Baku, Azerbaijan, Jan. 27
By Maksim Tsurkov - Trend:
The Canadian Zenith Energy Ltd. has formed a wholly-owned subsidiary, Zenith Aran Oil Company Ltd for oil production in the central Azerbaijan region where its three producing fields are located, said the message posted on the Canada's Stockhouse financial portal.
The fields are named Muradkanly, Yafarli and Zardob. Zenith's three Azerbaijan fields have a compounded acreage of 642.4 square kilometers, and are currently producing nearly 350 barrels of crude oil per day, although they have historically produced larger volumes. Gas is also produced, but in low quantity, and is used at the site.
"This local identification is considered important to management, and indicative of both Zenith's long term commitment to Azerbaijan and plan to exclusively focus on the recently acquired fields," said the message. "Having a wholly-owned subsidiary fully dedicated to this project is a strategy that has proven to attract significant local expertise and enabled Zenith to effectively integrate new methods, technologies and personnel."
Zenith Aran Oil Company Ltd. will continue to operate from the parent company's branch office Azure Plaza in Baku.
Azerbaijani management familiar with the properties will initially be supplemented by new technical and operational personnel from Zenith, however the company will also begin to actively identify international management and specialists willing to relocate to Azerbaijan as part of its strategy to grow domestic production.
The company and its advisors are currently focusing on coordinating the official handover of operations to Zenith Aran Oil Company. In cooperation with the various Ministries and local entities, Zenith has made significant progress in dealing with matters not only pertaining to production and future development, but items dealing with human resources including taxation, employment and labor and environmental accounting.
Zenith will be the operator of the concession and will have an 80 percent interest, while the local state party will retain 20 percent. The license will have duration of 25 years and has the capacity to be extended for an additional five year period.
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