OVL strikes pact with Cuban co

NEW DELHI: Oil & Natural Gas Corporation’s (ONGC) subsidiary ONGC Videsh (OVL) has entered into a production sharing contract with Cupet, the state-owned oil company of Cuba, for two offshore exploration blocks — N-34 and N-35. While OVL will be the operator of the block, the government of Cuba has the option to take a 20% participating interest in these blocks.

“Cuba offers very promising exploration play and OVL is very pleased to enhance its investments in the country. Besides, execution of the production sharing contract (PSC) for the blocks marks the entry of OVL in Latin America as an operator,” OVL managing director RS Butola said.

OVL had earlier submitted expression of interest for these two blocks located in the deep water of Cuba offshore and negotiated the PSC. The blocks, located in an exclusive economic zone (SEZ) of Cuba, are spread over 4,300 square kms. The contracts have been signed on September 9, ’06, at Havana, it added.

The exploration period is spread over 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.