Azernews.Az

By Sabina Idayatova

Prospects for deepening bilateral cooperation were discussed on Monday at a meeting of Georgian Prime Minister Bidzina Ivanishvili and Steve Nicandros, Chief Executive Officer of the U.S.-based international oil and gas company Frontera Resources.

During the meeting Nicandros announced Frontera's plans to increase investment in the Georgian economy, according to the prime minister's press service.

Houston-based Frontera was founded specifically for the purpose of operating in new markets. Frontera started its operations in Georgia in 1997.

Currently, the company is focused on identifying the geology of potential deposits. The company invested $100 million in exploration work, which enabled it to determine the boundaries of two potentially promising oil deposits. According to some estimates, these deposits, located in the upper and lower parts of the Mtkvari Basin, may be commercially viable.

Earlier, another oil and gas exploration company, Israel's Elenilto, expressed interest in Georgia's market. The company presented an action plan to be implemented over the next four years at a meeting with Energy Minister Kakha Kaladze last week.

Elenilto has a license for the exploration and extraction of oil and gas resources in the 11th license block, located in the Sagarejo and Gardabani districts. The company acquired a license for 25 years and pledged to invest $41 million in the operations.

Elenilto will carry out operations in Georgia via LLC Elenilto Georgia. The company's shares are placed on the NASDAQ, AIM and TASE stock markets.

Georgia is a relatively small producer and consumer of energy, however, it is located in a region rich in energy resources. Furthermore, important oil and gas transit routes cross the South Caucasus country.