The assignment of 30% interest of the six exploration Blocks 25, 26, 27, 28 29 and 30 in Cuba to ONGC Videsh Ltd. (OVL) has been approved by the Government of Republic of Cuba. Related agreements were executed with Government of Cuba on 23rd May 2006 .
OVL had, earlier, entered into an agreement with Repsil-YPF, Spain on September 15, 2005, to acquire 30% participating interest in these six blocks located in the deepwaters of Cuba Exclusive Economic Zone. The other partners of the Blocks are Repsol-YPF as the Operator (40%) and Norsk Hydro of Norway (30%). The Blocks spreading to an area of approximately 12,000 square kilometres are located in a very favourable geological set-up and is estimated to hold considerable reserve potential.
These Blocks are in the third exploration period and presently, 3-D seismic data of these blocks is being acquired, which is likely to be completed by June 2006. Drilling of exploratory wells will be taken up after detailed geo-scientific evaluation.
"Execution of agreements with the Government of Cuba for assignment of 30% interest in the six blocks marks the entry of ONGC Videsh Ltd. in the Country. In addition, OVL has already initiated actions for increased participation in upstream hydrocarbon sector of Cuba through acquisition of additional acreages", said Mr. Subir Raha, Chairman ONGC Group of Companies.