TODAY.AZ / Business

Zenith Energy reduces interest rate on two credit lines in country

22 August 2019 [10:42] - TODAY.AZ

By Azernews

By Mirsaid Ibrahimzade

Canada’s Zenith Energy company, which is the operator for development of Muradkhanli-Jafarli-Zardab block of onshore oil fields in Azerbaijan, has managed to reduce the interest rate on two credit lines for trade financing in the country to nine percent per annum.

The company said in a message that it has adopted a strategy aimed at debt financing in order to minimize the decrease in capital.

Andrea Cattaneo, CEO of Zenith Energy, said that they are taking important steps to gradually improve the company's debt position and minimize its dependence on issuing equity to finance the development of Zenith.

“We expect that in the coming period, the future success of our drilling operations will allow us to further significantly improve the balance,” he noted.

Earlier, Cattaneo said that the company intends to increase oil production at the Muradkhanli-Jafarli-Zardab block up to 1,000 barrels per day by late 2019. He emphasized that this will bring a surplus of profit and this does not require large expenditures.

Zenith Energy is an international oil and gas production company operating the largest onshore block of oil fields Muradkhanli-Jafarli-Zardab in Azerbaijan.

The company has recently attracted funds of 607,000 pounds from shares in Canada and the UK to increase investment and general business operations in Azerbaijan. Zenith Energy plans to increase its production directly through drilling campaign.

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 established its subsidiary company Zenith Aran Oil Company Ltd for production operations in these three fields.

The Muradkhanli-Jafarli-Zardab block is located in the Yevlakh-Agjabadi oil and gas area of Imishli region of Azerbaijan. The Muradkhanli field was discovered in 1971, Jafarli - in 1984, and Zardab - in 1981.

URL: http://www.today.az/news/business/185614.html

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