Zenith Energy starts promising new phase on boosting output in Azerbaijan
By Nigar Abbasova
Canada’s Zenith Energy Ltd, which is the operator of Muradkhanli, Jafarli and Zardab oil fields in Azerbaijan, has started the workover of well M-195 at Muradkhanli oil field.
The company earlier announced that wells M-195 and M-45 are the
first two wells scheduled for workovers in the company's Field
Rehabilitation ('Workover') Program.
The Muradkhanli field is the largest of three contiguous fields
controlled and operated by Zenith Aran, Zenith's wholly owned
subsidiary in Azerbaijan.
The beginning of the first well workover signals the start of a
promising new phase in the company's transformational operations in
Azerbaijan, said Andrea Cattaneo, Zenith Energy CEO.
“Rather than creating fleeting short-term excitement on each
workover, Zenith is pursuing a systematic and steady workover
campaign which will bring our sizeable reserves into production,”
he added.
Following the сompany's additional capital raising announced on
January 30, 2017, the Board of Directors has decided to double the
number of workover rigs used in the Workover Program, said the
message.
In addition to the workover rig owned by Zenith Energy, currently
undergoing comprehensive reconditioning, the company has decided to
use a second rig operated by a highly experienced local drilling
company.
“The continued employment of third party service providers will be
evaluated by the Board of Directors following the completion of
workover operations at wells M-195 and M-45. Zenith's strategic
preference is to use its own staff and resources wherever possible,
thereby ensuring better operational oversight and effective cost
management,” said the message.
Azerbaijan’s state oil company SOCAR and Zenith Aran Oil Company
signed March 2016 a rehabilitation, exploration, development and
production sharing agreement at the block that includes
Muradkhanli, Jafarli and Zardab oil fields. These fields cover an
area of 642.2 square kilometers. Production under the Zenith banner
began August 11, 2016.
Zenith holds an 80 percent participating interest in the three
fields within the contract area – Muradkhanli, Jafarli and Zardab –
while a SOCAR Oil affiliate company (fully owned by SOCAR) retains
the remaining 20 percent. The duration of the agreement is 25
years, with a potential extension of 5 additional years.
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