Baku, Azerbaijan, Nov.14
By Leman Zeynalova - Trend:
During the three and six months ended September 30, 2018 Canada’s Zenith Energy company produced 22,133 and 45,523 barrels of oil from its assets in Azerbaijan, the company, which is the operator of Azerbaijan’s Muradkhanli-Jafarli-Zardab block, said in its interim report.
This is while Zenith produced 23,095 and 47,954 barrels of oil in this block of fields in the similar periods of 2017.
The results for the period ended September 30, 2018 show an increase in the daily production of oil in Azerbaijan, said the company.
Zenith said it is expecting to continue this trend robustly throughout the remainder of the financial year.
Between 2018 and 2020, the company plans to workover a total of 44 existing wells in Azerbaijan which are currently inactive or produce at low rates using improved technology, non-damaging fluids and optimized treatments.
“It is estimated that 11 wells will be worked over in 2018, 15 wells in 2019 and 8 wells in 2020,” said the company.
Production from a number of the Group's wells in Azerbaijan was suspended during Q3 as a result of field rehabilitation operations, specifically the installation of electrical submersible pumps and well interventions, according to the report.
"Daily production from the field was also affected as a result of the Group receiving faulty chemical to treat its oil production from an international chemical supplier. The Group is now seeking to have the faulty chemical replaced and has ordered new chemical supplies to avoid similar problems being incurred in future," said the company.
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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