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OMV Petrom to contribute significantly to Georgia's state budget

Oil&Gas Materials 12 March 2021 15:06 (UTC +04:00)
OMV Petrom to contribute significantly to Georgia's state budget

BAKU, Azerbaijan, March 12

By Tamilla Mammadova – Trend:

OMV Petrom will start active work next year in Georgia, while an environmental impact assessment report will be prepared in 2021, Trend reports via the State Agency of Oil and Gas of Georgia.

Under the contract, the company will conduct oil and gas exploration and extraction in the Black Sea Continental Shelf for a period of 25 years. In addition, OMV Petrom will contribute $600,000 to the state budget within a month as a signing bonus, and if it finds oil or gas in the license area, it will pay the Georgian government an additional $5 million.

According to the head of the State Agency of Oil and Gas of Georgia, Giorgi Tatishvili, Ukraine, Russia, and Turkey are already extracting gas in the Black Sea basin. Romania has recently joined the ranks of these countries, where OMV Petrom has discovered quite large reserves of oil and gas. The search is underway in Bulgaria as well.

"OMV Petrom is more focused on gas because their internal study in the territorial waters of Georgia shows a high probability of finding a gas field," says Tatishvili.

"Bringing the process to the discovery requires solid investment. OMV Petrom would not have taken up the job if they had not expected a solid supply here. The share of the discovered product, oil or gas, is brought by the state for free. The share that will remain with the company should provide both reimbursements of expenses and profit. The economic assessment that has been made fully provides the basis for the fact that here is the stock that will give a profit to both the state and the company," Tatishvili said, adding that the company is expected to start drilling in 2024.

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