Georgia and Austrian oil and gas company OMV Petrom S.A. signed an agreement for the exploration and production of oil and gas on the Black Sea shelf.
According to the press service of the Ministry of Economy and Sustainable Development of Georgia, the contract provides for the production of oil and gas, as well as the collection and processing of geological and geophysical data on the continental shelf of the Black Sea (area 5,282 km2) for a period of 25 years.
“Today we signed a production sharing agreement with OMV Petrom. The contract is for 25 years with the right to renew for 5 years. According to the agreement, this largest company will carry out exploration and production of oil and gas on the shelf of the Black Sea in part of Georgia. We hope that the search will be crowned with success, there are all signs of this, both geological and technical. This, naturally, will be associated with rather significant investments, ”said Giorgi Tatishvili, head of the State Oil and Gas Agency of the Georgian Ministry of Economy.
The agreement was signed by Tatishvili, the commercial director of OMV Petrom SA, Jose Rafael Duque-Ramirez, and the director of the company’s Business Assessment and Research, Bernhard Krain. The Austrian company itself won a tender for oil production on the Black Sea shelf off the coast of Georgia in the summer of 2020. The company plans to conduct two- and three-dimensional seismic surveys, and at the last stage drilling will begin. The cost of the drilling stage depends on the results of the research.
Before signing the contract, the Prime Minister of Georgia Irakli Garibashvili met with the leaders of OMV Petrom S.A. The Prime Minister of Georgia noted that the Georgian government welcomes cooperation with OMV Petrom S.A., a subsidiary of OMV, one of the ten largest oil companies in Europe, and is ready to support it in the successful implementation of the project.
“We at OMV Petrom Corporation believe that the Black Sea has tremendous potential for local and regional economic growth and prosperity. We are really looking forward to the start of oil production in the Georgian waters of the Black Sea, which we consider to be a natural continuation of the regional expansion of our corporation, ”said Director of OMV Petrom SA Kristina Vechere after meeting with Garibashvili.
The Director of OMV Petrom SA thanked the Prime Minister of Georgia for the warm welcome, according to her, the Georgian government is open for business and is well aware of the strategic importance of the Black Sea.
According to the Oil and Gas Agency, in the territory of Georgia, oil exploration and production are being carried out in licensed areas. Six companies-investors are engaged in oil production in the country. Another seven companies carry out search work. The average annual production over the past ten years is 43.6 thousand tons.
Georgian media note that the cost of a similar project – the discovery of the “Domino” field in the territorial waters of Romania, which is associated with the Austrian OMV, is 1.5 billion US dollars. From the Black Sea countries, geological exploration is being carried out in Turkey, Russia, Bulgaria, Romania, and Ukraine.