http://www.cubastandard.com/2010/11/16/petronas-expects-to-begin-offshore-drilling-in-2011/

The oil arm of Russian gas giant Gazprom bought a 30-percent stake in four offshore blocks contracted by Malaysian state company Petronas.

In making the announcement, JSC Gazprom Neft said in a press release that Petronas expects to begin exploratory drilling next year; 2D seismic surveys have been completed. A drilling platform is expected to arrive in Cuban waters early next year, where it will first be used by a consortium led by Spain’s Repsol S.A.

Last week, President Hugo Chávez announced that Venezuelan state company PdVSA will “soon” begin exploratory drilling. PdVSA’s four blocks are contiguous with Petronas’ blocks, off the western tip of Cuba. Chávez suggested to his oil minister to use a Brazilian platform.

Petronas signed a product sharing agreement for four blocks with the Cuban government in 2007, which allows for oil production through 2037 and gas production through 2042.

The additional agreement makes JSC Gazprom Neft a junior partner of Petronas in blocks 44, 45, 50 and 51. Exploration and production costs will be financed proportionally, subject to pro-rating of Petronas’ previous expenses.

“Gazprom Neft’s partnership with Petronas will enable the company to further extend its geographic reach and strengthen its position in the global market,” said Gazprom Neft Chairman Alexander Dyukov in a press release. “The offshore experience will promote the company’s growth.”

The four Petronas blocks are shown on the map online.

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This entry was posted on Tuesday, November 16th, 2010 at 10:14 am and is filed under Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Special thanks to Richard Charter