Baku Energy Forum - ZENITH inks deals with field service firms for Azerbaijani oil fields

ZENITH inks deals with field service firms for Azerbaijani oil fields


Zenith Aran Oil Company, a wholly owned subsidiary of Canada’s Zenith Energy Ltd., has signed a number of agreements with various oil field service companies for the Muradkhanli, Jafarli and Zardab oil fields in Azerbaijan, a source in the Canadian company told Trend.

Smape Srl, an internationally recognized Italian coiled tubing company, has been contracted to perform several well interventions in the Muradkhanli, Jafarli and Zardab fields, the first of which will be well M-195, according to the source. A coiled tubing unit (CTU) operated by Smape arrived June 24, 2017 to begin work and restore production at this well.

The arrival of the CTU resulted in the creation of a third team, named Team C, which will operate this unit and complement the field rehabilitation activities of Teams A and B, said the source.

Team C is expected to play a particularly important role in the rehabilitation of wells in the Zardab field, many of which are plugged with sand from the reservoir. Three wells in particular, one of which will initially be chosen for a workover in 2017, produced in excess of 500 barrels of oil per day for a short time before they became plugged-up with sand.

The design of the Schlumberger Electric Submersible Pump (ESP) scheduled for installation at well M-195 has been completed. This is expected to optimize production and reserves recovery. A service contract between Zenith’s subsidiary in Azerbaijan and Schlumberger is being finalized and delivery of the ESP is expected by mid-July 2017.

Zenith also announced that it has signed a framework contract with Baker Hughes Services International LLC, one of the world’s largest oil and gas service companies, for the provision of fishing equipment.

This equipment is significantly more modern and advanced than the fishing tools previously used onsite.

"This technology is expected to substantially increase the speed of operations at well M-45," the source said. "Delivery of this equipment has taken place and the company can confirm that fishing operations utilizing these tools have already commenced.

Zenith also said that the more powerful workover rig operated by the external drilling company, given the name of Team B and employed for the sidetrack of well M-195, is now fully operational at the well M-45 location.

Azerbaijan’s Muradkhanli, Jafarli and Zardab oil fields are controlled and operated by Zenith Aran.

Azerbaijan’s state oil company SOCAR and Zenith Aran Oil Company signed March 2016 a rehabilitation, exploration, development and production sharing agreement on the Muradkhanli, Jafarli and Zardab oil fields. These fields cover an area of 642.2 square kilometers. Production under the Zenith banner began August 11, 2016.