BAKU, Azerbaijan, Jan. 30
By Leman Zeynalova - Trend:
Zenith Energy Ltd. of Canada has established its fully owned Norwegian subsidiary, Zenith Energy AS (Zenith Norway), Trend reports citing the company.
Zenith said it intends to use Zenith Norway as a vehicle for intended participation in future licensing bids to be organized by the Norwegian Ministry of Petroleum and Energy, as well as to actively pursue the potential acquisition of working interests in mature energy production assets across Northern Europe.
To this end, the company said it will mandate a leading Norwegian law firm to advise on the process of obtaining pre-qualification status for the acquisition of participating interests in Norwegian Continental Shelf energy production licenses.
“The pre-qualification process entails a general assessment by the Norwegian authorities of Zenith's eligibility to become a licensee. Upon the successful achievement of pre-qualification status, in order to qualify as a licensee, Zenith will need to complete a transaction and obtain approval to become a licensee or operator for the specific production license from the Norwegian Ministry of Petroleum and Energy and the Ministry of Finance,” reads a message from Zenith.
The necessary formalities for Zenith Norway's establishment are expected to be completed within 7 working days, said the company.
Zenith Energy is the operator for the development of Muradkanli-Jafarli-Zardab block of fields onshore Azerbaijan.
Azerbaijan’s state oil company SOCAR and Zenith Aran Oil Company signed a 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.
---
Follow the author on Twitter:@Lyaman_Zeyn