Oil show
30 June, 2011
Oil show

Georgia is an granted site for discovering potential oil and gas deposits and the country could enjoy commercial benefits from the hidden treasure if Georgian government paid due attention to exploration works, the sector pundits say. 

The recent oil show near Poti, Georgian Black Sea outlet, triggered a series of talks on confirmed oil deposit discovery in the Georgian media early this June. The Russian-based ScanEx Research & Development Center within the framework of the Black Sea oil pollution monitoring program

detected natural oil sources near Poti. However, some Georgian media sources reported the news that scientists “discovered” an oil deposit near Poti. Georgian government seems indifferent to the potential treasure.

Zurab Mgeladze, Head of Oil Department at the Technical University of Georgia, and also an Academician of several academies of natural sciences including Georgian, Russian and international ones, finds the alleged oil deposit discovery futile. However, he accentuates that Georgia is really acknowledged [by number of scientific researches implemented starting 30s of the past century by both Soviet and foreign pundits] as potential site for oil and gas fields.

“I was senior advisor to the American-based Anadarko [that aimed to explore oil deposit in the Black Sea territory of Georgia] in the field of geologic exploration in late 90s and based on a comprehensive regional research, we spotted four big territories/potential oil deposits in the Black Sea where we found oil seeps. This ScanEx oil seep coincides with oil seeps we mapped in 2000 but we did not trumpet it was a deposit discovery because it was not. Oil seeps and even a source where the oil originates are not identified as deposits in geology,” Mgeladze explained to Georgian Journal. “It is a geological process, oil never accumulates and makes a deposit in the place where it takes its source, it migrates through the earth layers till some firm formation [with no pores] “catches” it and oil starts accumulating into deposit. And the oil seeps on the surface of water or earth just bespeaks of its migration process and that somewhere near this oil show must be either a source or a deposit. The Caspian Sea is full of such oil seeps but nobody pays attention to it, it is not commercially profitable to gather them.”

Mgeladze presumes that the recent agitation over oil deposit discovery near Poti is a translation mistake backed by comments of non-professionals for the Russian ScanEx news quite clearly indicates on “source” not “deposit” existence.

However that never means that Georgia has no carbon resource potential. Even prior to research of Anadarko, that quit exploration works finally because it was too expensive and risky [oil exploration works cost more than USD 100 million in the sea bed while on-land exploration takes just USD 6-8 million] Georgia was acknowledged to be a carbon site due to a simple thing that the entire country including the Black Sea bed stands on oil/gas inclusive geological area. The east Georgia belongs to big geological oil/gas province incorporating Azerbaijan, Caspian Sea and Turkmenistan. While the west Georgia belongs to smaller Eastern Black Sea Oil and Gas Circuit.

A big Samgori-Patardzeuli deposit was discovered in 1974 adjacent to Tbilisi pumping 3.3 million tons of oil per year in 1981-83 however due to incorrect exploitation terms it was closed. Only 54 thousand tons of oil and 16 million cubic meters of gas are extracted from few smaller deposits in Georgia today. A group of experts headed by Mgeladze believes new bigger deposits are in store and exploration works must go ahead. But Georgian government disappointed by the fact that no new deposit was discovered for more than a decade sticks to a nonchalant policy in oil and gas exploration sector. And only thanks to fund of Catholicos-Patriarch of Georgian Orthodox Church Mgeladze’s team carries on exploration works on insignificant funding.

The oil and gas existence was proved by picture taken by Russian specialist from cosmos in 1993 and backed by the Anadarko research. Based on it the estimated prognosis available in Georgia equals 2.4 billion tons of oil and 180 billion cubic meter of gas. About 1.2 billion tons of oil is commercially available out of the figure. Discovery of these resources might be a huge relief to Georgia fully dependent on imported oil and gas nowadays and experts believe deposits discovery is quite realistic thanks to state-of-the-art technologies but the cost is absolutely unaffordable to a small poor country like Georgia. The exploration works are complicated by difficult geological formation of Georgian soil and depth of the Black Sea that reasoned soviet specialists to explore simpler potential sites abundant throughout soviet empire.  But exploration of carbon resources is crucial to Georgia today and experts believe exploration works will end up by success ultimately and pay off all costs if Georgian government undertakes proper management to attracts investors and implement strong control over their operation. Exploration works brought no success starting mid-90s of the past century for the attracted investors were rather oriented on quick profit of the discovered deposits rather than exploration works and most probably did not comply with Georgian law  obliging investors to apply the most effective technologies. The loose state control allowed it to happen.

“Exploration works in Siberia and Prevolzhe were on for 50 and 35 years respectively. The latest international studies show that carbon deposits may be available even in the regions that were not acknowledged as potential sites before.  We can achieve results under proper management and state control like the best world experience. Oil field must be under the President’s control. But Georgia only weakened control, removed the Saknavtobi, the oil sector controlling body from the president’s control and put it into the energy ministry. Saknavtobi is incorporated within Gas and Oil Corporation that is responsible for pipeline system management in fact and has no idea of exploration works,” he said.

Mgeladze assesses government’s indifference equal to betrayal that deprives the country of development perspectives.

Other Stories
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
Biblusi opens first shop for tourists - Georgian
The largest book shop in Georgia Biblusi opens the first shop specially designated to the needs and interests of tourists and named it Georgian.
Georgia improves by five ranks in the Prosperity Index
In the overall Prosperity Index rankings, Georgia has climbed by 5 positions from 85 to 80 when compared to last year. As such, Georgia is the best performing country in the CIS zone.
The future is bright for electric cars in Georgia
The numerous hybrid cars in the streets of Tbilisi cannot be overlooked. Entrepreneur Sulkhan Gvalia calls them “pagers”, referring to the predecessor of mobile phones.
Georgia’s fight against the big tiny enemy – Asian Parosana
It’s a tiny creature, but the harm it did to the Georgian agriculture sector was and still is immense.
New cable route: from Kobi to Gudauri in 15 minutes
On the 15th of December, cable transport is scheduled to be opened connecting Kobi and Gudauri.
Tourist boom in Gudauri – majority of hotels are booked by foreigners
Gudauri is among the most popular winter resorts in Georgia.
Medical tourism increases in Georgia
In the last 9 months, Georgia was visited by 19 500 foreigners for medical and recovery purposes.
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Bitcoin.com Head Speaker List featuring Circle, DEX.top and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.

Exchange Rates
GEL Exchange Rate
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
January 2019
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31