Cuba to allow foreign offshore drilling

OSLO, Norway, May 11 (UPI) -- The Cuban government is seeking to sign a contract with three oil companies in Norway, Spain and India to drill for oil in the Gulf of Mexico.

The deal will be between Norway's Norsk Hydro, Spain's Respol YPF and India's ONGC Videsh, Ltd., NRK Web site reported.

Drilling is unlikely to begin before 2008 because high oil prices have lead to more intense exploration and a worldwide shortage of deep-water drilling rigs. Spain's Respol YPF discovered high-quality oil in Cuban waters in 2004; the company will conduct seismic work over the next month.

Talk of drilling for oil in Cuban waters only 75 miles from the United States has sparked some debate in Congress whether U.S. oil companies should not be allowed to operate in Cuba.

American lawmakers believe there may by 4.6 million barrels of oil located in Cuban waters, and as many as 9.3 million barrels in the field north of Cuba.

Sen. Larry Craig, R-Idaho has proposed legislation that would allow U.S. oil companies to look for oil in Cuba. However, congressional members from Florida have attempted to stop any measures to drill near American waters and punish other countries who help Cuba find oil and gas resources.