Zenith Energy to deploy new rig for light drilling onshore Azerbaijan

Oil&Gas Materials 6 September 2019 12:50 (UTC +04:00)

Baku, Azerbaijan, Sep.6

By Leman Zeynalova – Trend:

A-100 workover rig is being prepared for delivery to Muradkhanli-Jafarli-Zardab block of oil fields onshore Azerbaijan, Canada’s Zenith Energy company, the project operator, told Trend.

The rig will be deployed across the fields to engage in workover and light drilling activities, said the company.

“The workover rig is built by Azneftmash with whom we have an excellent relation.

We expect delivery very soon and we are delighted to support the manufacturing industry of Azerbaijan,” said Zenith Energy.

The Canadian company reminded that it has a systematic plan to increase production to 1,000 barrels per day at Muradkhanli-Jafarli-Zardab, which is the company’s first production target.

“Our outlook is very positive and it is possible we may order further workover rigs in the near future as we increase our operations,” said Zenith Energy.

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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