Int’l consortium to launch exploration on two Georgian licensed blocks
By Nazrin Gadimova
A Georgian-British international oil consortium is expected to start prospecting and exploration work on two Georgian license blocks soon.
The founders of the consortium are the Georgian oil company Norio registered in the Virgin Islands and British Georgia Oil & Gas Limited, Georgia Oil and Gas Triality Limited and Georgia Oil and Gas Norio Limited.
According to the Georgian Oil and Gas Corporation, the production sharing agreement between the Georgian government and the consortium was signed in May 2013.
The consortium won a prospecting license in conclusion of an international tender which Georgia Department of Natural Resources conducted on June 5, 2012.
Bonus agreements for both blocks amount of $1 million. Over the next four years the consortium will carry out comprehensive geophysical studies at each block, including 2D and 3D work.
According to the standing agreement, $25 million is to be invested in both blocks.
The territory of one block belongs to Tbilisi, Mtskheta-Mtianeti and Tetri Tskaro, and the territory of the other one - to Tbilisi, Mtskheta-Mtianeti and Sagarejo district.
Georgia Oil & Gas Limited has operated on three license areas since 2011, as well as has owned a general license to use oil and gas resources in the license blocks jointly with Norio.
It has invested over $7.2 million in 2012, and in 2013 the investment will amount to $7 million.
Georgia Oil & Gas Limited, which is an oil and gas exploration, development and production company, was incorporated on the British Virgin Islands, on April 2, 2008.