OVL acquires 30 per cent stake in seven Cuban oil blocks
21 September 2005
New
Delhi: ONGC Videsh Ltd, the overseas arm of state-owned
Oil and Natural Gas Corp, has acquired a 30 per cent
stake in seven oil and gas blocks in Cuba, holding more
than 4 billion barrels of oil reserves.
"OVL
has entered into an agreement on September 15 with Repsol-YPF
of Spain to acquire 30 per cent participating interest
in the deepwater exploration Blocks 25, 26, 27, 28,
29, 36 and part of Block 35 in Cuba," a company
press release said in New Delhi.
The
acquisition awaits formalisation of the contract by
the Cuban government. This will be the company's first
foray into the Cuban oil and gas industry. The blocks
are spread over an area of nearly 12,000 sq. km in the
Exclusive Economic Zone of Cuba.
"The
hydrocarbon resource potential in the blocks is estimated
to be in excess of four billion barrels. One exploratory
well drilled in one of these blocks indicated presence
of hydrocarbons," the release said.
These
blocks are in the third exploration period. Work program
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.
"With proven presence of petroleum system in Exclusive Economic Zone, Cuba, the area has drawn attention of many international oil companies. The blocks have good potential and are especially significant for OVL as they would open the doors to other