Georgia and its oil and gas industry: problems and prospects

The article discusses the issues of oil exploration and production in the Republic of Georgia. As it is known, hypotheses about the presence of large oil and gas reserves on the territory of Georgia were put by some scientists back in the nineteenth century.

However, the work carried out in the twentieth century led to the discovery of small-scale industrial volumes of oil. The author examines the history of oil production in post-Soviet Georgia. In his opinion, the actualization of the issue of oil exploration and production was the result of the aspirations of the Georgian leadership to achieve energy independence from key players in this market. The history of Frontera Eastern Georgia, established by agreement between the American corporation Frontera Resources Corporation and JSC Gruzneft, is considered in detail.

The article highlights the activities of numerous Indian, Israeli, Chinese, Hong Kong and Singapore oil companies in a separate block. It is noted that all these countries are states that are experiencing a shortage in oil production was the result of aspirations and petroleum products, and they are looking for a resource base around the world.

The article also analyzes Georgia’s efforts to develop the oil and gas shelf of the Black Sea. This analysis is carried out in the future from the first attempts to explore this shelf in the mid-late 1990s to the conclusion of new contracts in 2020.

In conclusion, a forecast of the possible development of the situation around oil production in Georgia is given.

1. Law of Georgia on the Procedure for Granting Concessions to Foreign Countries and Companies, 1996 // https://matsne.gov.ge/ru/document/view/28438?publication=2, accessed 12.10.2022. (In Russ.)

2. Bakirov E. A., Ermolkin V. A., Larin V. I., 1990. Geology of oil and gas. M.: Nedra. 240 p. (In Russ.)

3. Vakhania D. E., Mgeladze Z. V., 2006. Oil and gas content of the sedimentary cover of the Georgian block of the Transcaucasian intermountain region // Geology of Oil and Gas. No. 4. Рp. 14 – 21. (In Russ.)

4. Matveev I. V., 2017. Energy of Georgia. Overview of the current state of Georgia’s energy sector. Part 1 // https://matveev-igor.ru/articles/energetika-gruzii, accessed 01.11.2022. (In Russ.)

5. Novikov V. V., 2020a. Abkhazian oil: political and economic aspects // Geoeconomics of Energetics. No. 1 (9). Рp. 111–124. (In Russ.)

6. Novikov V. V., 2020b. Georgian Energy Industry and Russian Business: Political and Economic aspects // Geoeconomics of Energetics. No. 2 (10). Рp. 79 – 95. (In Russ.)

7. Shmeleva T. A., 2019. Features of Georgia’s Oil and gas sector and its Middle East vector // http://www.iimes.ru/?p=58240, accessed 01.11.2022. (In Russ.)

8. Austrian company OMV has received a license for oil exploration and production in Georgia // https://www.ekhokavkaza.com/a/30693963.html, accessed 15.11.2022. (In Russ.)

9. The Austrian-Romanian company will search for gas on the shelf of Georgia // https://sputnik-georgia.ru/20220331 /, accessed 01.11.2022. (In Russ.)

10. An American company is trying to put pressure on the Georgian Prime Minister // https://www.ng.ru/cis/2020-08-17/6_7939_georgia.html, accessed 01.11.2022. (In Russ.)

11. Former workers of an American company in Georgia held a campaign // https:// sputnik-georgia.ru/20200804, accessed 01.11.2022. (In Russ.)

12. Anadarko company is looking for a new partner in Georgia // https://www.trend.az/scaucasus/georgia/896440.html, accessed 15.07.2022. (In Russ.)

13. Georgian authorities will help workers dismissed from the American company // https://sputnik-georgia.ru/20200807/, accessed 01.11.2022. (In Russ.)

14. The authorities are not aware of the “colossal” gas reserves in Georgia // https://www.trend.az/scaucasus/georgia/2490655.html, accessed 01.11.2022. (In Russ.)

15. Gakharia: no one should question the business environment in Georgia // https:// sputnik-georgia.ru/20200724/.html, accessed 01.11.2022. (In Russ.)

16. The Georgian Oil and Gas Corporation has denied accusations of restricting the activities of Frontera // https://www.interfax.ru/world/585136, accessed 01.11.2022. (In Russ.)

17. Georgia has received another warning from the USA // https://regnum-ru.turbopages.org/regnum.ru/s/news/2833436, accessed 01.11.2022. (In Russ.)

18. Georgia terminates the contract with the American company Frontera after 20 years // https://eadaily-com.turbopages.org/eadaily.com/s/ru/news/2020/04/30, accessed 01.11.2022. (In Russ.)

19. Chinese companies will look for oil and gas in Georgia // https://teknoblog.ru/2016/10/30/70372, accessed 01.11.2022. (In Russ.)

20. The lender of the American Frontera claims its oil and gas block in Georgia // http://interfax.az/view/816414, accessed 01.11.2022. (In Russ.)

21. “This is a disaster”: US investors were accused of a major oil leak in Georgia // https://politexpert.net/22846062, accessed 01.11.2022. (In Russ.)

22. Elenilto will produce oil and gas in Georgia // https://bizzone.info/energy/2012/1346353704.php, accessed 11.11.2022. (In Russ.)

23. OMV Petrom will start gas production off the coast of Georgia by 2025 // https://sputnik-georgia.ru/20220714 /, accessed 01.11.2022. (In Russ.)

24. Anadarko Petroleum Corp intends to create a consortium with BP and Turkish Petroleum for the search and production of oil and gas on the Black Sea shelf of Georgia // https://sputnik-georgia.ru/economy/20050302/357294.html, accessed 15.07.2022. (In Russ.)