Georgian Government Hopeful over Kumisi Gas Deposit
CanArgo Energy Corporation, an oil and gas exploration and production company operating in former Soviet states, said it has launched drilling at a well in Kumisi, adding that the volume of the gas deposit will become known in late June.
Georgian PM Zurab Nogaideli and Energy Minister Nika Gilauri visited the site near the capital Tbilisi on February 22.
?We want Georgia to have its own natural gas and to be less dependent on imports. This is the purpose of this project,? PM Nogaideli said.
?Seismic data shot by CanArgo indicates a potentially large structure may be present and test data from the discovery well indicates that reservoir productivity should be good,? CanArgo said in a press release.
In March 2006 CanArgo signed a take-or-pay agreement with the Georgian government on the supply of natural gas from the Kumisi well, in which the company has invested USD 4.5 million.
According to the agreement, CanArgo will supply gas based on a pricing formula under which gas is initially supplied at the contract price of USD 55 per thousand cubic meters and increased up to USD 80 per thousand cubic meters by the tenth contract year.
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