Project Profile

Estimated value: US$500 million
Location: Azerbaijan
Area: 642.4 sq km
Estimated reserves: 1.8 million ton of oil & 36 mcm of gas
Production: 350 bopd
Exploration start-up:- 1971
Production start-up: -

The Muradkhanli-Jafarli-Zardab block is located in the oil and gas area of Yevlakh-Agjabedi-Imishli region of Azerbaijan. These fields cover an area of 642.5 square kilometres. Currently, the average daily oil production at these fields is 350 barrels. Small volume of gas is also produced at the fields and is used in economic and industrial activities. Muradkhanli field was explored in 1971, Jafarli in 1984 and Zardab in 1981. Totally 183 wells were drilled in these fields and 3.4 million ton of oil and 100 million cubic metre of gas were produced from the beginning of exploitation. Remaining oil reserves in the block are estimated at 1.8 million ton, while remaining gas reserves as 36 millions of cubic metre. Presently 77 wells are available in the exploitation fund, 64 out of which are in efficient well fund.

In March 2016, the State Oil Company of Azerbaijan (SOCAR) and the Zenith Aran Oil Company Ltd (subsidiary of a Canadian Zenith Energy) signed a PSA contract on onshore oilfield block Muradkhanli-Jafarli-Zardab. The contract was signed for 25 years. The Muradkhanli and Jafarly fields are very mature and currently produce small volumes of oil. Zardab requires further appraisal and remains undeveloped.The Muradkhanli field has two extensions, Muradkhanli Flank and Southeast Muradkhanli, which were previously thought to hold reserves of around 200 million barrels.

Operators:

Zenith Energy: 80% interest

SOCAR: 20% interest