Baku, Azerbaijan, Jan.25
By Leman Zeynalova – Trend:
Canada’s Zenith Energy company, which is the operator of Azerbaijan’s largest onshore block of oil fields Muradkhanli-Jafarli-Zardab, has signed a purchase agreement contract for the order of a new workover rig, Trend learned from the company.
The contract was signed with a well-established manufacturer based in Azerbaijan.
“The new workover rig is designated as an A-100 truck-mounted workover rig. The model of the rig has an extensive manufacturing history in Russian and Central Asian countries and is among the most heavily utilized workover rig variants in the region. The abundant availability of spare parts and mechanical support in the proximity of the company's operations has played an important role in the selection of the new workover rig,” said Zenith Energy.
Reportedly, the use of the new workover rig will not be restricted to the company's Azerbaijan operations.
Delivery of the new rig is expected to take place ninety days from the signing of the purchase agreement contract.
The total value of the purchase agreement contract for the new workover rig is approximately $440,218 (approximately £250,933).
"The Company is committed to strongly supporting the local economy of our host country. Azerbaijan has a long and successful history of manufacturing oil production equipment and machinery. Upon delivery, the new workover rig will join the company's recently upgraded A-80 workover rig in performing field rehabilitation operations across the field," said Andrea Cattaneo, Chief Executive Officer of Zenith.
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 five additional years.
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