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Russian group looks to Cuban oil

A Russian national oil consortium created to run oil projects in Venezuela will also cooperate with Cuba's state-run Cubapetroleo, according to a memorandum signed today between the companies.

The memorandum of understanding calls for cooperation on activities "from geological work to drilling, refining and sales" of oil, ITAR-Tass and Interfax quoted Deputy Prime Minister Igor Sechin, a point man for the economic side of Russia's renewed push for influence in Latin America, as saying.

He said contracts for the development of Cuba's oil industry would be drafted, and specified that "there are good prospects for the development of sea terminals," the reports said. He said Russians will train Cubans for oil industry work, according to Interfax.

The memorandum was signed by representatives of Cubapetroleo and a Russian consortium comprising Gazprom Neft, TNK-BP, Zarubezhneft, Rosneft and Surgutneftegaz, Sechin said.

Sechin said the agreement does not bar individual Russian and Cuban oil companies from working together, and that companies from other Latin American countries could also cooperate, according to Associated Press reports.

Last year, the same companies formed a consortium to work on projects in Venezuela with state-run Petroleos de Venezuela. That group is operated by Gazprom, though PDVSA retains control, according to a RIA Novosti report.

Cuban oil produced by the consortium will be exported to the United States, China and Europe.

Cubapetroleo announced in October that Cuba may have more than 20 billion barrels of oil in its offshore fields.

The country currently produces 60,000 barrels of oil per day.

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