Zenith Energy to replace onshore line pipe, upgrade tankers in Azerbaijan

zenith 22Zenith Energy Ltd, international oil and gas production company operating the largest onshore oilfield in Azerbaijan, has decided to replace 4,000 metres of line pipe across its field area in Azerbaijan by the close of 2018

Delivery of the first batch of line pipe is expected to take place within the next 14 days. The line pipe replacement programme will begin immediately upon delivery of the materials.

The installation of new line pipe is expected to minimise oil loss during transportation from the well to Zenith's field oil processing and storage facility and reduce restrictions to oil flow from active production wells, a lowering of line pipe pressure.

Zenith further plans to begin the reconstruction of a 2000 cu/m oil storage tanks during September. It is expected that further storage tanks will undergo reconstruction work later in the year in Azerbaijan.

The company has also completed two comprehensive geological studies to optimise the selection of potential drilling locations and workover opportunities across the Muradkhanli, Jafarli and Zardab oilfields in the region. The primary achievement of the study has been the identification of a new Mesozoic carbonate prospect running across the Muradkhanli and Jafarli oilfields in Azerbaijan.

Three distinct structures have been highlighted at the level of the upper Cretaceous, from West to East, whose structural highs are considered strong candidates for possible exploratory wells.

The study has also enabled the company to better understand the challenges presented by its existing production reservoirs, specifically the causes of the high water cut in many of Zenith's production wells. In addition, it has also provided a modern re-evaluation of the Eocene age reservoir levels comprised of sandstones, marly limestones and volcanic facies, which enable Zenith to begin the selection of new drilling locations in the area.

ESP Upgrade Programme

Zenith’s ESP Upgrade Programme has resulted in the installation of new electrical submersible pumps in 11 wells located across the Muradkhanli and Jafarli oilfields.

The benefits include:

· New technology has enabled some of the 11 new electrical submersible pumps to be installed at a depth of approximately 2,500 meters. All of the previous electrical submersible pumps installed in Zenith's field had a maximum setting depth of approximately 1,500 meters.

· Significant reduction of the production decline rate, approximately 12 per cent per annum, and minor production increase (57 bopd) across these 11 wells.

· Stabilisation of production achieved through the increased reliability offered by new ESP technology. Previous ESP technology often failed, causing production downtime.

Andrea Cattaneo, CEO of Zenith, commented, “We now return to the Zardab field with the full capability to achieve the results that have eluded us thus far. The geological work performed during recent months has significantly enriched our understanding of the field's geology, and further substantiated our confidence in the transformational potential of our Azerbaijan asset.”

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