Baku, Azerbaijan, Sept.5
By Leman Zeynalova – Trend:
Canadian Zenith Energy company, which is the operator of Muradkhanli, Jafarli and Zardab oil fields onshore Azerbaijan, has purchased BD-260 drilling rig, Trend learned from the company.
“Zenith is pleased to announce that its oilfield service company subsidiary, Zena Drilling Limited, ("Zena") has signed a purchase agreement for the acquisition of a BD-260 drilling rig assembled by B Robotics W S.r.l., ("Robotics") for a total consideration of 2,250,200 euros,” said the company.
The aforementioned agreement supersedes the six-month rental agreement Zena had signed with Robotics for the BD-260 drilling rig (the "BD-260") announced by the company on June 6, 2018. In addition, Robotics has confirmed it will provide its highly experienced drilling personnel for a minimum of 6 months as part of the aforementioned agreement.
Zena has purchased the BD-260 in order to complete the company's planned workover and drilling activities in the Muradkhanli, Jafarli and Zardab fields for the next 18 months. As announced by Zenith on August 13, 2018, the company has completed two comprehensive geological studies that have provided a significantly enhanced understanding of the hydrocarbon production of the Company's operations in Azerbaijan which will have a direct influence in shaping the company's operational activities going forward.
Robotics has advised the company that it is in the process of sending the first shipment of material in relation to the BD-260 to Azerbaijan. The company will provide an update once the BD-260 is fully assembled on location.
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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