|Ongc Videsh Announces New Acquisiton In Republic Of Cuba|
19 September, 2005
ONGC Videsh Ltd. (“OVL”) has entered into an agreement on September 15, 2005 with Repsol-YPF of Spain to acquire 30% participating interest in the deep water exploration Blocks 25, 26, 27, 28, 29, 36 and part of Block 35 in the Republic of Cuba. The acquisition will be completed after formalization of the contract by the Cuban Government. The other partners in the Blocks are Repsol-YPF (40%) and Norsk Hydro of Norway (30%). Repsol-YPF is the operator.
The acquisition marks OVL’s first foray into the Cuban oil and gas industry. The Blocks are spread over an area of nearly 12000 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 hydrocarbons.
These Blocks are in the third exploration period. Work Program during this period includes acquisition of 3000 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 a good potential and is especially significant for OVL as it would open door for other opportunities in the Latin American Hydrocarbon Sector. With this acquisition, OVL is now present in 13 countries.” said Subir Raha, Chairman, OVL.