Baku, Azerbaijan, Dec.6
By Leman Zeynalova – Trend:
Workover and deepening of C-37 well at Jafarli field onshore Azerbaijan can take days till the end of the year or more to see more important results, Andrea Cattaneo, Chief Executive Officer at Canada’s Zenith Energy company, said.
“We have a tremendously busy period between now and next days before the end of the year, because, either operationally, or financially, we are committed to achieve a variety of results. Operationally, we have C-37 workover. We should see the arrival of the rented rig in due course and deepening of this well, which can take days till the end of the year or more to see more important results,” Trend reported citing a message on the company’s website.
He pointed out that the company has always achieved profit in production at its Azerbaijani assets.
“First, we should see the dimension of our field. You need to understand such a huge area. We discovered the bad quality of the majority of the old wells and are not trying to workover them anymore. In fact, C-37 well is the most recent well being drilled in 2018. We think that we have learned a lot in this period at a very cheap proportional cost. While making mistakes, we always made profit in production. Now two geological studies we have commissioned will enlighten us about what we shall do in the future to be successful,” said Cattaneo.
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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