Baku, Azerbaijan, Oct. 4
By Gulgiz Muradova – Trend:
Zenith Energy Ltd., producing oil at the Muradkhanli, Jafarli and Zardab oilfields in Azerbaijan, voiced great enthusiasm for the successful development of Zenith’s oil production activities in Azerbaijan.
Company CEO Andrea Cattaneo, when asked about Zenith’s future plans and if there were new fields on the agenda, said that the company is primarily focused on developing its existing assets in Azerbaijan that have huge potential, but is strategically committed to further expansion in Azerbaijan with time when its energy production partners in Azerbaijan “consider it to be appropriate”.
He added “we view Azerbaijan as a very strong and reliable jurisdiction, and as the ideal location for the Company’s successful development”.
Zenith holds an 80% participating interest in the three fields within the agreement area (Muradkhanli, Jafarli and Zardab), while a SOCAR Oil affiliate company (fully owned by SOCAR) retains the remaining 20%.
The Muradkhanli-Jafarli-Zardab bloc is located in the oil and gas area of the Yevlakh-Agjabedi-Imishli region of Azerbaijan. The bloc covers a total area of 642.4 square kilometers and offer Mesozoic sediments.
Cattaneo said the company is currently not interested in offshore fields, but allowed for such a possibility in the future.
As for oil prices, Cattaneo said that the operation in Azerbaijan meet expectations and even oil prices around $50 will bring enough revenue to the company.
"As you know we are low-cost company and even at this level [of prices] we can perform strongly," he said.
Azerbaijan’s proved oil reserves stood at 7 billion barrels at end 2016, or 0.4 percent of the world proved oil reserves, according to the BP Statistical Review of World Energy.
Oil production in Azerbaijan stood at 826,000 barrels per day, or 1.6 percent less than in 2015, according to the report.
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