Melbana Delays Amistad-11 Well After Sonangol Misses Payments
Melbana Energy has postponed drilling the Amistad-11 well in Cuba after joint venture partner Sonangol failed to meet payment obligations, triggering a formal Notice of Default.
- Amistad-11 drilling deferred due to Sonangol’s funding shortfall
- Sonangol unable to remit payments within 2025 budget year
- Melbana issues Notice of Default under Joint Operating Agreement
- Potential forced assignment of Sonangol’s 70% interest if unresolved
- Revised drilling schedule and financial impact remain uncertain
Operational Setback in Cuba
Melbana Energy Limited, operator and 30% stakeholder in the Block 9 Production Sharing Contract (PSC) onshore Cuba, has announced a significant delay in its drilling program. The Amistad-11 well, a key project for the company, will not proceed as planned this year following a funding impasse with its joint venture partner, Sonangol Pesquisa e Produção SA, which holds the remaining 70% interest.
Despite completing rig mobilisation and securing final permits by late November 2025, Melbana has been unable to commence drilling due to Sonangol’s failure to pay outstanding cash calls. Sonangol recently informed Melbana that it cannot transfer further funds within the current calendar year, even though it had previously approved the revised budget for drilling in 2025.
Financial and Contractual Implications
In response, Melbana has initiated demobilisation of personnel and equipment, deeming it more economical than maintaining the rig on standby. More critically, the company has issued a Notice of Default to Sonangol under the terms of their Joint Operating Agreement. This formal step sets a 60-day window for Sonangol to remedy the payment default, failing which Melbana may compel Sonangol to assign its Block 9 interest to Melbana.
This development introduces uncertainty around the timing of the Amistad-11 well spud date, which remains to be agreed upon. The delay could have wider ramifications for Melbana’s production forecasts and capital expenditure plans, as well as the dynamics of the joint venture partnership.
Strategic Outlook
Melbana’s decisive action underscores the challenges of operating in joint ventures where funding commitments are critical to project momentum. The company’s willingness to enforce contractual remedies may signal a strategic pivot to safeguard its interests in Block 9. Investors will be watching closely for Sonangol’s response and any subsequent shifts in ownership or operational control.
As the situation unfolds, Melbana’s next steps will be pivotal in determining whether the Amistad-11 well can proceed in 2026 as hoped, or if further complications arise that could impact the company’s growth trajectory in the Cuban oil sector.
Bottom Line?
Melbana’s move to enforce payment obligations sets the stage for a potentially transformative dispute in its Cuban joint venture.
Questions in the middle?
- Will Sonangol resolve the payment default within the 60-day cure period?
- How will the drilling delay affect Melbana’s 2026 production and cash flow forecasts?
- Could Melbana’s enforcement action lead to a change in Block 9 ownership structure?
