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Georgia-Ossetia Conflict Damages Georgia-based Energy Companies

Oil&Gas Materials 19 September 2008 14:16 (UTC +04:00)

Georgia, Tbilisi, 19 September / Trend Capital corr. N.Kirtskhalia/ A gross amount of diesel fuel and petrol was imported to Georgia from Azerbaijan during the Georgia-South Ossetia conflict so as to prevent fuel shortage in the country, the Council of Oil Products Importers, Producers and Consumers of Georgia said on 18 September.

The conflict caused gross damage to private companies. "The situation at LUKoil and Vissol petrol stations in the Kurta and Tamarasheni villages is still indefinite. Petrol stations were destroyed and the petrol stolen in Samgrelo, Council said.

State Oil Company of Azerbaijan (SOCAR) intends to supply up to 55-60% of all oil products to Georgia by the end of the year, head of SOCAR Energy Georgia Mahir Mammadov said before.

"In August, the percentage of Azerbaijani oil products in the Georgian market reached 75% due to the Georgia-South Ossetia conflict and closing of Black Sea ports. The index reached 100% on the days of conflict," Mammadov said.

SOCAR will supply 350,000 tons of oil products this year. Supplies amounted to 180,000 within first six month of 2008. A total of 200,000 tons of oil products was supplied to the country in 2007.

SOCAR Georgia constructs a large base in Tbilisi to store oil products. The project costs $15mln. The company plans to complete construction by the end of 2009 to store petrol, kerosene, bitumen, liquefied gas and black oil. The square of the base will total 5 hectares.

Co-founders of SOCAR Georgia are SOCAR (51%), Petro-Trans FZCO (32.7%) and Ivan Chkhartishvili (16.3%).

The correspondent can be contacted at [email protected]

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