Georgian Sector of Black Sea has High Potential

In a recent radio address by Georgian President Eduard Shevardnadze, he said he expects that Georgia might be able to meet its own oil requirements within the next few years. He said he was informed by Anadarko Petroleum that the results of research in the Georgian sector of the Black Sea confirmed the possibility of oil and gas deposits.

The president noted that at the moment there are seven or eight foreign oil companies working in Georgia, including Frontera and CanArgo, which are not only involved in exploration, but in production also. He noted in particular that CanArgo recently used directional drilling to restore an old well at the Ninotsminda field and is currently producing 170 tons of oil per day there.

The president expressed certainty that positive results would be received in the near future at the Dedoplistskaro, Taribana and other fields, where foreign companies are working and have invested tens of millions of dollars over several years. "Today almost nobody doubts that Georgia has quite large oil and gas resources," he said.

The Georgian leader said that the Anadarko representatives "are convinced that there are rich deposits of oil and gas in the Georgian sector of the Black Sea and that with the use of modern technology their extraction is totally possible." He also said that the southern-gas pipeline corridor has entered the practical implementation stage and in two to three years Georgia will receive a very serious source of natural gas.

According to agreements, Georgia would receive 5% of the Azerbaijani gas transported through the pipeline to the world market. "This is more than 1.5 billion cubic meters of gas per annum," he said, adding that if necessary Georgia would be able to buy extra gas at a reduced price.