ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp, will invest close to $150 million in the seven oil and gas blocks it recently acquired in Cuba.
The blocks hold more than 4 billion barrels of oil reserves.
"The blocks have huge potential and investments could be of the order of $150 million," ONGC chairman and managing director Subir Raha told reporters in New Delhi.
OVL buys 30% in 7 oil blocks in Cuba
OVL has entered into an agreement on September 15 with Repsol-YPF of Spain to acquire 30 per cent participating interest in the deepwater exploration Blocks 25, 26, 27, 28, 29, 36 and part of Block 35 in Cuba.
Spain's Repsol-YPF is the operator of the blocks with 40 per cent stake and the remaining is with Norway's Norsk Hydro.
The acquisition, which marks OVL's foray into the Cuban oil and gas industry, will be completed after formalisation of the contract by the Cuban government, he said.
"An exploratory well drilled in one of these blocks indicated presence of hydrocarbons," Raha said.
These blocks are in the third exploration period. Work program during this period includes acquisition 3000 sq km 3-D seismic data. Drilling wells on selected prospects will be decided in the next exploration phase.
"With proven presence of petroleum system in Exclusive Economic Zone, Cuba, the area has drawn attention of many international oil companies. The blocks have a good potential and are especially significant for OVL as it would open the door for other opportunities in the Latin American Hydrocarbon sector. With this acquisition, OVL is now present in 13 countries," he said.
