Zenith Energy ceases all oil production operations in Azerbaijan
Baku. Canadian Zenith Energy company has handed over the Contract Rehabilitation Area to Azerbaijan’s state oil company SOCAR, Trend reports with reference to Zenith Energy.
As a result of the handover, Zenith has ceased all oil production operations in Azerbaijan and all field production personnel, approximately 170 employees, have been transferred to a division of SOCAR, reads the message from the company.
The company confirmed that its Azerbaijan subsidiary has recently received a payment for oil production of approximately $508,000 from SOCAR.
In view of Zenith's strategic focus on pursuing large-scale oil production and development opportunities in Africa, the company earlier decided to hand over the Contract Rehabilitation Area to SOCAR.
Earlier, the Zenith Energy said that after the completion of the handover process, its sole operational focus in Azerbaijan will be in relation to performing exploration activities.
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.