali-
zation Department of INRA
Director General
2.
Board of Directors (Six)
3.
Subdirectors for
a.
Production:
Alberto Bozzolo
b.
Marketing :
Onelio Pino
c.
Refining :
Salvador Salo
d.
Accounting:
Eugenio Latour Manzilla
e.
Personnel :
Melba Hernandez
III. Exploration and Production
The earliest recorded discovery of oil in Cuba was in Habana Prov-
ince in 1864. From then until 1954, only three small fields --
Bacuranao in Habana Province and Motembo and Jarahueca in Las Villas
Province -- had been discovered.*
The Jatibonico field in Camaguey Province was Cuba's most important
discovery. Although small by normal commercial standards, this dis-
covery in 1954 stimulated interest in Cuba's possible oil resources.
At the end of 1956, about 36 companies, about one-third of them Cuban,
* For locations of oilfields and other petroleum facilities, see the
map, inside back cover.
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were exploring for oil. Since 1952, however, only four small discoveries
have been made, and all of these were in the area of the Bacuranao field
near the city of Havana. Production of crude oil from the six producing
fields in 1959 and 1960 is shown in Table 1.
Cuba:
Production of Crude Oil
1959-60
Barrels per Day
Oilfield
1959
1960 a/.
Cruz Verde
60
30
Guanabo
41
18
Jarahueca
27
27
Jatibonico
373
293
Motembo
8
7
Santa Maria
25
15
Total
534
390
a. The rate of production for 1960 is esti-
mated on the basis of data published for the
first 6 months.
Production shown in the table represents less than 1 percent of the
daily demand for oil in Cuba. Production in 1961 probably did not ex-
ceed that in 1960.
There are no realistic estimates of proved crude oil reserves in
Cuba, but it is unlikely that reserves exceed 2 million barrels, which,
in terms of world reserves or Cuba's needs, is negligible. The ratio
of 1960 reserves to production is about 14 to 1. A similar ratio exists
in the US, but the absolute reserves in the US are about 32 billion bar-
rels. A Cuban oil prospector who claims to have drilled more than 400
wells in Cuba since 1929 insists that Cuba never will become an oil-
producing country. He indicated that seismic movements over the years
have destroyed oil deposits. Deposits of natural gas of sufficient size
to justify commercial exploitation have not been discovered.
By the end of 1959, all private exploratory work in Cuba had ceased,
and 1 year later all private oil concessions had been canceled. At the
time of the intervention the ICP had custody of a total of 12 drilling
rigs, one-half of which were being cannibalized for parts to keep the
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other half operational. Although oil technicians from the Soviet Bloc
have arrived in Cuba, there is no evidence that any Bloc drilling equip-
ment has been delivered. The level of exploratory work now being done
is not known, but it is unlikely that any discoveries of crude oil in
commercial quantities will be made in the near future. A report that
the Cubans will drill 36 wells for a total of 248,000 feet in 1962 is
discounted as being inordinately ambitious.
IV. Refining
The refining capacity in Cuba on 1 January 1960 is shown in Table
2.*
Only the three foreign-owned refineries -- Esso, Shell, and Texaco --
are
of commercial importance and warrant discussion in detail. The small
topping plants at Bacuranao and Cotorro in Habana Province serve the
local oilfields. The other small plant at Cabaiguan in Las Villas Prov-
ince was to be moved to Cienfuegos to form the basis for a new larger
refinery, but work on this project had not been started as of early 1961.
-Following the refusal of Esso, Shell, and Texaco to refine Soviet
crude oil, the Cuban government took temporary control of the refineries
by intervention in June 1960. This control was made permanent in October.
1960, when the oil properties of Esso and Texaco were expropriated and
nationalized. The Shell plant has not formally been expropriated, al-
though it continues to be controlled under the original intervention.
The Esso and Shell refineries in Havana subsequently were renamed the
Nico Lopez Refinery and are operated as a single complex. The Texaco
refinery at Santiago de Cuba was renamed the Hermanos Diaz Refinery.
The Cuban refineries were designed to operate on crude oil from the
Carribbean area, principally from Venezuela. They were able to produce
a full line of refined products, including aircraft fuels, but there
were no facilities for the manufacture of lubricating oils. The partic-
ular Venezuelan crude usually supplied -- Oficina -- was low in salt,
sulfur, and wax. Crude oil supplied by the USSR since mid-1960, al-
though of generally acceptable quality, contained more salt and sulfur
than would normally be introduced into the refinery. There were no
desalters in the refineries, and the combination of salt and sulfur
precipitated operational and maintenance problems.
There were continuing reports of the effects of corrosion attribut-
able to the Soviet crudes. Moreover, there were reports of operating
difficulties attributable to the loss of skilled personnel. These
problems, although not completely disabling, appear to have resulted in
a moderate reduction in crude oil throughput in the refinery. The quan-
tity of crude oil supplied by the Soviet Bloc since mid-1960 was at the
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Cuba: Refining Capacity
1 January 1960
Thousand Barrels per Day
Cracking
Crude
Catalytic
Refinery
Distillation
Catalytic
Thermal
Reforming Desulfurization
Esso
36
13 J
2.5 1 4.7 J
Shell
27
5.0 J
Texaco
20
3.3 it 4.1 e/
Cabaiguan
2
0.6
Bacuranao
Negl.
Cotorro
Negl.
Total
85
13
0.6
10.8 8.8
a. Fluid catalytic cracking.
b. Powerformer.
c. Hydrofiner.
d. Platformer.
e. Hydrotreater.
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rate of about 60,000 bpd, whereas crude was imported at the rate of about
70,000 bpd in 1959. This reduction was offset by increased imports of
products.
The difficulty in obtaining alumina/silica catalyst* for the cracking
unit of the Esso refinery has resulted in a reduction in the amount of
liquefied petroleum gas (LPG) available for curing tobacco during the
harvest. LPG also is used widely as household fuel and to a limited ex-
tent in industry.
The difficulty in obtaining platinum catalyst for the catalytic re-
forming units in the Esso and Texaco plants has resulted in a deficiency
in production of hydrogen, which is essential to the operation of the
associated desulfurization units. When distillates from Soviet crudes
are not desulfurized, the quality of gasolines and distillate fuels is
impaired. Moreover, failure to reduce the sulfur content in gasoline
to a minimum results in. increased need for relatively costly tetraethyl
lead (TEL) to improve the octane quality.
Some of the obstacles that hindered operation of the refineries in
the period immediately after the expropriation have since been overcome.
The deleterious effect of the prolonged use of Soviet crude oil coupled
with the effects of poor maintenance resulting from the lack of replace-
ment parts and equipment, however, probably will reduce further the ca-
pability of the refineries to produce products of suitable quality in
adequate quantities. The level of the deliveries of crude oil to Cuba
will serve as an indication of the level of operation of the Cuban re-
fineries.
V. Demand
The total demand for petroleum in Cuba in 1961, based on observed
imports of crude oil and products, was about 28 million barrels, equiva-
lent to a rate of about 77,000 bpd. This rate represents an increase of
about 5 percent in comparison with the estimated demand for 1960. The
total civil and military demand for petroleum, by products, for the years
1958-60 is shown in Table 3.** The demand for oil in 1960 was estimated
in mid-1960 by the oil companies at 73,000 bpd, and no subsequent reports
on either civil or military demand are available. The total shipments
of crude oil and products to Cuba from the Soviet Bloc in the last half
of 1960 were at a higher rate, about 80,000 bpd, and may reflect (1) a
more generous estimate of demand by the new regime or (2) an increased
demand by the military.
* The details of Cuba's dependence on outside sources for the supply of
essential equipment and materials for the refineries are discussed in
Appendix B.
** Table 3 follows in Appendix A, p. 13, below.
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About one-half of the total demand for petroleum products in Cuba is
for residual fuel oil, a demand that would be expected where there is a
lack of coal or other solid fuels. Gasoline and diesel fuel, used ex-
tensively in trucks and buses, represent almost -1-O percent of the total
demand for petroleum products. Other countries, such as those in Western
Europe where substitute fuels are available, can convert to the use of
substitutes when supplies of petroleum are jeopardized, but it is unlikely
that there will be much substitution of other fuels for petroleum in Cuba.
The sources of coal, excluding the former suppliers in the US, are no
closer than the suppliers of oil in the USSR or other countries of the
Soviet Bloc. Considerable time and investment would be required to con-
vert oil-burning equipment to the use of solid fuels or gas.
The relative demand for specific petroleum products by principal type
of consumer and the share that each type represented of the total demand
in 1958, the last year for which such detailed data are available, are
shown in Table 4.* The transport sector, which consumed virtually all
of the gasoline and jet fuel and more than 80 percent of the fuel oils
(diesel and residual) also consumed more than 40 percent of all the petro-
leum products. Industry and electric power were the next largest con-
sumers in the economy. In each of these two sectors, fuel oil was the
principal product consumed.
The data for 1958 are considered to represent the demand for petroleum
under "normal" circumstances. It is acknowledged that distortions in this
pattern have occurred since mid-1960, with more products undoubtedly being
diverted to support the military establishment in Cuba. This diversion
may explain the apparent contradiction of increased supplies of petroleum
in the face of reported internal economic decline. In any event the pat-
tern of demand shown in Table 4 depicts the acute dependence of all ele-
ments of the economy on imported petroleum.
VI. Foreign Trade
The composition of imports of petroleum for the years 1958-61 is shown
in Table 5.** Before the middle of 1960, all of Cuba's imports of petro-
leum were provided from sources in the Western Hemisphere. About 95 per-
cent of the total imports came from suppliers in the Caribbean area, prin-
cipally Venezuela, and the remainder came from the US. Exports to Cuba
represented about 3 percent of Venezuela's total exports in both 1958
and 1959.
Under the terms of the Soviet-Cuban Commercial Agreement, the Cubans
indicated a desire to import from the USSR in 1960 the equivalent of about
Table-follows in Appendix A, p. 14, below.
Table 5 follows in Appendix A, p. 15, below.
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30,000 bpd of crude oil, or about one-half of total Cuban imports. Sub-
sequent to the Cuban intervention in the foreign refineries in June 1960,
all imports of petroleum into Cuba have originated in the Soviet Bloc,
principally the USSR. The composition of Cuban imports from the Bloc in
1960 and 1961 is shown in Table 6.* There have been reports that the
USSR has approached representatives of Venezuela regarding resumption of
exports of oil from Venezuela to Cuba. Available information suggests,
however, that there will be no reduction in the amount of oil that the
Bloc is prepared to ship to Cuba in 1962. Reduction of economic activity
in Cuba, which would affect the internal demand for petroleum, probably
would be reflected in the quantity of petroleum that the Bloc would pro-
vide.
Cuba has no oceangoing tankers and is dependent on outside sources
for tankers. The following tabulation shows the percentage composition
by flag of the tankers employed in the delivery of oil to Cuba since
mid-1960:
1960 1961
Flag
(6 months)
(12 months)
Soviet
50
42
Satellite
4
1
Free World
46
57
Rather sizable quantities of products -- equivalent to about 20 per-
cent of total Cuban imports both in 1958 and in 1959 -- were exported
from Cuba to countries of the West Indies and Central America. These
markets had been developed by the oil companies and were lost to Cuba
when the Cuban government intervened in the foreign companies.
* Table 6 follows in Appendix A, p. 16, below.
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APPENDIX A
STATISTICAL TABLES
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Table 3
Cuba: Estimated Domestic Demand for Petroleum Products a/
1958-61
1958
1959
1960
61
1
9
Quantity
Percent
Quantity
Percent
Quantit
Percent
ti
y
Quan
ty J
Gasoline
6,272
27.2
6,821
27.6
6,992
26.1
N.A.
Aviation
277
1.2
245
1.0
187
0.7
N.A.
Motor
5,995
26.0
6,576
26.6
6,805
25.4
N.A.
Jet fuel
55
0.2
98
0.4
186
0.7
N.A.
Kerosine
1,039
4.5
1,138
4.6
1,218
4.5
N.A.
Diesel fuel oil
3,026
13.2
3,210
13.0
3,371
12.6
N.A.
Residual fuel oil
L
b
11,683
50.7
12,368
50.0
13,846
51.6
N.A.
u
ricants
226
1.0
249
1.0
259
1.0
N.A.
Other
732
3.2
840
3.4
950
3.5
N.A.
Total
23,033
100.0
24,724
100.0
26
822
100
0
28
12
,
.
,
7
Barrels per day
63
68
73
77
a. Quantities have been rounded to the nearest thousand barrels.
b. The quantity shown for 1961 represents the total observed shipments of crude oil and products from the
Soviet Bloc and excludes nominal quantities of crude oil from domestic sources.
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Table 4
Cuba: Percentage Distribution of Domestic Demand for Petroleum Products
by Principal Consumer and Type of Product
1958
Aviation
Motor
Jet
Diesel
Residual
Total
sumer
C
Gasoline
Gasoline
Fuel
Kerosine
Fuel Oil
Fuel Oil
Lubricants
Other
Products
on
Transport a/
100.0
99.0
100.0
0
70.0
11.3
39.9
0
42.5
Automotive
55.5
0
Rail
13.8
10.0
Bunker
0.7
1.3
Agriculture
0
0
0
0
20.0
0
27.2
0
2.9
Electric power
0
0
0
0
6.5
36.0
1.8
0
19.1
Industry
0
1.0
0
0
3.5
52.7
31.1
12.8
28.2
Mining
17.3
Other
35.4
Household
0
0
100.0
0
0
0
35.9
5.7
Other
0
0
0
0
0
0
51.3
1.6
0
100
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
.
Including
in addition to those subcategories listed, other modes of transport.
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Cuba: Foreign Trade in Crude Oil and Petroleum Products a/
1958-61
1958
Imports 25,755 4,392 30,147
Exports 0 6,437 6,437
Net imports 25,755 -2,045 23,710
1959
Imports 25, 402 4,3 98 29, 800
Exports 0 5,000 5,000
Net imports 25,402 -602
1960 J
Net imports 24,204
Net imports
20,584
3,700
1961
7, 543
24, 800
27,904
28,127
25X1
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 Approved For Release 2005 1b?t k DP79TO1049AO02400030001-1
Table 6
Cuba: Estimated Imports of Crude Oil and Petroleum Products from the Soviet Bloc a/
1960-61
Thousand Barrels
1960 -c/ 1961
Commodity USSR Rumania Total Bloc USSR Rumania Total Bloc
Gasoline 287 114 401 693 0 693
Kerosine 0 153 153 199 0 199
Diesel fuel oil 219 41 260 969 77 1,046
Residual fuel oil 2,412 71 2,483 5,566 0 5,566
Lubricants 83 0 83 39 0 39
Total products 3,001 379 3,380 7,466 77 7j543
Crude oil 11,003 0 11,003 20,584 0 20,584
Grand total 14, 004 379 14,383 28,050 Y7 28,127
25X1
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A
DEMAND FOR PARTS AND RELATED MATERIALS FOR THE MAINTENANCE
AND THE OPERATION OF THE CUBAN PETROLEUM INDUSTRY
Cuba probably can maintain and operate its petroleum industry equip-
ment by using domestic and Soviet Bloc sources of supply. The con-
tinued operation of the three important refineries in Cuba, however,
will become increasingly difficult unless sources of supply from the
Free world are available. Dependence on supplies from the Free World
for essential materials and equipment for the refineries represents
the most important single economic vulnerability of Cuba's petroleum
industry.
Many of the difficulties in the refineries were reported im-
mediately after the expropriation and may have been exaggerated. In
spite of such exaggerations, the cumulative deleterious effect of run-
ning Soviet crude oil during the past 18 months in refineries designed
to operate on significantly different crude oil would be severe. The
absence of recent reports of serious difficulties and the high level
of Soviet crude oil inputs, however, suggest that current problems
are not disabling. Although the refineries might be disabled for
lack of replacement parts and materials, the economy could shift to
the imports of petroleum products rather than that of crude oil and
thus continue to function.
There is a continuing need in the Cuban refineries for the fol-
lowing items that are not available from domestic sources.
1. Parts and Equipment
a. Cuba has an acute need for spare parts for refinery instruments,
most of which are of US manufacture or design. The USSR has indicated
that it could not provide parts for these instruments but could replace
a complete instrument with one of Soviet manufacture. Cuba has made
attempts to procure spare parts from Canada and the US.
b. The Soviet Bloc manufactures valves that are similar to, but do
not conform to, standards of the American Petroleum Institute (API) or
the American Standards Association (ASA). Although the Bloc cannot pro-
vide replacement parts for the valves in the Cuban refineries, it can
provide complete value assemblies.
c. Cuba is reported to have approached suppliers from the Free
World for parts for gas turbines and pumps.
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d. Efforts have been made to procure carbon steel tubes of small
diameter for heat exchangers and condensers from suppliers in Western
Europe.
e. Ball bearings for a pump were received from Canada because the
Bloc could not supply them.
a. Cuba depends on imports of tetraethyl lead (TEL) for use in im-
proving the quality of gasoline. Although the USSR, which has been de-
ficient in the supply of TEL, provided some to Cuba in 1960, it was
reported that no further shipments would be made until 1962. The manu-
facture of TEL in the Free World is limited to only a few countries
outside the US. In the Bloc, both the USSR and East Germany manufacture
TEL. TEL is important to the manufacture of gasoline, and there are no
known suitable substitutes, -although the Cubans have resorted to the
use of alcohol as an expedient.
b. The high salt content of Soviet crude oil causes operating
difficulties in the refineries, some of which can be reduced by the
injection of ammonia into the system. Cuba has been reported to be
seeking supplies of ammonia in countries of the Free World.
c. Although Cuba does not manufacture lubricating oils, it does
obtain and blend raw materials to obtain finished lube oils. In
the course of the blending, proprietary chemicals are added to obtain
certainquality features in the finished products. Cuba has been
having difficulty in obtaining such chemical additives, most of
which are manufactured in the US or under US licenseelsewhere in the
Free World.
d. The refineries use alumina/silica and platinum catalysts. It
was reported that the alumina catalyst imported from the USSR was un-
acceptable and that the catalyst imported from the Netherlands was
also substandard. Platinum catalyst is manufactured only in the US.
Attempts also have been made to procure catalysts from or through the
US, West Germany, the UK, and Canada.
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STORAGE AND DISTRIBUTION FACILITIES OF THE CUBAN PETROLEUM INDUSTRY
The location, the capacity, and the services of the principal bulk
oil storage facilities in Cuba are shown in Table 7.* The bulk oil
storage facilities by principal user -- that is, refineries, nonre-
finery oil company, and nonoil company -- are summarized in Table 8.**
It is noteworthy that about 25 percent of the total storage in service
for products is located in sugar mills, powerplants, and other indus-
tries and thus is considered as nonoil company storage. Moreover,
about 40 percent of the total is located in refineries or is used for re-
finery operations and therefore is not normally available for storage
purposes. Thus the figure for total storage overstates the quantities
available for distribution or military allocation of the oil.
The crude oil storage when completely full would represent about
20 days of supply based on the rate of consumption in 1961. This level
of supply, 20 days, was not such a critical consideration when the
sailing time from the source of crude oil supply in Venezuela was only
about 5 days. The sailing time from the Black Sea, however, represents
about 20 days. The Cubans apparently recognize the danger inherent in
long supply lines and obligated about $1.5 million in Cuba's budget
for 1962 for construction of additional crude oil storage. The nonre-
finery storage in Cuba represents about 60 days of supply at the rate
of consumption in 1961. There are no pipelines in Cuba, and all in-
ternal land transport is effected by rail and truck. The rail tank
car park as of 30 June 1959 consisted of 80 cars for oil service, 60
for molasses, and 34+ for water. Cuba has a few small non-self-propelled
barges for the coastal movement of oil but has only one tanker for
coastal shipping -- the Playa Giron (formerly the Soviet vessel
Syurkum) -- of 750 deadweight tons.
Table 7 follows on p. 21, below.
Table 8 follows on p. 31, below.
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Table 7
Cuba: Principal Bulk Oil Storage Facilities
1 January 1960
Location: terminal or site
Ensenada de Guasabacoa
Conipania Cubana de Petroleo
Compania Petrolera Shell-Mex de Cuba, S.A.
Sinclair Cuba Oil Co., S.A.
Esso (Belot)
Esso Standard Oil Co.~ S.A. (Belot)
(Nico Lopez Refinery
Texaco
Texas Co. (West Indies), Ltd.
Shell Belot Refinery (Nico Lopez Refinery)
Coordinates
North West Crude Oil Clean Dirty Total
23008' 82021'
10.6 158.9 169.5
172.5 172.5
14o.6 165.0 305.6
68o 1,271.64 281.2 1,552.84
6oo
Capacity
(Thousand Barrels)
94.9 94.9
675.99 427.5 1,103.49
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Cuba: Principal Bulk Oil Storage Facilities
1 January 1960
(Continued)
Capacity
(Thousand Barrels)
Location: terminal or site
Habana (Continued)
Tallapiedra Consolidados
Ebasco
Melones
Ebasco
Regla Plant
Ebasco
Santiago de Cuba
Compania Cubana de Electricidad
Coordinates
West Crude Oil
200 01' 750 50'
S-E-C-R-E-T
Products
Clean Dirt Total
67.45 67.45
82.87 82.87
30.00 30.00
56.20 56.20
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Table 7
(Continued)
Capacity
(Thousand Barrels)
Coordinates Products
Location: terminal or site North West Crude Oil Clean Dirty Total
Santiago de Cuba (Continued)
Male con Terminal
Esso Standard Oil Co., S.A. (Esso S.A.)
Ferrocarriles Consolidados de Cuba
Shell-Mex Co. of Cuba
Texas Co. (West Indies), Ltd.
Texas Co. (West Indies), Ltd.
(Hermanos Diaz Refinery)
Punta Jutias
Cementos Nacionales S.A.
Matanzas
Sinclair
Sinclair Cuba Oil Co., S.A.
23?03' 8103+'
165.o4 43.19 208.23
9.6 9.6
103.7+ 103.7+
52.2 59 111.2
3+2.9 3+0.2 186.8 527.0
165 165
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Table 7
Cuba: Principal Bulk Oil Storage Facilities
1 January 1960
(Continued)
Coordinates
Capacity
(Thousand Barrels)
LV4:AV1{..~J.J: VGJ. +++l aJC.i.L ''.
Matanzas (Continued)
Texaco
Texas Co. (West Indies), Ltd.
West India
West India Oil Distributing Co., Ltd.
Cienfuegos
Punta Arenas
Texas Co. (West Indies), Ltd.
Punta Majagua
Esso Standard Oil Co. (Cuba Division)
Punta Verde
Sinclair Cuba Oil Co., S.A.
22009' 80027'
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68.5 192 260.5
Products
64 64
lo6.8 lo6.8
74.9 110 184.9
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Table 7
(Continued)
Capacity
(Thousand Barrels)
Coordinates Products
Location: terminal or site North West Crude Oil Clean Dirty Total
Antilla
Antilla Terminal
Ferrocarriles Consolidados de Cuba
Preston Terminal
United Fruit Sugar Company
Nuevitas
Pastelillo
Esso Standard Oil Co., S.A. (Esso S.A.)
Sinclair Cuba Oil Co., S.A.
Compania de Ferrocarriles de Cuba
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20 1.8' 75 1.2'
21 33' 77 15'
x-7.8 x+7.8
130 130
111.3 110 221.3
165.3 165.3
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Cuba: Principal Bulk Oil Storage Facilities
1 January 1960
(Continued)
Capacity
(Thousand Barrels)
Coordinates Production
Location: terminal or site North West Crude Oil Clean Dirty Total
Guantanamo
Boqueron
Esso Standard Oil Co.
Desco
Guantanamo Sugar Company
Banes
United Fruit
United Fruit Sugar Company
Cardenas
Arechabala
Jose Arechabala, S.A.
19?55'
75?09'
49.5 55 104.5
2055' 75?42'
23?03' 81?12'
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47 47
28.6 28.6
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Table 7
(Continued)
Capacity
(Thousand Barrels)
Location: terminal or site North West Crude Oil Clean Dirty Total
Casilda
Adjacent to wharfs
Central Oil Co.
Ceiba Hueca
Santa Regina
Compania Azucarera Santa Regina
Ensenada Boca Grande
Unknown
Baragua Sugar Mill
Jucaro
1/2 mile west of town
Compania Azucarera Atlantica del Golfo
2105' 79?59'
20014' 77?19'
21?33' 78040'
21037' 78?51'
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90 32.8 45 77.8
31.3 31.3
23.8 23.8
23.8 23.8
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Cuba: Principal Bulk Oil Storage Facilities
1 January 1950
(Continued)
Capacity
(Thousand Barrels)
Coordinates Products
Location: terminal or site North West Crude Oil Clean Dirty Total
La Isabela
Isabela de Sagua
Compania Distribuidora Villaclara
Lengua de Pajaros
Adjacent to nickel company
Nicaro Nickel Co.
Manati
Manati
Manati Sugar Co.
22?57' 80?01'
20?43' 75?33'
21?24' 75049'
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11.4 1104
10 385 395
55 55
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Table 7
(Continued)
Capacity
(Thousand Barrels)
Coordinates Products
Location: terminal or site North West Crude Oil Clean Dirty Total
Manzanillo
South of piers
Unknown
Marie].
Unknown
Cuban Portland Cement
Palo Alto
1/4 mile west of main pier
Stenard Sugar Company
Puerto Cayo Moa
Moa Bay
Moa Bay Mining Co.
20021' 77?07'
23?01' 82?45'
21036t 78?59'
20?)+0' 74056'
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6.x-5 6.x+5
160 160
23.8 23.8
33.5 188 221.5
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Cuba: Principal Bulk Oil Storage Facilities
1 January 1960
Capacity
(Thousand Barrels)
Coordinates Products
Location: terminal or site North West Crude Oil Clean Dirty Total
Puerto Padre
Cayo Juan Ciaro
Cuban American Sugar Co.
Santa Lucia
Next to copper company
Copper company (name unknown)
Tanamo
Punta Gorda
Compania Azucarera Tanamo de Cuba
Puerto Vita
Unknown
Compania Santa Lucia
Total
21?14' 76033'
22?41' 83?58'
20?42' 75?20'
21005' 75?57'
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19.9 156 175.9
50 50
14.85 47.7 62.55
12.2 12.2
1,712.9 3,454.06 4,307.26 7,761.32
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Cuba: Bulk Oil Storage by User Service
1 January 1960
Category of User Crude Oil Products
Refineries 1,712.9 3,183.33
Oil companies
less refineries
0
2,620.52
Nonoil companies
0
1,957.)+7
Total
1,712.9
7,761.32
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SECRET
;Rig
SECRET
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