Baku, Azerbaijan, June 6
By Maksim Tsurkov – Trend:
Zenith Aran Oil Company, a subsidiary of the Canadian Zenith Energy and the operator of Muradkhanli, Jafarli and Zardab fields in Azerbaijan, signed a deal with Italian producer B Robotics W on a six-month rent of a drilling rig, the company said on June 6.
The rig will be used to complete the planned repair and drilling work at the Zardab and Muradkhanli fields.
"The ongoing geological research of the company allowed to identify several short-term drilling goals. Zenith intends to maximize use of these opportunities given a significant increase in the oil prices," the company said.
The company noted that the BD-260 drilling rig will be delivered to the block in Azerbaijan within 90 days.
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 oil fields. Zenith Energy Ltd established its subsidiary company Zenith Aran Oil Company Ltd for production operations in these three fields. 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 agreement is for 25 years, with a potential extension by five additional years.
The total area of the Muradkhanli, Jafarli and Zardab fields is 642.2 square kilometers, and according to the contract, it is divided into rehabilitation and exploration territories.
The Muradkhanli-Jafarli-Zardab block is located in the Yevlakh-Agjabadi oil and gas region of Imishli district of Azerbaijan. The Muradkhanli field was discovered in 1971, Jafarli - in 1984, and Zardab - in 1981.
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