Baku, Azerbaijan, April 12
By Maksim Tsurkov – Trend:
The gross income of Canada’s Zenith Energy, which is the operator of Azerbaijan’s Muradkhanli-Jafarli-Zardab block of onshore oil fields, has reached a record level since the company began operating in Azerbaijan, the company told Trend on April 12.
The Azerbaijani branch of Zenith,Zenith Aran Oil Company, received revenue of about $490,000 from oil extraction in March 2018.
"The amount was formed with deduction of commissions and transportation costs. The average sale price of Urals oil was approximately $67 per barrel," the company said.
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.
The Muradkhanli-Jafarli-Zardab Block is located in the oil region of the Yevlakh-Agjabedi Imishli region of Azerbaijan. The Muradkhanli field, which is included in the contract area, was opened in 1971, Jafarli- in 1984 and Zardab- in 1981.