Georgia is based on full democratic principles since independence in 1991 and is an established democracy. There is significant foreign investment flow into the country and state assets including the Georgian Railway, TBC Bank and Bank of Georgia which have been listed on the London Stock Exchange.
|LT Foreign Credit Rating||S&P: BB-, Moody’s: Ba2, Fitch: BB|
|GDP Per Capita||US$ 4,345|
|GDP Growth Rate (2018)||4.9%|
|Unemployment Rate (2018)||12.7%|
| Doing Business 2018
| Land Area
|Major Industries||Tourism, Agriculture, Wine, Energy, Machine Tools, Mining, Chemicals.|
Georgia benefits from an established infrastructure.
- AIOC Early Oil Pipeline (830km) runs from Caspian Sea in Azerbaijan (Baku Port), to the Black Sea (Supsa Port). With a capacity of 145 MBOPD, it is operated by BP and passes through GOG’s block XIM.
- Baku-Tbilisi-Ceyhan (BTC) Oil Pipeline (1,760km) runs from the Caspian Sea to the Mediterranean Sea. With a capacity of 145 MBOPD, it is operated by BP and passes through GOG’s block VIII.
- Trans-Anatolian Gas Pipeline TANAP that will supply gas to Central Europe. The South Caucasus Gas Pipeline (‘SCP’), which has a capacity of 8.8BCMPY, runs 692 km from Azerbaijan’s offshore gas field, Shah-Deniz, to Erzurum, Turkey. Completion of first phase is expected in 2018 and by 2020 gas will be delivered to Europe.
Though the country has been subject to extensive geological and geophysical studies, with significant historic data available, it is an under-explored and under-developed productive oil and gas region. There is significant potential for conventional and shale oil resource plays proven by the regional source rocks (Middle Eocene, Cretaceous and Maikop) though very limited use of modern technologies has been applied to date (seismic, directional drilling, fracture stimulation) to truly exploit the significant potential. During the 1980s production peaked at 70,000 bopd from the Samgori field alone. The country is currently producing a total of 1,500 bopd with defined development plans in place to drastically increase production levels, which also includes the exploration of shale.
Georgia has positive fiscal regimes and the country benefits from stable, simple, transparent and investor friendly environment. Production Sharing Contracts (‘PSCs’) and fiscal terms with regards to oil are positive for investors.
|Cost Oil||Max 50% of the total available oil and gas|
|Profit Oil||~40% before payback; ~35% after payback|
|Mineral usage Tax|
|No VAT and property tax||Not Applicable|
* – Payed from State share of oil by GOGC on behalf of Investor.