Blackwood Company is lying about their contract. Here’s a guide on how you can complete the Azani Blackheart quest in Oblivion Remastered.

In Oblivion Remastered, you must complete quests for various factions if you wish to rise through their ranks. Azani Blackheart is one such quest that promotes you to the Warder rank in the Fighters Guild. This quest involves you helping a person named Modryn, whom the Blackwood Company lied about by claiming they completed a contract to kill Azani Blackheart, a powerful Nightblade.
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Initiating Azani Blackheart Quest in Oblivion Remastered

First, you have to complete the More Unfinished Business quest to unlock this mission. Once you do, go and talk to Modryn Oreyn at the Chorrol Fighters Guild to start the quest. He tells you to visit his house after dark to talk about the Blackwood Company. However, you do not need to wait until nighttime. You can talk to Modryn as long as he is in his house.
Modryn reveals that he suspects the Blackwood Company never completed their contract, which was given by Argoth the magician to kill Azani Blackheart. Instead, they made a deal with Azani and gave away Argoth’s name in return for money from Azani. This is the only explanation Modryn arrived at after Argoth was suddenly assassinated.
He then tells you to accompany him to the location where Azani Blackheart might be hiding, to possibly kill him and prove that the Blackwood Company lied. If you accept the mission, he tells you to meet at the Fighters Guild in Leyawiin.
Going to Arpenia With Modryn Oreyn

After you meet up with Modryn, he tells you to accompany him to Arpenia, a dungeon in Leyawiin. He marks the location on your map, and you can instantly fast-travel there. Once you arrive at the ruins, explore for a bit and then talk to Modryn again. He informs you that Azani is not in Arpenia. If you do not get the dialogue option, roam around the area a while longer.
Currently, there is a bug that can cause the quest to complete after you talk to Modryn. If you encounter this bug, we suggest loading the autosave that automatically triggers when you enter Arpenia. Doing so allows you to experience the rest of the mission properly.
Once Modryn says that Azani is missing, he suspects another dungeon named Atatar, where Azani might have moved. The good news is you won’t have to find anything yourself, as Modryn walks there on his own. You just have to follow him. Try not to run too far ahead or lag behind, as Modryn stops to wait for you.
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Killing Azani Blackheart in Oblivion Remastered

Once you enter Atatar, Modryn once again becomes a follower and leaves the exploration to you. There are a total of three zones in Atatar that you have to go through. There are many traps along the way that you need to avoid. Most won’t be very effective against you. However, some traps can glitch Modryn and cause him to stop in place. To make him follow you again, backtrack and talk to him.
Additionally, there are many bandits along the way. Try not to fight more than two at a time. Moreover, Modryn cannot die, so use him as a distraction to hit enemies from behind. After you clear all the rooms, you should find the door to Atatar Loria, the place where Azani is. Be prepared before entering. Azani Blackheart is a powerful enemy. He is quick and attacks with a dagger enchanted with Drain and Fire effects.
Once you defeat Azani, loot his body to obtain Sinweaver, his enchanted dagger, and a ring. You then have to talk to Modryn and show him the ring as proof that you killed Azani Blackheart. This concludes the quest, and you rise to the Warder rank in the Fighters Guild.
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