ONGC VIDESH (OVL), the overseas right arm of Oil and Natural Gas Corporation (ONGC), has obtained 30% stake in five blocks in Cuba in partnership with Spains Respol -YPF. In a statement on Tuesday the state-owned company said,that" OVL entered into an agreement on September 15 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 (of stake) will be completed after formalisation of the contract by the Cuban government. "Respol- YPF is the operator with 40% stake besides OVLs 30% stake in the blocks. Above all this the third partner is Norways Norsk Hydro with the remaining 30% stake. The accomplishment marks OVLs maiden into Cuba. Subir Raha,OVL chairman said " The blocks have a good potential and this 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."
The exploration blocks are estimated to have potential reserves in excess of four billion barrels of oil and oil equivalent gas. It is spread over nearly 12,000 sq Km in the exclusive economic zone of Cuba. Than official statement, described that" One exploratory well drilled has indicated the presence of hydrocarbons."