Ann: Cuba Block 9 Farmout, page-21

When successful, the company is permitted to use the money from produced oil to recover capital and operational expenditures, known as "cost oil". The remaining money is known as "profit oil", and is split between the government and the companies.

In my opinion congrats to May's management for part 1 of the deal done.   

The market has certainly shown very little support for this deal today.  Us shareholders have waited a long time for today and onwards to a binding agreement.  Unfortunately when you read between the lines, this deal is going to take MAY several years to produce income.  There will be huge upfront costs which will need to be paid for before profit is announced and distributed.  If this deal does get executed the most positive thing for MAY is the cash burn stops from Block 9 Cuba.  Not CUBA itself.
Unfortunately for MAY in general business this deal favors the Chinese hands down and MAY will relinquish full control.  

If MAY was to be judged with a deal that even half favored them - as Fidel has always said MAY needed an upfront payment in the millions on top of all costs and payments refunded.   I read MAY will get 3.5 million back in returned costs if a well produces.  MAY would have spent double this already and are still spending this per year with no income.  

DYOR- Just my debatable opinion