Castro Enjoying the Flow

Spanish major Repsol-YPF has announced it would start exploring for oil off Cuba by April at the latest, drilling several wells.

The Castro-led government has granted Repsol the right to explore five blocks in the Gulf of Mexico off the west of Cuba, according to Repsol Chairman Alfonso Cortina.

"We have done the seismic studies ... and we are going to start the first survey at the end of March or at the start of April," Cortina said. "These are high-risk areas ... but we are optimistic."

Foreign companies, mainly Canadian firms Sherritt International and Pebercan, have joint ventures and production agreements with state oil monopoly Cubapetroleo and account for around 60% of Cuba's oil and gas output.