Baku, Azerbaijan, Nov.23
By Leman Zeynalova – Trend:
A-100 workover rig is expected to be deployed in operations at Azerbaijan’s Muradkhanli-Jafarli-Zardab block of oil fields by the close of 2018, Canada’s Zenith Energy company, the block’s operator, said in its updated report.
“Zenith's team is now completing the delivery acceptance checks and arranging for transportation of the A-100 truck-mounted workover rig to Azerbaijan where the workover rig structure, including the mast, will be installed,” said the company.
On January 25, 2018, the company announced the signing of a purchase agreement for an A-100 truck-mounted workover rig.
The construction of the mast and substructure of the A-100 truck-mounted workover rig was completed in August.
Moreover, the company said it will provide an update once a 180-ton truck-mounted drilling rig is mobilized to the well location to begin drilling activities after the completion of civil works at the C-37 well location at Jafarli field.
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.
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