Cuba and India sign contract for oil prospecting

THE Cuban oil enterprise CUPET and the Indian company ONGC Videsh Ltd (OVL) signed today Sunday a production contract for the prospecting and exploitation of that hydrocarbon in Cuban waters in the Gulf of Mexico, PL reports.

At the signing of the document in the presence of Yadira García, minister of basic industry, it was noted that the objective is the search for crude oil in the 4,300 square kilometers of Blocks 34 and 35 in the Cuban exclusive economic area of that zone.

The contract was signed by Fidel Rivero Prieto and R.S. Butola, the directors of CUPET and ONGC Videsh Ltd, respectively.

It was announced that the prospecting period is divided into three phases with a duration of six years.

Butola affirmed that Cuba offers a very promising prospecting potential and OVL is very pleased to increase its investment in the country.

He said that the company is already present in the hydrocarbons sector on the island via the acquisition of 30% of the participative interest in six offshore blocks belonging to the Spanish Repsol YPF Company.

Butola noted that the recently signed contract marks the entry of the Indian company into Latin America as an operator and will stimulate its activities in the region.

For his part, Rivero highlighted the signing represents a very important event for Cuban oil at the conclusion of an initial stage of joint labor.

The CUPET director spoke of the high professional level and discipline of the Indian company and its strong will to firm up cooperation agreements with the archipelago.