Russian Zarubezhneft hopes to ink four Cuban blocks deal in Aug

Russian Zarubezhneft hopes to ink four Cuban blocks deal in Aug
Moscow (Platts)--3Aug2009

Russian state-run oil producer Zarubezhneft said Monday it expects to
sign contracts with Cuba this month to explore and develop four blocks
there.

"Signing of the contracts is scheduled for August, after they are
approved by Cuba's government," it said.

The comments came after last week's visit by Zarubezhneft head Nikolai
Brunich to the Latin American country, as part of Russia's delegation headed
by the country's deputy prime minister Igor Sechin.

During the visit, Zarubezhneft and Cuba's national oil company Cupet
agreed on the exploration and development of four blocks, of which two
blocks
are located offshore and the two other blocks are inland.

Brunich told the Cuban partners that Zarubezhneft was ready to
begin work
at the blocks immediately after the signing of the contracts, in line
with an
agreed schedule, Zarubezhneft said.

Brunich previously said that Zarubezhneft had proposed the
establishment
of a joint venture with Cupet for exploration work at the blocks.

The two companies are also negotiating one more contract to increase
crude recovery at Cuba's Boca de Haruco, Zarubezhneft said.

The company has prepared a test-production design to increase crude
recovery at Boca de Haruco field and submitted it to the Cuban partners, a
spokeswoman with the company said.

The proposal was mainly approved by Cupet, and the contract is being
prepared for signature, she added.

OPPORTUNITIES IN ECUADOR

Separately, Zarubezhneft said the company was looking into
opportunities
to develop oil projects in Ecuador.

From Cuba, the Zarubezhneft delegation went to Ecuador for a one-day
visit, where it met with representatives of Ecuador's state-run oil company
Petroecuador, it said.

The parties have discussed options for cooperation, Zarubezhneft said.

During the meeting, Petroecuador representatives noted that many
oil and
gas projects in their country require significant investment and reliable
partners, such as Zarubezhneft, in order to be carried out successfully, the
Russia's oil producer said.

In particular, the parties have discussed the possibility to bring in
updated technology in Ecuador's oil and gas upstream sector, as well as
equipment supplies and services, it said.

Zarubezhneft did not rule out that oil and gas cooperation between
Russian and Ecuador would be on the agenda during the visit of Ecuador's
president Rafael Correa to Moscow scheduled for late October.
--Nadia Rodova, nadia_rodova@platts.com

Russian Zarubezhneft hopes to ink four Cuban blocks deal in Aug (3
August 2009)
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