Gazprom Neft, Petronas deal on Cuban gas project

Gazprom Neft, an oil arm of Russia's state-run Gazprom monopoly and Malaysia’s Petroliam Nasional Bhd., Petronas entered into agreement for acquisition by Gazprom Neft of a 30 percent stake from Petronas in a project to develop four hydrocarbon blocks off Cuba, in the Gulf of Mexico.

According to Gazprom Neft officials, to become effective the agreement is to be approved by Cuban authorities, Gazprom Neft said.

“Gazprom Neft’s partnership with Petronas will enable the company to further extend its geographic reach and strengthen its position in the global market,” Gazprom Neft Chief Executive Officer Alexander Dyukov said in the statement.

Gazprom Neft in a bid to expand abroad aims at other project in Venezuela, Equatorial Guinea and Iraq. The company projected to double its output to 2 million barrels a day in 2020.

In 2007 the Cuban government and Petronas signed an agreement for development of the blocks on the Cuban shelf. The first exploration drilling is scheduled for 2011, Gazprom Neft said.