OVL ties up with Cuba for oil exploration

OVL ties up with Cuba for oil exploration
PRESS TRUST OF INDIA
Posted online: Monday, September 11, 2006 at 2005 hours IST

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NEW DELHI, SEPTEMBER 11: ONGC Videsh Ltd, the overseas arm of Oil and
Natural Gas Corp, has entered into a product sharing agreement with Cuba
for deep-water oil exploration in the Gulf of Mexico.

According to the deal with state-owned oil company, CUPET, ONGC will
explore blocks 'N-34' and 'N-35', which cover an area of 4,300 sq.Km

The blocks are located in the exclusive economic zone of Cuba and are
estimated to hold considerable hydrocarbon resources.

The exploration period is spread over a period of six years in three
phases. During the first phase of exploration - acquisition, processing
and interpretation of seismic data would be carried out for
identification of prospects.

ONGC already has a 30 per cent interest in six other blocks in which
Norway's Nosrk Hydro also has 30 per cent interest and Spain's Repsol
YPS 40 per cent.

Officials of the state-run Cuba Petroleos (CUPET) say a total of six
companies have signed exploration deals for 16 blocks in the Gulf of Mexico.

Cuba produces 60,000 barrels per day of poor-quality oil and imports
about 98,000 bpd of oil and derivatives from its ally Venezuela.

China's giant oil and gas company Sinopec Corp. Signed an agreement last
year to produce heavy oil with Cuba Petroleum in Cuba's westernmost
Pinar del Rio province from on-shore wells.

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