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Zenith Energy purchases drilling equipment for operation onshore Azerbaijan

Oil&Gas Materials 23 January 2019 11:37 (UTC +04:00)

Baku, Azerbaijan, Jan.23

By Leman Zeynalova – Trend:

Canada’s Zenith Energy company, which is the operator of Muradkhanli-Jafarli-Zardab block oil oil fields onshore Azerbaijan, has purchased drilling equipment from Italian B Robotics W S.r.l. company, Trend reports citing a message from the Canadian company.

Reportedly, the equipment was purchased by Zenith Energy’s oilfield service company subsidiary Zena Drilling Limited for a total amount of approximately 722,000 euros.

“The company has agreed with Robotics that approximately 75 percent of the aforementioned drilling equipment will be transported with the BD-260 drilling rig. This is expected to enable a reduction in transportation costs and a faster deployment of the equipment in operations,” said the company.

Zenith also confirmed that it has reached an agreement with an international logistics company for the transportation of the BD-260 drilling rig from Italy to Azerbaijan. Shipment is expected to begin on January 28, 2019, said the message.

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.

Follow the author on Twitter: @Lyaman_Zeyn

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