Georgia signs deal with OMV Petrom for oil, gas extraction in Georgian Black Sea waters

Largest Eastern European oil company and one of the ten largest oil giants in Europe OMV Petrom and the State Agency of Oil and Gas of Georgia have today signed an agreement on extracting oil and gas on the shelf of Georgian Black Sea waters.

The entry of such a large and reputable, strong company into Georgia right now, when our economy is experiencing challenges caused by the Covid-19 pandemic, is a very important message to foreign investors in general. The main thing that led to the entry of this company in Georgia is our openness, the best business environment, political and macroeconomic stability, including the fact that our government is committed to the course of European reforms", said Georgian Economy Minister Natia Turnava.

As part of the agreement OMV Petrom will be allowed to carry out works in an offshore exploration block that covers a total area of 5,282 square kilometers for 25 years.

Turnava expressed hope that the first stage of the natural resources search process will yield a positive result.

Energy independence is very important for our country and one of the most important parts is the processing of our own resources, be it water, oil or gas", said Turnava.

OMV Petrom will carry out two and three dimensional seismic exploration works, and at the last stage drilling will begin. 

The cost of the drilling stage depends on the results of the studies.