U.S. company suspends gas production in Georgia
By Jamila Babayeva
U.S. Frontera Resources Corporation unexpectedly suspended the gas production near the village of Iormuganlo in Georgia's Kakheti region.
The reasons for suspending the work on gas production hasn't been specified yet, director of Oil and Gas Agency of Georgia's Energy Ministry, Giorgi Tatishvili told reporters on July 2.
The gas production was started last week and the Frontera announced about large gas reserves (42 billion cubic meters).
Tatishvili said that the U.S. company violated the rules of giving annual report and, therefore, got a warning from the Georgian side. The deadline for submission of the report on the geological gas reserves has been extended by 30 days.
Frontera Resources, an international oil and gas company, was founded in 1996 to pursue international exploration and production opportunities in emerging markets.
The implementation of the project in Mtsare Khevi field began in 2011. The field consists of multiple objective reservoirs that are situated at depths between 200 meters and 1,100 meters.
Mtsare Khevi was partially delineated from 1989 to 1994, but the field was never fully developed and only partially produced gas. Frontera conducted a field study in 2007 that concluded the field contains significant undeveloped oil and gas potential.