Canadian Zenith Energy Company will operate an onshore block of oil fields in Azerbaijan.
March 17, 2016 Leave a comment
A subsidiary of Canadian Zenith Energy Company will operate an onshore block of oil fields in Azerbaijan.
Azerbaijan’s state energy giant SOCAR and Zenith Aran Oil Company signed an agreement on production sharing, restoration, development and exploration at the Muradkhanli, Jafarli and Zardab oil fields on March 16.
SOCAR reported that the deal was inked by SOCAR President Rovnag Abdullayev and Zenith Energy CEO Andrea Cattaneo for a period of 25 years.
The Muradkhanli-Jafarli-Zardab block is located in the oil and gas area of Yevlakh-Agjabedi-Imishli region of Azerbaijan. Remaining recoverable reserves of the block is estimated at 1.8 million tons of oil and 36 million cubic meters of gas.
These fields cover an area of 642.2 square kilometers. Currently, the average daily oil production at these fields is 350 barrels. Small volume of gas is also produced at the fields and is used in economic and industrial activities.
The Zenith Company will hold 80 percent share, while the remaining 20 percent share will be owned by the Azerbaijani side.
Earlier, Zenith Energy LTD opened its regional office in Baku.
SOCAR is involved in exploring oil and gas fields; producing, processing, and transporting oil, gas, and gas condensate; marketing petroleum and petrochemical products in the domestic and international markets; and supplying natural gas to the industries and public in Azerbaijan.
SOCAR earlier expressed interest in developing oil fields in Canada. The company has already established certain business relations with Canada, and SOCAR’s subsidiary – SOCAR Trading actively operates in this country.
Taking into account that there is great potential for work both in trade and oil industry sectors, SOCAR plans to open a representative office in Calgary. Canada has fields with large stranded oil and gas reserves, and SOCAR can be engaged in developing them.