Zenith Energy announces 2020 oil output target in Azerbaijan
Baku, Azerbaijan, Feb.5
By Leman Zeynalova – Trend:
Canada’s Zenith Energy, which is the operator for development of Muradkhanli-Jafarli-Zardab oil fields onshore Azerbaijan, aims to increase the production to 3,000 barrels per day by close of 2020, Trend reports citing a message from the company.
With the current production level of 270 barrels per day, the company said that the output target by Dec 31, 2019 is 1,000 barrels per day.
This is while the average all-in production cost per barrel is $19, said Zenith Energy, which has gained $450,000 worth revenue from gross Azerbaijan oil production for December 2018.
“Production target of 3,000 barrels per day by the close of 2020 will be achieved via systematic drilling program. Projected all-in production cost of approximately $9 per barrel once this rate of production is achieved,” said the company.
Zenith Energy said that the number of active production wells at these fields is 34, while the number of wells capable of production is 75.
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