Zenith Energy identifies new structure in Azerbaijani oil field
Baku, Azerbaijan, Oct.22
By Leman Zeynalova – Trend:
Additional, ongoing geological and reservoir investigations have enabled Canada’s Zenith Energy company to identify a new structure in the Jafarli field in Azerbaijan, Trend learned from the company.
Zenith Energy is the operator of Muradkhanli, Jafarli and Zardab oil fields onshore Azerbaijan.
“The identified structure measures approximately three square kilometers. The study recommends that well C-37's total depth, 3,987 meters, be deepened by approximately 200-250 meters,” said the company.
“As can be seen from the application of our geological re-evaluation of our assets in Azerbaijan which has resulted in the identification of a new geological structure in the Jafarli field, we are maximizing our level of preparation and geological understanding. This is extremely important in order to achieve the highly material upside we believe our Azerbaijan asset can deliver through successful drilling activities at a time of very favorable oil prices,” Andrea Cattaneo, Chief Executive Officer, said.
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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