Sherritt International Corporation has executed an agreement with the Government of Cuba to amend an existing Production-Sharing Contract (PSC) in its oil and gas business for an additional ten-year extension to March 2028. Sherritt is also awaiting final approval by Cuban ministries with respect to four new exploratory PSCs.
The amended agreement provides for the extension of the Puerto Escondido/Yumuri PSC in Cuba to allow for further development drilling in those fields. During the new ten-year term, Sherritt will be obligated to drill a minimum of seven additional wells within an initial two year period following the effective date. The extension applies to all new wells drilled following the amendment of the PSC. The PSC will terminate with respect to existing wells as of its original expiry date in March 2018.