Today.Az » Business » Canadian company attractes funds for operations in Azerbaijan
12 February 2019 [16:48] - Today.Az
By Leman Mammadova
The Canadian Zenith Energy Company has attracted funds for drilling operations in the Azerbaijani onshore field.
The company received 607,000 pounds from shares in Canada and the UK, Report.az informs.
The funds will be used to increase investment and general business operations in Azerbaijan.
Zenith Energy is an international oil and gas production company operating the largest onshore block of oil fields Muradkhanli-Jafarli-Zardab in Azerbaijan.
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.
The agreement was ratified by the Azerbaijani Parliament on June 14 and the 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 5 additional years.
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.
The total area of the Muradkhanli, Jafarli and Zardab fields is 642.4 square kilometers, and according to the contract, it is divided into rehabilitation and exploration territories.
In general, it is expected to produce 7.399 million barrels of oil from the onshore fields in Azerbaijan. While, production at Muradkhanli-Jafarli-Zardab block is expected to increase by 1.67 percent to 0.122 million barrels.