Eric Watkins
Oil Diplomacy Editor

LOS ANGELES, Sept. 22 -- Cuba and Venezuela are considering the reactivation of a 189-km pipeline linking Cuba's northern and southern coasts, making it easier to distribute oil from their jointly operated refinery in the city of Cienfuegos.

Cuba's official Prensa Latina news agency, citing Jose Suarez, a manager with the joint venture, said the pipeline would extend from the city of Matanzas, on Cuba's northern coast, to the refinery in Cienfuegos, which is on the island's south coast about 250 km from Havana.
Suarez said the pipeline, which has been inactive for more than 15 years, was being inspected for "possible damage" and that the JV would free up space on two piers at the Cienfuegos refinery.

The Cienfuegos refinery, constructed in the 1980s and closed in 1995 due to the collapse of the Soviet Union, was restarted last December after a $166 million renovation project. Since January, it has processed some 72,000 b/d of crude oil.

The Cienfuegos refinery JV was formed in April 2006 by the countries' respective state-owned firms Cuba Petroleo, which has a 51% stake, and Petroleos de Venezuela SA, which holds the remaining 49% stake.