This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview

Georgia has 2.16 million metric tons of proven oil reserves (category 1P) as of January 1, 2016, but only a marginal amount has been exploited.  Domestic natural gas reserves are estimated at 1.9 billion cubic meters (category 1P) as of January 1, 2016; however, little natural gas is being produced primarily due to retracted production activities.  Most of country’s demand for oil and gas products is met through imports.
 
Together with business partners, BP has been operating energy transit projects in Georgia for 19 years. BP in Georgia is the lead investor and operator of Baku-Tbilisi-Ceyhan (BTC) pipeline, South Caucasus gas Pipeline (SCP) and Western Route Export Pipeline (WREP) also known as Baku-Supsa pipeline. In April 1999, the Baku‐Supsa pipeline was opened to transport oil from the Caspian Basin to Western markets via Georgia’s Black Sea terminal at Supsa.  The Baku‐Tbilisi‐Çeyhan (BTC) oil pipeline opened in 2006, transporting oil from Azerbaijan to Çeyhan, a Turkish port on the Mediterranean Sea.  The South Caucasus (Shah Deniz) natural gas pipeline opened in 2007 and runs from Baku to Erzurum in Turkey through Georgia.
 
BP invested more than $1.5 billion into energy projects and sustainable development initiatives in Georgia. Major part of BP’s contribution to Georgia is in providing gas from SCP for domestic use as well as local employment and taxes. BP employs more than 500 people and generates business for local suppliers and contractors.  Recently BP has started expansion of the SCP bringing additional gas supply opportunity and $2 billion investment to the country.  SCP expansion project is part of the Southern Gas Corridor along with the TAP and TANAP pipelines, which is expected to provide 16 billion cubic meters per year (bcma) of gas to millions of consumers in Georgia, Turkey, Greece, Bulgaria and Italy.
 
A recently completed USAID‐financed gas pipeline makes available industrial levels of natural gas to the Poti Free Industrial Zone adjacent to Poti Port.
 
In July 2013, BP announced the selection of the Trans-Adriatic Pipeline (TAP) as the chosen route for gas from the Shah Deniz II oil field in the Caspian Sea basin.  The TAP will carry gas from Turkey, though Greece and Albania, and across the Adriatic Sea to Italy, but not before passing through Georgia.  To construct this new pipeline and related infrastructure, BP plans to spend around $2 billion in Georgia alone over the next few years, the largest ever foreign investment in the country.  Gas from Shah Deniz II is expected to begin flowing in 2019.

 

OGS Best Prospects/Services
 

The government would like to attract more international companies for exploration and development of on and offshore oil and gas reserves through the Georgian Oil and Gas Corporation (GOGC).  By law, GOGC participates in all exploration and extraction through production sharing agreements (PSAs) and operates the major domestic gas transmission pipeline.
 
With three major pipelines crossing Georgia, pipeline maintenance services and equipment are in demand.  Other oil and gas infrastructure require similar attention.

  

OGS Resources

 

BP Caspian  
Georgian Oil and Gas Corporation
Ministry of Energy
Tbilisi Yellow Pages ‐ Energy & Energy Resources Section

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