ONGC Videsh Ltd (OVL) is set to make a foray into the Cuban oil and gas industry by acquiring 30 per cent participating interest in seven deep-water exploration blocks in that country. The acquisition will be completed after the Cuban government formalises the contract. | |
| The company has signed an agreement with Repsol-YPF of Spain to acquire the stake in blocks 25, 26, 27, 28, 29, 36 and part of block 35 in Cuba. |
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| Repsol-YPF holds another 40 per cent in these blocks with Norsk Hydro of Norway holding the remaining 30 per cent. Repsol-YPF operates the blocks. |
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| The blocks are spread over an area of nearly 12,000 sq km in the exclusive economic zone. The hydrocarbon resource potential is estimated to be more than of 4 billion barrels. |
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| According to an ONGC statement, drilling in an exploratory well in one of these blocks indicated the presence of hydrocarbons. These blocks are in the third exploration stage. |
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| Work programme during this period includes acquisition of 3,000 sq km, 3-D seismic data. Drilling wells on selected prospects will be decided in the next exploration phase. |
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| "With proven presence of petroleum system in exclusive economic zone, the area has drawn attention of many international oil companies. The blocks have a good potential and are especially significant for OVL because the acquisition will open the doors to other opportunities in the Latin American hydrocarbon sector" said Subir Raha, chairman, OVL, in a statement. |
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