Baku, Azerbaijan, Dec. 18
By Maksim Tsurkov – Trend:
Canada’s Zenith Energy company, which is the operator of the Muradkhanli-Jafarli-Zardab block of onshore oil fields in Azerbaijan, intends to purchase a modern drilling rig to implement the program of drilling new wells on the block, a source in the Azerbaijani oil and gas market told Trend Dec. 18.
According to the source, the company will start drilling next year and an additional drilling rig is expected to be required as part of the drilling program.
"A modern drilling rig capable of drilling at a depth of 5,000 meters is planned to be purchased to implement a drilling program that will cover 15 years from 2019 to 2033,” the source said. “According to the plan, five new wells will be drilled in 2019 and ten wells will be further drilled every year until the program completes in 2033. Thus, 145 wells are planned to be drilled, of which 58 will be horizontal wells."
The source added that according to the estimations, each well with proven oil reserves will cost about $4.3 million.
"This amount includes the costs of materials, fuel, wages and other expenses,” the source said.
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 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 of 5 additional years.