"If the production increases by 700 barrels per day and reaches 1,000 barrels per day by end of 2019, this will create a surplus of gain. Making an increase of production will not require much marginal cost. There will be a very good influx of cash when we produce 1,000 barrels per day," he told Total Market Solutions.
Talking about the newly commenced deepening operations at C-37 well of Jafarli field, Cattaneo said that this deepening will bring two results: achieving the production similar to C-22 (700 barrels per day or more) and then going deeper.
"As soon as we finish C-37 in a month, we will go to C-30 in 15 days. We will announce soon the preparation of well site. Then we will together with SOCAR select the exact location of Zen-1, which will be very much influenced by the results of C-37 and C-30," he added.
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. Production under the agreement began in August 2016.
Zenith holds an 80-percent participating interest in the three fields within the contract area, while SOCAR retains the remaining 20 percent. The agreement is for 25 years, with a potential extension by five additional years.
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.