Canadian company increases output at oil well onshore Azerbaijan
Baku, Azerbaijan, August 11
By Leman Zeynalova – Trend:
Canadian Zenith Energy company, which is the operator of Azerbaijan’s Muradkhanli-Jafarli-Zardab block of onshore oil fields, has increased the production volume at M-66 well, a source in the company told Trend.
“The output had reached 50 barrels of oil per day (bopd) from the well, which was returned to production last month,” said the source.
The M-66 well was drilled at Muradkhanli site in 1978 and in 1999 it became shut-in.
Zenith chief executive Andrea Cattaneo said that Zenith is gradually reaping the rewards of its increased investment in equipment and the strengthening of its operational team.
“Our targeted and carefully considered investments in machinery and personnel will ensure a progressive increase in our field production without the dangers presented by imprudent expenditure,” he added.
The resumption of work at M-66 well is part of a larger, systematic program towards economically maximizing production at non-producing and underperforming wells across Zenith’s 642.4 square kilometer contract area.
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 oilfields. These fields cover an area of 642.2 square kilometers. Production under the agreement began in August of 2016.
Zenith holds a 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.
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