Baku.22 November. REPORT.AZ/ Zenith EnergyLtd. has received first two payments for invoices generated for producing Ural crude oil from the Muradkhanli-Zardab-Jafarli onshore fields in Azerbaijan during August and September 2016.
Report informs citing the company.
It was noted that the crude oil was sold to the Marketing and Economic Operations Division of the State Oil Company of Azerbaijan Republic (SOCAR) and payment was made in accordance with the agreement signed between the division and Aran Oil Operating Company, established for operations in Azerbaijan.
"Payments were delivered to Zenith Aran on the 29th of October and on the 15th of November in accordance with the Company's expectations. Additional crude oil quantities have been formally delivered into the international pipeline network by Zenith Aran, creating additional invoices. Zenith Aran's crude oil is transported from the Shirvan oil terminal, domestically through the network of SOCAR pipelines, and then internationally, through Transneft, where it ultimately reaches the Novorossiysk port on the Black Sea (via Baku-Novorossiysk pipeline). As an alternative, Aran may also choose to transport its crude oil to the Mediterranean Sea through the BTC (Baku-Tbilisi-Ceyhan) pipeline," the information reports.
Andrea Cattaneo, CEO, comments, "Zenith is exceptionally pleased with the rapid progression of commercial activity in Azerbaijan: "It is delighted to note that the first payment for crude oil from the Muradkhanli oil field was received two days in advance of the due date. The second payment further validates our confidence in the process. Already at a production rate of 300 barrels per day, these payments equate to approximately 360,000 USD per month.
While management has always been confident in the quality and credibility of our buyer, SOCAR Marketing and Economic Operations Division, we believe it is important to communicate these results to our international investors so that they may share our confidence."
Notably, Canadian company Zenith Energy Ltd. established the company Zenith Aran Oil Company Ltd in Azerbaijan.
Operations on the fields block are conducted by Aran Oil founded by Zenith Aran Oil Company and SOCAR.
SOCAR and the Zenith Aran Oil Company Ltd signed a PSA contract on onshore oilfield block Muradkhanli, Jafarli and Zardab on March 16, 2016. The agreement was signed by SOCAR President Rovnag Abdullayev and CEO of Zenith Aran Oil Company, Andrea Cattaneo.
Zenith received 80% and the joint oil company, fully owned by SOCAR, 20% in the project. The contract was signed for 25 years.
The total area of the fields covers 642.4 sq km area.