Baku, Azerbaijan, May 18
By Leman Zeynalova - Trend:
Canada’s Zenith Energy, which is the operator of Muradkhanli-Jafarli-Zardab, the largest onshore block of oil fields in Azerbaijan, has announced record revenue from its operations in Azerbaijan.
“The company is pleased to confirm that its gross oil production revenue has reached a new all-time record high since Zenith began operations in Azerbaijan. The company's subsidiary generated revenue, gross of commissions and transportation expenses, of approximately $505,000 for its oil production during the month of April 2018,” Trend learned from the company.
Mike Palmer, Chief Operating Officer, Zenith Aran, the company's Azerbaijan-based fully owned subsidiary, said that the company has achieved a number of key milestones using its own equipment.
“This has allowed us to greatly reduce our operational expenditure, and this is all the more positive when set against the backdrop of the company achieving record oil production revenue in Azerbaijan,” added Palmer.
Azerbaijan’s state oil company SOCAR and Zenith Aran Oil Company signed a Rehabilitation, Exploration, Development and Production Sharing Agreement (REDPSA) in March 2016 for a block that includes the Muradkhanli, Jafarli and Zardab oilfields. These fields cover an area of 642.2 square kilometers. Production under the agreement began in August of 2016.
Zenith holds a 80-percent participating interest in the three fields within the contract area, while SOCAR retains the remaining 20 percent. The duration of the agreement is 25 years, with a potential extension of five additional years.
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