Canadian company reveals volume of revenues from assets in Azerbaijan
Baku, Azerbaijan, Aug.13
By Leman Zeynalova – Trend:
Zenith Aran, subsidiary of Canada’s Zenith Energy company in Azerbaijan, generated revenue, gross of commissions and transportation expenses, of approximately $490,000 for its oil production during the month of July 2018, Trend learned from the company.
Zenith Energy is the operator of Muradkhanli, Jafarli and Zardab oil fields onshore Azerbaijan,
"Considerable progress has been made in many areas to ensure that we now return to the Zardab field with the full capability to achieve the results that have eluded us thus far. The geological work performed during recent months has significantly enriched our understanding of the field's geology, and further substantiated our confidence in the transformational potential of our Azerbaijan asset,” Andrea Cattaneo, Chief Executive Officer of Zenith Energy said.
“The arrival of new operational management in September, as well as some of the most powerful drilling equipment the field has seen in the last twenty years, means we shall be positioned to fully execute our work program.”
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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