Canadian company to launch line pipe replacement program in Azerbaijan
Baku, Azerbaijan, Aug.13
By Leman Zeynalova – Trend:
Canada’s Zenith Energy company, which is the operator of Muradkhanli, Jafarli and Zardab oil fields onshore Azerbaijan, has decided to replace 4,000 meters of line pipe across its field area in Azerbaijan by the close of 2018, Trend learned from the company.
“Delivery of the first batch of line pipe is expected to take place within the next 14 days. The line pipe replacement program will begin immediately upon delivery of the materials,” said Zenith Energy.
The Canadian company said that the installation of new line pipe is expected to yield the following benefits: minimizing oil loss during transportation from the well to Zenith's field oil processing and storage facility; reducing restrictions to oil flow from active production wells, a lowering of line pipe pressure.
Moreover, as part of its ongoing field rehabilitation and infrastructure modernization activities, the company plans to begin the reconstruction of a 2000m3 oil storage tanks during the month of September.
It is expected that further storage tanks will undergo reconstruction work later in the year.
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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