Georgia is located on the TransCaucasian Massif that extends from the Black Sea to the Caspian Sea. Before discovering biggest oil field for Georgia which resulted in peak production of 70,000 BOPD, exploration was going for Middle Miocene and Cretaceous formation at shallow Depth.
Since 1974 main exploration targets have been Middle Eocene, Upper Cretaceous and consequently Upper/Lower Eocene, Upper Miocene and Oligocene rocks at maximum depths of 3,500-4,000 m.
Very little exploration was done for deep Middle and Lower Eocene, Cretaceous and Jurassic (since 1990 only three 4500-5000 wells were drilled and negligible exploration has been done for gas).
Over 1.2 billion USD have been spent since 1994 without any exploration success or increase of production.
- Due to low oil price in 1990s first investor Companies were running projects with limited funds (limited seismic, limited studies) and performing risky E&P drillings
- In 2005-2015 new investors got more divided license blocks and performed more seismic programs within their blocks and very limited drilling
- In 2017 Schlumberger acquired one production and two exploration blocks in Georgia, which can develop service infrastructure in country
- Within tens of investors through the last 20 years period only two of them had background of being E&P companies
Currently eight companies own different the oil and gas licenses according to the map below:
Georgia Oil & Gas Industry Highlights:
Excellent potential for Conventional Oil and Gas and Shale Oil and Shale Gas resource plays
- Well known geology (similar hydrocarbon plays as in North Caucasus and Caspian Region)
- Under-explored and under-developed with no discoveries since 1974
- Very limited use of modern technologies (3D seismic, directional drilling, horizontal drilling and stimulation)
- 80’s peak prod= 70,000 BOPD from the nearby Samgori field (Middle Eocene reservoir),
Cumulative production > 200 MMBBls of oil (and still producing)
- High potential and proven conventional plays in multiple horizons (areal and vertical opportunity)
- Unconventional potential in world class regional source rocks
- Significant volume of compiled data
- Direct analogues of the nearby Samgori (<30km) structure that has produced ~200MMbbls to date.
Positive petroleum legislation & regulations
- Stable, simple, transparent & investor friendly Production Sharing Contracts and open fiscal markets
- Taxes and royalties on oil and gas sales paid by the State from its share of production
- Oil and gas infrastructure with capacity to move oil or gas to international markets (Brent price at the coast)
- Key permits in Georgia already acquired and significant field works and studies already completed
- Farm-ins and acquisitions of neighboring blocks available at very reasonable terms
In 2017 Schlumberger acquired 100% WI of license blocks in Georgia:
- Expected to bring a significant upgrade in Georgian service infrastructure
PSA Commercial terms: