BAKU, Azerbaijan, Nov.2
By Leman Zeynalova – Trend:
Canadian Zenith Energy company, which was operating Muradkhanli-Jafarli-Zardab oil fields onshore Azerbaijan, sold 70,005 barrels of oil from its assets in Azerbaijan during the financial year ended March 31, 2020 (April 1, 2019 to March 31, 2020), as compared to 75,913 barrels of oil sold in the 2019 similar period, Trend reports with reference to the company’s updated data.
“On March 2, 2020, the Company announced that, in view of Zenith's strategic focus on pursuing large-scale oil production and development opportunities in Africa, it would return the Contract Rehabilitation Area to SOCAR. This return of the CRA to SOCAR resulted in the termination of the Group's oil production operations in Azerbaijan, and the consequent removal of the related economic and financial effects. This has had a significant impact on the financial situation of the Group, specifically as the oil production revenues in Azerbaijan are no longer available,” reads the report.
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.
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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