Baku, Azerbaijan, Nov. 17
By Maksim Tsurkov – Trend:
Canada’s Zenith Energy produced 47,950 barrels of oil at the onshore block of Azerbaijan’s Muradkhanli-Jafarli-Zardab field, starting from April 1 [beginning of the company’s fiscal year] to October 1, 2017, a source in the Azerbaijani oil and gas market told Trend Nov. 17.
“Almost 45,400 barrels of Azerbaijani oil were sold during the period. As of late September 2017, there were 2,588 barrels of unsold oil in the company’s storage facilities, but it was sold in the following months,” said the source.
The source noted that the company’s capital expenditures amounted to $931,000 in April-September 2017.
“Generally, this amount was spent as part of the program of rehabilitation and development of the field in Azerbaijan,” added the source.
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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