Baku, Azerbaijan, Feb.8
By Leman Zeynalova – Trend:
Canada’s Zenith Energy company, which is the operator for development of Muradkhanli-Jafarli-Zardab block of oil fields onshore Azerbaijan, has defined an agreement with a third-party service provider to begin civil works at the C-37 well location in Jafarli field, Trend reports with reference to the company message.
As announced on January 7, 2019, preparation activities for well deepening operations in well C-37 of the Jafarli Field have been completed successfully.
“The company has defined an agreement with a third-party service provider to begin civil works at the C-37 well location and expects mobilization of the necessary equipment to take place in due course,” reads the message.
Zenith confirmed that its operational team has performed cleanout operations in well C-26 with the target depth of 3,920 meters (production casing shoe) using the company's A-80 truck-mounted workover rig to determine the well's suitability for deepening operations.
“As announced on January 7, 2019, well C-26, an adjacent well to C-37 in the Jafarli Field, intersects the Middle Eocene and Upper Cretaceous formations of the same unexploited structure identified as the target zone for well deepening operations in well C-37. During the cleanout it was discovered that well C-26 has production casing damage at a depth of 1,630 meters rendering the well unsuitable for well deepening operations,” said the company.
Zenith Energy’s operational team has therefore mobilized the A-80 workover rig to a second adjacent well to C-37, C-30, where it is performing similar well tests to determine the integrity of the production casing and thereby ascertain whether well C-30 might be suitable for well deepening activities.
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.
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