Baku, Azerbaijan, Aug. 21
By Maksim Tsurkov – Trend:
Canadian Zenith Energy company, which is the operator of Azerbaijan’s Muradkhanli-Jafarli-Zardab block of onshore oil fields, expects to receive a new Chinese drilling rig to be used on the block within 90 days, the company told Trend, Aug. 21.
According to the company, total cost of the ordered equipment produced by Kerui Petroleum is 1.3 million pounds.
“Zenith will pay Kerui Petroleum 15 percent of the contract’s total cost in advance, as a deposit. The new equipment will increase our operational capabilities,” said the company.
According to the contract, the equipment is expected to be delivered within 90 days.
Existence of the in-house equipment will help to protect operations from the possible delays by the third-party suppliers, said Zenith Energy.
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 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 for additional five years.
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