Georgian agency terminates contract with Kazakh’s Aksai

Photo: Georgian agency terminates contract with Kazakh’s Aksai / Oil&Gas

Tbilisi, Georgia, March 10

By Nana Kirtzkhalia - Trend:

The State Agency for Regulation of Oil and Gas Resources of Georgia has terminated the contract with Georgian-Kazakh Aksai-BMC by depriving it of its license. The state agency released information about the termination of the contract in its special statement on March 10.

The reason for termination of the agreement of April 3, 2007, and depriving Aksai-BMC of its license was the fragrant violation of the contract's terms by the company, in particular, the non-fulfillment of its obligations, the state agency's statement said.

The agency clarified that it extended the time of fulfillment of the company's obligations, in order to support the investment of the Georgian government, but despite this and the repeated warnings, Aksai-BMC again failed to meet the conditions of the contract. In this regard, in accordance with the law, it was sent a notice of termination of the contract and revocation of the license.

The contract to conduct geophysical and geological work, drill new wells, and rehabilitate existing wells in the contract areas was signed between Aksai-BMC and the State Agency for Regulation of oil and gas reserves of Georgia for 25 years.

The company carried out work on the licensed Block V, located in western Georgia in accordance to the signed documents. The total area of the block is 5,770 square kilometers.

Under the 25-year program, Aksai-BMC carried out work on exploration and production of oil in Georgia's regions such as Guria, Samegrelo and Imereti. The company received the relevant license in the summer of 2006 after winning the tender.

Aksai's Georgian partner is BMC business management consulting group. Aksai and its subsidiaries have successfully carried out work on exploration and production of oil in Kazakhstan for 50 years.

Plans are to attract a new investor though a tender, according to the state agency's statement.

On October 9, 2013, Aksai-BMC brought a suit in Tbilisi City Court demanding nullification of the decision of the oil and gas agency. On February 11, 2014 the court decided to send the case to the civil cases panel.

Translated by L.Z.

Edited by C.N.

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