Europe / Caspian / CIS

Country profile: Georgia

Location:

Southwestern Asia, bordering the Black Sea, between Turkey and Russia

Climate:

warm and pleasant; Mediterranean-like on Black Sea coast

Terrain:

largely mountainous with Great Caucasus Mountains in the north and Lesser Caucasus Mountains in the south; Kolkhet'is Dablobi (Kolkhida Lowland) opens to the Black Sea in the west; Mtkvari River Basin in the east; good soils in river valley flood plains

Size:

69700 sq. km total (Land area: 69700 sq. km )

Population:

4,630,841 (July 2008 est.)

Languages:

Georgian 71% (official), Russian 9%, Armenian 7%, Azeri 6%, other 7% note: Abkhaz is the official language in Abkhazia

Government:

republic

Capital city:

T'bilisi

Legal system:

based on civil law system; accepts compulsory ICJ jurisdiction

Currency:

lari (GEL)

Licensing:

Country profile

The Caucasus region sits between the Black Sea on the West and the Caspian Sea on the East, and comprises the newly independent states of Armenia, Azerbaijan, and Georgia. Since 2004, these three countries have been included in the EU’s Neighborhood Policy .

As herein defined, the Caucasus Region consists of two highly dependent net energy importers surrounded by some of the world’s energy giants (i.e. Russia, Iran, and to a smaller but growing extent, Azerbaijan). Energy priorities of the Caucasus countries, therefore, are two-fold: to diversify their energy supplies; and to cash in on transit revenues as their neighbors develop export facilities which traverse their territory. Three of the new export pipelines will pass through Georgia, while none are scheduled to cross Armenia due to its unstable bilateral relationship with Azerbaijan.

The Soviet Union bequeathed a number of problems to the Caucasus countries, including artificially drawn national borders and centrally-planned economies that were heavily dependent on Russia. Even before Azerbaijan and Armenia declared independence, fighting broke out in 1988 between the then-Soviet republics over the disputed area of Nagorno-Karabakh , and separatist conflicts sparked in Georgia soon after independence. Some of the regional conflicts that flared in different parts of the Caucasus throughout the 1990's are now dormant, but few have been officially resolved.Robert Kocharian has been President of Armenia since March 1998 and was re-elected to another term in February 2003, with a run-off in March 2003.

Georgian President Mikhail Saakashvili was elected in January 2004 after the resignation of Eduard Shevardnadze in November 2003. Saakashvili also won a victory in Ajaria, one of three separatist regions in the country, when the leader resigned in May 2004. The central government still holds little power over the other pro-Russian regions of Abkhazia and South Ossetia, and Georgia has amassed 10,000 troops on the border of South Ossetia. Armenia and Georgia are relatively small producers and consumers of energy, however important oil and gas transit routes cross these countries.

Energy production and consumption

Oil

Gas

Production:

1,979 bbl/day (2005 est.)

14 million cu m (2005 est.)

Consumption:

13,400 bbl/day (2005 est.)

1 billion cu m (2007 est.)

Exports:

2,400 bbl/day (2004 est.)

Imports:

13,530 bbl/day (2004 est.)

1 billion cu m (2007 est.)

Reserves:

35 million bbl (1 January 2006 est.)

8 billion cu m (1 January 2006 est.)

Major fields:

Georgia - recent news

04 Mar 24	Georgia: Block Energy announces Project III resource upgrade Block Energy, the development and production company focused on Georgia, has announced upgraded internal resource estimates for the Rustavi and Teleti fields. The Company has launched the farm-out process for Project III, targeting the development of a gas resource of strategic significance to the Georgian state.
12 Feb 24	Georgia: Block Energy commences Project III farm-out process Block Energy, the development and production company focused on Georgia, has launched the farm-out process for Project III, targeting the development of a gas resource of strategic significance to the Georgian state through the appointment of LAB Energy Advisors, a leading independent energy advisory company.
08 Feb 24	Georgia: Block Energy announces Independent Engineering Report confirms prospects for Project III farm-out process Block Energy, the development and production company focused on Georgia, has announced an Independent Engineering Report indicating over 1 TCF of 2C contingent gas resources in the Patardzueli and Samgori fields in licence XIB with a Net Present Value of more than USD 500 MM.
16 Jan 24	Georgia: Block Energy announces Block XIB commercial Carbon Capture and Storage opportunity Block Energy, the development and production company focused on Georgia, has announced a study identifying a Carbon Capture and Storage ('CCS') opportunity within the Company's Block XIB with the potential to support a major net-zero CO2 industrial hub.
15 Dec 23	Georgia: Block Energy releases Project III Presentation Block Energy, the development and production company focused on Georgia, has released a presentation focussed on Project III, the appraisal and development of gas resources in the Lower Eocene and Upper Cretaceous formations across the Company's blocks.