Zenith Energy’s well intervention enters final stage onshore Azerbaijan

Oil&Gas Materials 23 November 2018 13:28 (UTC +04:00)

Baku, Azerbaijan, Nov.23

By Leman Zeynalova – Trend:

The primary phase of well C-37 intervention at Azerbaijan’s onshore Jafarli oil field has entered the final stage, said a message from Canada’s Zenith Energy Company, operator of Muradkhanli-Jafarli-Zardab block.

The company said it expects to reach the target depth of 3,904 meters soon.

“Following completion of the aforementioned activity, the company will pull the tri-cone drill-bit out of hole and subsequently re-run a scraper in hole to perform a final cleanout of the casing to a depth of 3,904 meters, “ said the Canadian company.

Zenith Energy said it will begin wireline logging as soon as the scraper has been pulled out of hole following successful cleaning out of the casing to a depth of 3,904 meters. “Construction of the drilling pad is expected to commence immediately after the conclusion of wireline logging.”

The wellbore will be considered ready for well deepening operations once these activities have successfully been concluded, according to the company.

“In addition, Zenith's operational team is assessing whether to perform a further cleanout of the wellbore in the 3,906-3,987 meters interval followed by a production test to determine the natural productivity of the well from the penetrated depths of the Middle Eocene formation which are plugged with sand-solids.”

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.

The term of the REDPSA is 25 years from the date of SOCAR’s approval of the contractor’s development program. The term of each Area may be extended by an additional five years at the option of SOCAR.

The Company sells its oil through SOCAR’s Marketing and Operations Department (“SOCARMO”). A related commission of 1 percent on total oil sales is payable by the Company to SOCARMO.

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.