Baku, Azerbaijan, July 18
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 increased the capacity of BD-260 rig for drilling operations in Azerbaijan,Trend reports citing Canada’s Zenith Energy company.
As previously announced, the company has recently taken delivery of a Top Drive System which is expected to greatly enhance the performance of drilling activities, specifically on account of the increased safety and operational flexibility offered over the traditional rotary system. The company confirmed that the Top Drive System has successfully been installed and is currently being tested in preparation for the commencement of drilling operations.
“In addition, the BD-260 has undergone a full host of upgrades to its mud system which have increased its capacity in preparation for the requirements of future drilling activities,” reads the message.
Reportedly, Zena Drilling Limited, the company's fully owned service company subsidiary, has acquired approximately $250,000 of spare parts to mitigate against the risk of delays being incurred during drilling activities as a result of equipment failures.
“It is expected that the operational performance and the speed of future drilling operations performed by the BD-260 drilling rig shall progressively increase once the set-up and introductory operational activities are completed,” said the Canadian company.
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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