By JERUSALEM POST STAFF
Brazil's state-run oil company signed an $8 million agreement Friday to explore for oil in deep Caribbean waters north of Cuba.
Brazil's Petroleo Brasileiro SA, or Petrobras, hopes to tap into some of the unproven offshore reserves that communist government officials claim could contain 20 billion barrels of crude.
The plan spans 32 years, allowing Petrobras to explore for oil for seven years, then spend 25 more producing oil and natural gas recovered at a site north of the world-famous beach resort of Varadero, 130 kilometers from Havana.
The $8 million is an initial investment. After an immediate exploration phase of 18 to 24 months, more funds from Petrobras and its Cuban counterpart, Cuba Petroleo, could come, depending on how much oil can be exploited.
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