Georgia, CanArgo Agree on Gas Deal

The Georgian government agreed to purchase gas from the CanArgo Energy company, which explores, develops and produces oil and gas in Georgia.

An agreement was reached after a meeting between Georgian Prime Minister Zurab Nogaideli and CanArgo Chief Executive Officer David Robson.

CanArgo Energy reported on March 21 that progress on gas exploration and development has been hampered by the lack of certainty of payment in the gas market; however CanArgo has now received confirmation that the Georgian government will enter into contracts to purchase gas produced by CanArgo. 

“I am extremely pleased to have reached agreement with the Georgian government which allows us to move forward with our gas appraisal and exploration program. In my view the Prime Minister [Zurab Nogaideli] has adopted a very positive approach with regard to investment into the oil and gas sector in Georgia. The Georgian government’s support will allow us to invest in gas projects within our production sharing contracts. Whilst this is of considerable importance for CanArgo, it could also be important in meeting Georgia’s energy needs and reducing its dependence on imported gas,” David Robson, the CEO of CanArgo Energy said.

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