In view of Zenith's strategic focus on pursuing large-scale oil production and development opportunities in Africa, the Company will handover the Contract Rehabilitation Area ("CRA") to SOCAR, APA reports.
Zenith expects to shortly define the handover process of the CRA. It will continue to operate the CRA and maintain oil production activities in Azerbaijan without interruption until the handover is completed.
The Company expects to achieve a near total reduction of operating expenses in Azerbaijan upon completion of the handover of the CRA.
Current production from the CRA is approximately 180 barrels of oil per day.
As a consequence, Zenith will not proceed with previously planned well interventions in relation to wells C-37 and C-30 of the Jafarli oilfield, which is expected to increase the Company's free cash base.
The Company will provide further updates as appropriate.
Exploration - 25-Year REDPSA
The Company confirms that, once the handover of the CRA is completed, its sole operational focus in Azerbaijan will be in relation to performing exploration activities.