Canada’s Zenith reveals oil sales from Azerbaijani assets
Baku, Azerbaijan, Feb.18
By Leman Zeynalova – Trend:
During the three and nine months ended December 31, 2018, Canada’s Zenith Energy company sold 21,043 and 64,611 barrels of oil from its assets in Azerbaijan, Trend reports citing Zenith Energy, which is the operator of Muradkhanli-Jafarli-Zardab block of oil fields onshore Azerbaijan.
Andrea Cattaneo, Chief Executive Officer said that there has been a 30 percent increase in revenues registered in this set of financial results.
“This clearly evidences the very favourable impact of resurgent energy prices during the period and the financial value of our existing production. Indeed, if possible, this further strengthens our intention to materially increase our production activities in the near-term, which we believe will be achievable through the success of our well deepening programme in the Jafarli Field. A clear victory in the aforementioned operations will be transformational for the company and is our primary objective at this time,” he said.
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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