Baku. 25 January. REPORT.AZ/ Azerbaijan has launched a workover program aimed at rehabilitating 10 wells in the three fields of Muradkhanli, Jafarli and Zardab.
Report informs, the Canadian Zenith Energy company has stated.
"A key element of Zenith's ongoing strategy for Azerbaijan is to increase the scale of its activity to deliver near-term incremental increases in daily oil production. To achieve this goal a workover programme aimed at rehabilitating the first 10 of 65 low producing wells at these fields has begun following the signing of the aforementioned workover contract", the company said.
"Regular cashflow from Azerbaijan operations with production of approximately 295 barrels per day", the statement reads.
Zenith continues to receive regular cashflow from SOCAR Marketing Operations for delivery of Urals crude oil from the Muradkhanli, Jafarli, Zardab fields. Since this date all invoices due for crude oil quantities formally delivered into the international pipeline network by Zenith Aran have been paid punctually and, at times, in advance of the due date.
"We are pleased to announce the beginning of our workover programme so soon after Zenith's successful admission to the London Stock Exchange's Main Market. With the current price of Urals oil exceeding $51 per barrel, significantly higher than the price of oil when Zenith first assumed operatorship of these fields, the timing could not be more favourable for the company to expedite its strategy to increase production", Andrea Cattaneo, Zenith Energy CEO, has said.
Notably, Zenith Energy Ltd through its wholly owned subsidiary, Zenith Aran Oil Company Limited, recently assumed operatorship of Azerbaijan's largest onshore producing oilfield in a Rehabilitation, Exploration, Development and Production Sharing Agreement. The REDPSA was signed between Zenith Aran Oil Company Limited and SOCAR (State Oil Company of the Azerbaijan Republic) on 16 March 2016, was approved by Azerbaijan's Cabinet of Ministers on 25 April 2016, and subsequently ratified by the Azerbaijan Parliament on 14 June 2016. Production under the Zenith banner began on 11 August 2016. The agreement was signed by the SOCAR President Rovnag Abdullayev and Zenith Energy CEO Andrea Cattaneo.
Zenith holds an 80% participating interest in the three fields within the contract area (Muradkhanli, Jafarli and Zardab), while a SOCAR Oil affiliate company (fully owned by SOCAR) retains the remaining 20%. The duration of the REDPSA is 25 years, with a potential extension of 5 additional years.