Baku, Azerbaijan, Sept. 12
By Maksim Tsurkov – Trend:
Schlumberger, one of the world’s leading oilfield technology companies, will complete supplies of electrical submersible pumps (ESPs) to Canada’s Zenith Energy, operator of Azerbaijan’s Muradkhanli-Jafarli-Zardab block of onshore oil fields, until late October for rehabilitation activities at the block, a source in Azerbaijan’s oil and gas market told Trend Sept. 12.
Earlier, Zenith Energy identified three main areas of rehabilitation of the block of fields, and the ESP upgrade program is one of such areas.
“The ESP upgrade program involves the progressive replacement of obsolete and unreliable electrical submersible pumps across 11 wells,” the source said. “Zenith Aran's operational team has forecast a total increase of 219 barrels of oil per day over existing production across these 11 wells. These 11 ESP(s) will be procured from Baker Hughes and Schlumberger, two of the world's leading oilfield technology companies.”
The company will employ Zenith Aran's upgraded A-80 workover rig to perform these operations in addition to a similar sized workover rig operated by an experienced local oilfield service company, according to the source. It is anticipated that the ESP upgrade program will continue until the end of November 2017, the source noted.
“Zenith is awaiting delivery of a Schlumberger ESP, custom-built according to the specifications of well M-195,” the source added. “Delivery is now expected to take place in late October 2017. The total number of new ESPs installed across the field, once the ESP upgrade program is completed and including the new ESPs installed at wells M-45 and M-195, will therefore be 13.”
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.