Details added (first version posted on 12:45)
Baku, Azerbaijan, Oct.29
By Maksim Tsurkov - Trend:
The State Oil Company of Azerbaijan (SOCAR) is going to sign a contract with Canada's Zenith Energy company for developing onshore oil fields Muradkhanli-Jafarli-Zardab in Azerbaijan, the company's head Rovnag Abdullayev told reporters Oct.29.
"The contract is almost ready. Azerbaijani side has already granted permission for signing the contract," said Abdullayev.
Currently, the remaining details of the agreement are under development, according to SOCAR's president.
This block of fields is technically very complex, there are some problems, but the service staff is working on these issues, Abdullayev added.
The block covers a total area of 642.4 square kilometers, while the daily production nears 315 barrels of oil there. Moreover, small volume of natural gas is produced at the block.
The Zenith company will be the operator of the concession and will hold 80 percent share. The remaining 20 percent share will be owned by the Azerbaijani side.
Zenith's technical personnel have already been allowed access to the fields to inspect the current operation and evaluate the existing infrastructure.
Earlier, Zenith Energy LTD opened its regional office in Baku.
The Muradkhanli-Jafarli-Zardab block is located in the oil and gas area of Yevlakh-Agjabedi Imishli region of Azerbaijan. The Muradkhanli field, which is included in the contract area, was discovered in 1971, Jafarli - in 1984 and Zardab - 1981.
Remaining recoverable oil reserve of the block is estimated at 1.8 million tons and 36 million cubic meters of gas.
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