Zenith Energy to begin mobilization of new rig onshore Azerbaijan soon
Baku, Azerbaijan, March 27
By Leman Zeynalova – Trend:
Zena Drilling Limited, oilfield service company subsidiary of Canada’s Zenith Energy company, will begin mobilization of the BD-260 drilling rig to well C-37 in the Jafarli Field of Azerbaijan during the next 48 hours, Trend reports citing a message from the company.
"The beginning of our potentially transformational well deepening program in the Jafarli Field in Azerbaijan is now imminent. We are extremely excited by current progress and look forward to seeing the rig fully rigged up and ready for drilling. Success in this operation will enable us to definitively put past disappointments behind us and look with renewed confidence to a bright future for Zenith Energy and our supportive shareholders,” Andrea Cattaneo, Chief Executive Officer of the company 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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