Canada’s Zenith Energy eyes to increase oil production in Azerbaijan
Baku, Azerbaijan, June 8
By Maksim Tsurkov – Trend:
Zenith Energy Ltd. intends to increase oil production at Azerbaijan’s Muradkhanli, Jafarli and Zardab fields to 1,000 barrels per day by March 31, 2018, the Canadian company told Trend June 8.
The company said it has started drilling to a depth of 3,050 meters at well M-195.
“A neutron log has subsequently been run which has confirmed a net oil payzone of 8 meters,” said the company. “Initial flow rates of 149 barrels of fluid per day have been recorded at this well. A steady and increased rate of production is expected to be achieved over the next few weeks and the company will provide a revised production rate announcement as soon as this has been determined.”
Zenith Energy Ltd. noted that it is very pleased with the successful progress at well M-195.
“Workover operations at M-195 had been assigned to an external drilling company, given the name of 'Team B', operating its own workover rig,” said the company. “The decision to perform a sidetrack has clearly now shown to be correct. The company intends to install an electric submersible pump to further improve production at M-195, flow rates can be further increased with the use of nitrogen.”
Azerbaijan’s Muradkhanli, Jafarli and Zardab oil fields are controlled and operated by Zenith Aran, Zenith Energy’s wholly owned subsidiary.
Azerbaijan’s state oil company SOCAR and Zenith Aran Oil Company signed March 2016 a rehabilitation, exploration, development and production sharing agreement on 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) holds the remaining 20 percent. The duration of the agreement is 25 years, with a potential extension of 5 additional years.