Canada's Zenith produces first oil in Azerbaijan under REDPSA
Baku, Azerbaijan, Aug.25
By Aygun Badalova - Trend:
Canadian Zenith Energy produced first volumes of oil at approximately 300 barrels per day in Azerbaijan under Zenith’s banner, said the company's message.
This milestone marks the successful completion of the handover process and the transfer of operatorship to Aran Oil Operating Company, an entity jointly created and owned by Zenith Aran Oil Company, a 100 percent subsidiary of Zenith Energy ltd (“Zenith Aran”) and SOCAR, the report said.
In proportion to their ownership of Aran, Zenith Aran, a wholly-owned subsidiary of Zenith, will hold a 80-percent participating interest in current and any increased future production, while a SOCAR Oil affiliate company (fully owned by SOCAR) will retain 20 percent of production.
These companies were created to fulfil the Rehabilitation, Exploration, Development and Production Sharing Agreement (“REDPSA”) for the production, development and exploration of the 642.4 square kilometer onshore concession encompassing the three fields of Muradxanli, Cafarli and Zardab in the Republic of Azerbaijan.
The duration of the REDPSA is 25 years, with a potential extension of five additional years.
The REDPSA between Zenith Aran and SOCAR was signed on March 16, 2016.
Andrea Cattaneo, CEO of Zenith Energy said the company is confident that Azerbaijan represents an unprecedented opportunity for energy development and are committed to a long term relationship.
The support of the government and SOCAR throughout the process of establishing the REDPSA has been remarkable and Zenith management cannot overstate our appreciation.
"We now enthusiastically embrace the opportunity to demonstrate Zenith’s strengths as an operator in one of the largest and most-storied oil and gas countries in the world and have already turned our focus to increasing the daily production of oil from the Muradxanli, Zardab and Cafarli fields,” Cattaneo said.