By Leman Mammadova
Canada’s Zenith Energy company, which is the operator for development of Muradkhanli-Jafarli-Zardab block of onshore oil fields in Azerbaijan, successfully continues its operations in the country.
The company intends to increase oil production at the block to 1,000 barrels per day by late 2019, said Andrea Cattaneo, CEO of Zenith Energy.
He stressed that if the production increases by 700 barrels per day and reaches 1,000 barrels per day by the end of 2019, it will bring a surplus of profit, adding that making an increase of production does not require large expenditures.
Cattaneo also noted that the work on the C-37 well of the Jafarli field has recently begun, and underlined that besides deepening wells, this will contribute to the achievement of production of 700 barrels per day or more, similar to the volume at the C-22 well.
He pointed out that after the completion of deepening of C-37, the company will move on to C-30 in 15 days.
“Then, together with the Azerbaijani state oil company SOCAR, we will choose the exact location of the ZEN-1 well, which will be greatly influenced by the results of drilling at wells C-37 and C-30,” Cattaneo added.
Zenith Energy is an international oil and gas production company operating the largest onshore block of oil fields Muradkhanli-Jafarli-Zardab in Azerbaijan.
The company has recently attracted funds of 607,000 pounds from shares in Canada and the UK to increase investment and general business operations in Azerbaijan. Zenith Energy plans to increase its production directly through drilling campaign.
Azerbaijan’s state oil company SOCAR and Zenith Aran Oil Company signed a Rehabilitation, Exploration, Development and Production Sharing Agreement (REDPSA) in March 2016 for a block that includes the Muradkhanli, Jafarli and Zardab oil fields. Zenith Energy established its subsidiary company Zenith Aran Oil Company Ltd for production operations in these three fields.
The agreement was ratified by the Azerbaijani Parliament on June 14 and the production under the agreement began in August 2016.
Zenith holds an 80-percent participating interest in the three fields within the contract area, while SOCAR retains the remaining 20 percent. The duration of the agreement is 25 years, with a potential extension of 5 additional years.
The Muradkhanli-Jafarli-Zardab block is located in the Yevlakh-Agjabadi oil and gas area of Imishli region of Azerbaijan. The Muradkhanli field was discovered in 1971, Jafarli - in 1984, and Zardab - in 1981.
The total area of the Muradkhanli, Jafarli and Zardab fields is 642.4 square kilometers, and according to the contract, it is divided into rehabilitation and exploration territories.
In general, it is expected to produce 7.399 million barrels of oil from the onshore fields in Azerbaijan.
Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888
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