Gazprom gets stake in blocks off North Cuba

Cuban offshore blocks.

JSC Gazprom Neft will acquire a 30% stake from Malaysia’s state Petronas in four Gulf of Mexico blocks off Cuba’s western coast.

Blocks 44, 45, 50, and 51 lie 100-200 miles west of Havana and slightly farther southwest of Key West, Fla.

The agreement is subject to approval by Cuban authorities. Gazprom said, “The possibility to work on the shelf of Cuba was initially considered by Gazprom Neft’s board of directors in early October 2010, when the board acknowledged a positive long-term outlook to the company’s activity in this region.”

Cuba’s government signed the production-sharing agreement covering the four Cuban foreland basin shelf blocks with Petronas in 2007. Petronas holds the remaining 70% interest.

The PSA provides for geological exploration on the blocks with the possibility of oil production until 2037 and gas production until 2042. Petronas has shot 2D seismic on the blocks and expects to spud the first exploratory well in 2011.

From: Oil & Gas Journal

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