Republic of Cuba

The Boca de Jaruco field is located on northern coast of Cuba, 30 km from Havana. The 37 km2 contract area is located in the northwest part of the field, 3.7 km west of the Boca de Jaruco village. It was discovered in 1969 and is operated by the Cuban state oil Company CubaPetroleo.

Zarubezhneft JSC functions as a as a Contractor for the project as per the Agreement of International Economic Association (AIEA) dated June 24, 2011. The agreement will be valid 25 years and includes two stages: a period for pilot works set for 4 years (with the possibility of a 4 year extension) and the operation period. The return on investment for Zarubezhneft JSC is provided for by the terms of the AIEA.

On August 2018, Addendum No. 4 to AIEA entered into force, providing for the financing of local services and material and technical resources when conducting the pilot development at reservoir M for 2 years using the funds of the Special Account - the non-written off part of the debt of the Republic of Cuba as per the Agreement between the Government of the Russian Federation and the Government of the Republic of Cuba on settlement of the Republic of Cuba debt to the Russian Federation on loans given in the period of the former USSR dated October 25, 2013. In December 2018, the first payment was made for the services of Cuban contractors involved in project implementation, at the expense of the Special Account.

Capital investments, MM RUB
Ownership Structure, %
Success

Exploration and operation of facilities

In the reporting year, as part of the project scientific support, the work was completed on selection of an aquathermolysis catalyst to intensify on-site oil treatment and an experimental catalyst batch was produced for conducting the Pilot Development Planning.

In December 2018, the Work Program and the Budget for 2019 were approved for the project in the context of sources of financing - Zarubezhneft JSC own funds and of the Special Account funds.

Prospects

In 2018, a Memorandum of Understanding was signed between Zarubezhneft JSC and CubaPetroleo on the Assessment of Geological Resources and Prospects for the Development of Bituminous Oil Paleogene Deposits and Bitumen of Northern Cuba. The priority area of the production program for the nearest future is the start of drilling three horizontal wells and drilling completion in 2020. In addition, pilot projects are planned for catalytic on-site aquathermolysis using catalysts for on-site oil treatment.