Cuba and Brazil sign oil agreement

The Cuban and Brazilian state-run oil companies have signed an agreement allowing Brazil to conduct explorations in Cuban waters.

The deal was signed by Rafael Arias, Cubapetroleo (Cupet) Commercial Director, and Jose Sergio Gabrielli, president of Brazil 's Petroleo Brasileiro SA, or Petrobras, in Havana on October 31.

The signing was made during a visit to Cuba on October 30-31 by Brazilian President Luiz Inacio Lula da Silva.

With an initial investment of 8 million USD, the agreement allows Petrobras to begin exploration and oil prospecting at one of the 59 offshore plots in the Gulf of Mexico that Cuba has earmarked for exploration by international companies.

Under the agreement, Petrobras has seven years to explore and then 25 years to produce oil and natural gas in the area


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