Baku, Azerbaijan, Dec. 18
By Maksim Tsurkov – Trend:
Canada’s Zenith Energy, which is the operator of Azerbaijan’s largest onshore block of oil fields Muradkhanli-Jafarli-Zardab, plans to complete workover and recovery of 44 wells at the block by 2020, the company told Trend Dec. 18.
The company said that five wells are currently shut-in and inactive, and production at the remaining 39 wells is at a low level - no more than five barrels per day.
“The workover at these fields, using improved technologies and optimization procedures, as planned, will allow increasing production by two or three times – to 10-15 barrels per day per well. Ten wells are to be recovered this year, 11 wells in 2018, 15 wells in 2019 and 8 wells in 2020,” said Zenith Energy.
The program on recovery of the Muradkhanli-Jafarli-Zardab block is being implemented using an 80-ton drilling rig of the company as well as a more powerful drilling rig owned by a local contractor.
“Zenith Energy intends to purchase a modern drilling rig for well workover in the next three years. This is expected to lead to a reduction in the company’s dependence on third-party contractors,” said the company.
As for five currently shut-in wells at the Zardab field, their recovery is scheduled for 2019, according to the company.
Zenith Energy said that during the first four years of the company's operations under a Rehabilitation, Exploration, Development and Production Sharing Agreement (REDPSA) in Azerbaijan, investments in upgrading the gathering system and central facilities with an aim to increase safety, efficiency and output are expected to total $2.5 million.
Azerbaijan’s state oil company SOCAR and Zenith Aran Oil Company signed a 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 an 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 by 5 years.