Zenith Energy is to procure a fully automated hydraulic drilling rig for operations in the largest onshore oilfield in Azerbaijan.
The operator struck the deal for the Genesis BQ500 with lieum Services WLL (“Olieum”), an integrated oilfield services and equipment joint venture based in Bahrain.
Olieum has worked closely with Zenith to structure a unique lease arrangement that aligns the firm’s targeted growth plans and cash flows with its future equipment requirements.
The Genesis BQ500 is the latest generation, automated onshore hydraulic drilling rig to be manufactured by B Robotics W S.R.L, a founding partner in Olieum, and a leading Italian oil and gas innovation company specialising in the design and manufacture of advanced oil and gas drilling equipment.
The rig is expected to deliver enhanced automation, efficiency and safety to the Company’s drilling operations, whilst driving down costs and time-to-production.
This has largely been achieved through extensive research and development in modular rig design, and in key components including the monkey board, slips, lay-up and down machine, pipe containers, roughneck, subs and bits loader, and all the working floor tools.
Manufacturing of the Genesis BQ500 is scheduled to begin upon the fulfilment of the preliminary conditions detailed in the commitment letter. This is expected to take place in Quarter 4, 2017, with delivery anticipated in the second half of 2018.
Andrea Cattaneo, chief executive officer of Zenith, said: “I am very excited about our new partnership with B Robotics W. The BQ500 Genesis rig is an extremely impressive piece of machinery, offering a unique mix of technological innovation, reliability and efficiency.
“We know that our field in Azerbaijan has very significant quantities of oil, with independently assessed 2P reserves of 32.1 million barrels of oil, and our intention is to produce as much oil as possible in full safety.
“The advanced automated features of the BQ500, as well as its energy efficiency, will not only reduce our drilling expenses, but also make our operations faster and, at the same time, safer, by significantly reducing the margin for human error.”