RIO DE JANEIRO -- Petrobras and Companhia Cubana de Petróleo (Cupet) have signed a joint oil exploration and production agreement for block 37 offshore northern Cuba.
Block 37 covers an area of 1,600 sq km (618 sq mi). It is between 3 and 12 km (1.8 and 7.5 mi) off the coast, at depths ranging from 500 to 1,600 m (1,640 to 5,249 ft). The block is located near the Cuban onshore oil reserves.
The exploration phase will be divided into four periods planned to last 18 to 24 months each. At the end of each period, Petrobras will assess whether or not to remain in the deal. In the event that reserves are discovered, Cupet will have the option to participate by paying for past and future investments in field exploration, development, and production.