Baku, Azerbaijan, Oct. 29
By Maksim Tsurkov - Trend:
Canadian Zenith Energy Ltd. oil and gas company has received a presidential decree in Azerbaijan to acquire three producing onshore oil fields, the message of the Newswire Canadian portal said Oct.28.
The company has been in negotiations for the last 15 months with the SOCAR (State Oil Company of Azerbaijan Republic), according to the message.
"Approval by Presidential Decree at the end of negotiations is required for a contract with SOCAR according to the internal process under the Laws of the Republic of Azerbaijan," said the message. "The Presidential Decree has just been signed by the President of the Republic of Azerbaijan and this event triggers the company's obligation for continuing disclosure."
Some additional procedural steps will be implemented before the hand-over of the Muradkhanli, Jafarli and Zardab fields to Zenith, the company said.
The three fields have a compounded acreage of 642.4 square kilometers, and produce nearly 315 barrels of crude oil per day at present, according to the message. Gas is also produced, but in low quantity, and is used at the site, the portal said.
"Zenith will be the operator of the concession and will have an 80 percent interest, while the local state party will retain 20 percent," the company said. "The license will have a duration of 25 years. Zenith's technical personnel have already been allowed access to the fields to inspect the current operation and evaluate the existing infrastructure."
Due to the confidential nature of negotiations, economic details of the acquisition will be released at a later date. The contract will also be subject to regulatory approval in Canada.
Earlier, Zenith Energy Ltd. opened an office in Baku, the capital of Azerbaijan.
The Muradkhanli-Jafarli-Zardab Block is located in the oil region of the Yevlakh-Agjabedi Imishli region of Azerbaijan. The Muradkhanli field, which is included in the contract area, was opened in 1971, Jafarli- in 1984 and Zardab- in 1981.
Remaining recoverable oil reserves of the block are 1.8 million tons with gas - 36 million cubic meters.
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