OVL gets Cuban nod for 30 % interest in 6 blocks

OVL gets Cuban nod for 30 % interest in 6 blocks
Thursday, 25 May , 2006, 08:55

New Delhi: The Government of Cuba has approved assignment of 30 per cent
interest in six exploratory blocks to ONGC Videsh Ltd (OVL), the
overseas arm of ONGC.

According to a company statement, OVL had entered into an agreement with
Repsil-YPF, Spain on September 15, 2005, to acquire 30 per cent
participating interest in these six blocks located in the deep waters of
the Cuba Exclusive Economic Zone. |'Black Monday' revisited|

The other partners of the blocks are Repsol-YPF as the operator (40 per
cent) and Norsk Hydro of Norway (30 per cent). | Go to Sify Business
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The blocks spreading over an area of around 12,000 square kilometres are
located in a very favourable geological set-up and are estimated to hold
considerable reserve potential, the company stated.

These blocks are in the third exploration period and currently 3-D
seismic data of these blocks is being acquired, which is likely to be
completed by June.

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 per cent interest in the six blocks marks the entry of OVL 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 Subir Raha, Chairman, ONGC group of companies.

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