Melbana Energy Limited (ASX: MAY) today, 18 June 2026, provided an operational update regarding its Block 9 Production Sharing Contract (PSC) onshore Cuba. Melbana Energy is an Australian oil and gas company focused on exploration and development opportunities. The company holds a 30% interest and operates the Cuban PSC. This update follows the U.S. Department of State’s designation of Cuba’s state-owned oil and gas company, Union Cuba-Petroleo (CUPET), as a Specially Designated National (SDN) on 11 June 2026, under President’s Executive Order 14404.
An SDN designation generally prohibits a U.S. entity from transacting with the designated party and may lead to secondary sanctions on parties from other jurisdictions. While Melbana itself or any of its subsidiaries have not been designated as an SDN, CUPET serves as its contractual counterparty for the PSC. Operations under the PSC had previously ceased in late 2025 due to non-payment by a joint operations partner, leading to expatriate personnel leaving Cuba. Following CUPET’s SDN designation, Melbana has immediately suspended its direct participation in financial, technical, or administrative support of the PSC, informing CUPET of this decision.
The company is undertaking a detailed review of these developments and continues to seek external advice on the Executive Order’s implications for its Cuban operations. Engaging legal counsel and sanctions experts, Melbana is assessing the scope and effect of CUPET’s SDN designation on the PSC and potential consequences for its business. As of this announcement, Melbana has not reached any conclusions or determined a definitive course of action, noting the highly technical nature of the applicable sanctions framework. Melbana’s portfolio of exploration licences in Australia remains unaffected by this Executive Order. The company expects to provide further updates in accordance with its continuous disclosure obligations.
