Georgian PM unveils $700mln oil refinery project on Black Sea cost as “largest” private investment initiative

Georgian Prime Minister Irakli Kobakhidze on Tuesday unveiled the Kulevi oil refinery project on the Black Sea coast of the country, calling it the “largest private investment initiative in the history of independent Georgia”, with an investment volume totaling $700 million.

Kobakhidze announced the Tbilisi-based company Black Sea Petroleum would construct the country’s first oil refinery, with the initial phase of construction estimated at $110 million.

He said the refinery aimed to produce “high-quality” petroleum products that meet international standards with “cutting-edge technology” and “modern equipment”.

Once operational in March next year, the Kulevi oil refinery is anticipated to process 1.2 million tonnes of crude oil annually, with plans to gradually scale up production to four million tonnes. By the end of 2028, the facility will fully implement advanced processing capabilities for crude oil and petroleum products”, Kobakhidze added.

The Prime Minister emphasised the significance of the refinery not only for local consumption but also for export opportunities.

Black Sea Petroleum will be positioned to supply various types of petroleum products to local markets and export them to Europe and beyond,” he added.

Kobakhidze also highlighted a “significant positive impact” of the project on the country’s economic growth.

The country’s export potential will increase substantially, improving the foreign trade balance. This, in turn, will contribute to the sustainability and stability of the national currency and promote the overall stable development of our economy”, he said.

The full-cycle operation of the refinery will help reduce imports and foster a “more competitive” market, he said, adding the development was a “key national priority”.

The refinery will create high-paying jobs that meet international standards, employing 500 people in the first phase. It is crucial that the majority of these jobs will go to local residents”, Kobakhidze said.

The Prime Minister noted the project was offering opportunities to develop “new professions, gain knowledge, and acquire work experience” for young people in the country, highlighting its “public and state importance” alongside its economic benefits.

Kobakhidze also said the refinery would play an “important” role in enhancing the country’s energy security and independence.

He thanked Black Sea Petroleum, its management, and professionals involved in implementing the project.