Baku, Azerbaijan, Jan. 9
By Sara Israfilbayova - Trend:
Canada’s Zenith Energy intends to conduct mapping of the three Azerbaijani oil fields (Muradkhanli, Jafarli and Zardab) in a more effective way, the company CEO Andrea Cattaneo said in his interview to Core Finance.
“The geological study has been completed, so now we are mapping much better the three fields that we control. Now, we have a plan, which we couldn’t have at the start of our operation,” he said.
The CEO noted that the company has developed "an orchestra of financial instruments", including corporate bonds, convertible bonds, leasing, etc., which will help reduce the massive dilution in future.
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 oil fields. Zenith Energy Ltd. established its subsidiary company Zenith Aran Oil Company Ltd. for production operations in these three fields. Production under the agreement began in August 2016.
Zenith holds an 80-percent participating interest in the three fields within the contract area, while SOCAR retains the remaining 20 percent. The agreement is for 25 years, with a potential extension by five additional years.
The total area of the Muradkhanli, Jafarli and Zardab fields is 642.2 square kilometers, and according to the contract, it is divided into rehabilitation and exploration territories.
The Muradkhanli-Jafarli-Zardab block is located in the Yevlakh-Agjabadi oil and gas region of Imishli district of Azerbaijan. The Muradkhanli field was discovered in 1971, Jafarli - in 1984, and Zardab - in 1981.
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