BAKU, Azerbaijan, Nov.10
By Leman Zeynalova – Trend:
Canada’s Zenith Energy Ltd. announces that, in agreement with Azerbaijan’s state oil company SOCAR, the Contract Exploration Area (CEA) of its 25-year REDPSA (Rehabilitation, Exploration, Development and Production Sharing Agreement) has been terminated, Trend reports citing the company.
Following the termination of the CEA, the company no longer has any oil production or exploration interests in the Republic of Azerbaijan.
The company’s Azerbaijan subsidiary has recently received payments for a total of approximately $85,000 from SOCAR for past oil production.
Further, the company's local subsidiary expects to receive a final payment in due course from SOCAR and shall update the market accordingly upon receipt.
Azerbaijan’s state oil company SOCAR and Zenith Aran Oil Company signed a 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.
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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