Varadero

Varadero Oil Field Profile

Location

The Varadero Oil Field is located in the Matanzas province of Cuba, specifically in shallow water off the coast of the Varadero peninsula. The exact coordinates are 23.147, -81.343 (WGS 84).

Operator and Ownership

The field is operated and owned by Cuba Petroleo (CUPET), which is the state-owned oil and gas company of Cuba.

Discovery and Production

• The Varadero Oil Field was discovered in 1971.
• Production from the field began, though the exact start year is not specified in the available sources.
• The field is currently in an operating status.

Reserves and Production

• The field has significant reserves, with an estimated 2 billion barrels of oil in place.
• As of 2017, the proven reserves were approximately 7,314.67 million barrels of oil.
• The cumulative production from the field as of 2018 was around 231 million barrels of oil.
• Peak production was achieved in 2015, with approximately 31,490 barrels per day (bpd) of crude oil and condensate.
• The field is expected to recover 90.11 million barrels of oil equivalent (Mmboe), primarily crude oil and condensate, and is projected to continue production until it reaches its economic limit in 2059.

Field Characteristics

• The Varadero Oil Field is classified as a heavy oil field, with the oil having a high sulfur content (about 8%).
• The oil is extracted from fractured Upper Jurassic and Lower Cretaceous carbonate reservoirs in structural traps of the Cuban fold and thrust belt.
• The field utilizes advanced drilling techniques, including slant and horizontal drilling, to access the offshore reserves without visible impact on the nearby tourist areas.

Production and Infrastructure

• The field accounts for approximately 50% of Cuba's daily oil output.
• New oil treatment facilities and a pipeline from the Varadero area to the Matanzas supertanker port have been implemented to enhance production capabilities.
• The extracted oil is processed to remove sulfur, and the recovered gas is used to fuel turbines in nearby power generation facilities, such as those in Boca de Jaruco and Varadero, contributing to cleaner energy production.

Environmental and Technological Aspects

• The production process involves environmentally friendly measures, including the removal of sulfur from the heavy crude and the capture of emissions and particulates, which has significantly reduced environmental impact.
• Due to U.S. export control regulations, Cuban oil development relies on second or third-generation technology, which poses a challenge in terms of efficiency and technology acquisition.

Economic and Strategic Significance

• The Varadero Oil Field is crucial for Cuba's energy security, contributing significantly to the country's domestic oil production.
• Despite the challenges posed by U.S. sanctions, Cuba continues to seek international partnerships for further exploration and development of its oil reserves, including deepwater areas in the Gulf of Mexico and the Straits of Florida.

Future Prospects

• Cuba is actively seeking to increase interest in its offshore blocks, including those in the Varadero area, through production-sharing contracts with foreign companies.
• Future exploration and development plans include seismic campaigns and the drilling of new wells to increase domestic production and efficiency.