Australian Company Plans to Export Georgian Oil to China

TBILISI - Australian company Skyland Petroleum plans to export oil and gas from Georgia, Tajikistan and Russia to China in 2016.

According to the company’s Management Board Chairman, David Robinson, Skyland plans to buy the stocks of several mines in Russia and eastern Siberia that transfer energy resources through the ‘Eastern Siberia-Pacific Ocean’ and ‘Siberian Power’ pipelines to China's provinces.

In addition to Russia, Skyland Petroleum owns mine licenses in Tajikistan and Georgia. In particular, the company has acquired a 20 per cent stake in Georgia’s Block XIG.

The Skyland will work in collaboration with a local partner, Georgia Oil and Gas Limited (GOG) who are the majority owners and operators with 60 per cent interest in the field.

Georgian Oil and Gas Corporation, a state entity, also have a financed conversion of just over 20 per cent of the project.

Block XIG covers an area of 289 km2 and is located on the outskirts of the Georgian capital Tbilisi, close to the oil producing oil fields of Samgori, Teleti and west Rustavi.

Negotiations are underway and an agreement with the project’s investors is to be signed within a month, after which the exploration process in the area of operations will begin.

“The preliminary research suggests that it is a promising area, however, it is necessary to determine the reserves of energy sources and how its extraction is commercially substantiated with the existing technologies. Several sample wells have already been drilled, but there is a need to drill a few more. It’s impossible to make a 100 per cent prediction on the reserve capacity. We were able to reach a 90 per cent agreement with the partners. We’re likely to begin explorations in the summer if we have good results. That would make it possible to begin exporting next year,” Georgia Oil and Gas Limited Rep, Mikheil Dalakishvili, told Georgian media outlet Europe for Georgia.

Georgia Oil & Gas Limited (‘GOG’) has a net acreage position of 6,500 km2 with working interests in 9 Production Sharing Contracts (‘PSCs’) in Georgia.

Skyland Petroleum is an oil and gas exploration and production company established in January 2015 by British company Vazon Energy. It is actively seeking suitable projects in line with the company's mission of supplying the growing economies of East Asia, where the company's financial partners are based.

Sources: Europe for Georgia

By Ana Akhalaia

Edited by Nicholas Waller

22 April 2016 16:13