Canadian company installs new facility on Azerbaijani offshore field


    Zenith Energy Ltd. the dual listed international oil & gas production company operating the largest onshore oilfield in Azerbaijan, has announced that a latest generation Schlumberger electrical submersible pump (ESP) has successfully been installed in well M-45. Current production is 49 BOPD.

    Report informs referring to the company, Zenith is confident that oil production at well M-45 could increase as technical adjustments are made and optimum production parameters are achieved.

    The advanced technology of the ESP installed in well M-45 enables the company’s field personnel to monitor flow rates and temperature as well as to input reservoir pressure and electrical parameters to optimise production. It should be noted that this is the first ESP of this sophistication to be installed in the company’s field in Azerbaijan.

    The company has identified a further 11 wells with obsolete and unreliable existing ESP technology which are deemed capable of significant increases in production following the installation of the latest generation electrical submersible pumps. The new ESPs have been ordered from Schlumberger and Baker Hughes and designed in accordance with the specifications of each well.

    Procuring the ESPs from two of the world’s most renowned oilfield technology companies will enable Zenith’s operational team to comparatively assess the respective advantages of both types of latest generation ESP, and will also mitigate the risk of possible delays in production and transportation.

    Zenith’s operational team expects the ESP replacement activities undertaken across the 11 wells will generate a total increase of 219 BOPD over existing production.

    Notably, Canadian Zenith Energy Ltd. has established Zenith Aran Oil Company Ltd in Azerbaijan. Operations on the block of deposits are conducted by Aran Oil, established by Zenith Aran Oil Company and State Oil Company of the Azerbaijan Republic (SOCAR). On March 16, 2016, SOCAR and Zenith Aran Oil Company Ltd signed an agreement on exploration, development and distribution of production (PSA) from the block, which includes the Muradkhanli, Jafarli and Zardab fields. The agreement was ratified by Milli Majlis (Azerbaijani Parliament) on June 14, and the field development began on August 11, 2016.

    The share of Zenith is 80%, SOCAR – 20%. The agreement is signed for a period of 25 years with the possibility of an extension for another 5 years. The total area of the fields is 642.4 square km.

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