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Cuban Leader Meets with Russian Oil Giant Zarubezhneft's President

Wednesday, November 27, 2024 by Mia Dominguez

Cuban Leader Meets with Russian Oil Giant Zarubezhneft's President
Sergei Kudryashov meets with Díaz-Canel - Image from © presidencia.gob.cu

On Tuesday, Cuba's leader Miguel Díaz-Canel held discussions with Sergei Kudryashov, the CEO of the Russian oil company Zarubezhneft. This meeting underscored the critical collaboration between Cuba and the Russian enterprise, particularly focusing on the Boca de Jaruco oil field situated in Mayabeque province. Díaz-Canel, who also serves as the first secretary of the Communist Party of Cuba, emphasized the desire to deepen bilateral ties in the energy sector.

"We are delighted to welcome you to our nation and take this opportunity to acknowledge the contributions Zarubezhneft has made," expressed the Cuban head of state. He also described the occasion as a chance to "further advance" joint projects, as he shared on his X account.

Strategic Oil Endeavors for Cuba

Since 2011, Zarubezhneft has been partnering with Cuba's state-run CUPET to enhance oil recovery at the Boca de Jaruco field, located approximately 30 kilometers from Havana. This site, with an estimated 3.7 billion tons of crude oil, has been at the forefront of technological innovations such as the introduction of horizontal drilling by the Russian firm in 2019.

Díaz-Canel, during the meeting, reminisced about his earlier visits to the field and highlighted the promising results that were already visible then. He also referred to recent exchanges with CUPET about the project's progress and future outlook. "The benefits and prospects are very promising," he noted.

Meanwhile, Kudryashov presented fresh proposals and data concerning the project, which were positively received by the Cuban side, according to the Cuban Presidency's website.

Energy Crisis Highlights Need for Collaboration

The engagement with Zarubezhneft comes at a critical juncture for Cuba, which is grappling with a severe energy crisis characterized by frequent blackouts and challenges in electricity generation. The island heavily relies on imported oil to meet its energy demands due to its limited internal extraction capabilities.

The Boca de Jaruco field plays a pivotal role in Cuba's efforts to boost its local oil production, although technological constraints and a lack of investment have hindered its full development.

Strengthening Bilateral Ties

Key figures from the Cuban regime, such as Deputy Prime Minister Ricardo Cabrisas Ruiz and Minister of Energy and Mines Vicente de la O Levy, were also present at the meeting. This dialogue reinforces the strategic alliance between Cuba and Russia, particularly in crucial sectors like energy, and highlights the expanding economic and military cooperation between the two nations amid international tensions like the ongoing Russian invasion of Ukraine.

Zarubezhneft's Interests in Cuba

Since 2011, Russian state-owned Zarubezhneft has maintained a significant presence in Cuba's energy sector, working closely with the Cuban Union of Petroleum (CUPET) on oil extraction and recovery projects. One of the standout initiatives, involving personal commitment from Russian leader Vladimir Putin, is the development of the Boca de Jaruco field in Mayabeque province, where advanced techniques have been employed to extract heavy crude.

"Zarubezhneft is developing the Boca de Jaruco field. The development of new offshore blocks in Cuba is expected shortly," Putin stated in July 2014. The regime's propaganda often touts these offshore explorations, but little has materialized.

In 2012, Zarubezhneft began drilling an exploration well in block L, north of the Sancti Spíritus and Ciego de Ávila provinces, using the semi-submersible platform Songa Mercur. However, in 2013, the company temporarily suspended operations due to geological complications and technical issues with the platform.

Despite these obstacles, the collaboration between Zarubezhneft and CUPET has persisted, focusing on improving efficiency and increasing production in existing fields. In 2020, the Russian company announced plans to extract approximately 52 tons of oil daily from a well in Boca de Jaruco, thanks to advanced technologies developed in partnership with Kazan Federal University. The initial phase of the project involves a €100 million investment in Cuba.

Beyond Zarubezhneft, other Russian enterprises have also shown interest in Cuba's energy sector. In 2024, reports indicated that Russia was contemplating the construction of an oil refinery in Cuba, signaling a strengthening of bilateral relations in the energy domain.

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