GEORGIAN INTERNATIONAL OIL & GAS AND POWER INDUSTRY EXHIBITION AND CONFERENCE.
Location: Sheraton Metechi Palace Hotel, Tbilisi, Republic of Georgia.
Dates: 23 – 27 March 2015
Georgia is situated on the Black Sea at the junction of Eastern Europe and Asia. Georgia borders Russia to the North, Turkey and Armenia to the south-west, Azerbaijan to the south-east, and the Black Sea to the West. Georgia’s population was estimated to be around 5.4 million in 1993. In the past Georgia’s favourable climate conditions with prosperous agriculture and tourism sectors enabled the population to enjoy a better standard of living and education.
ECONOMIC PROSPECTUS: PIPELINES, OIL & GAS TRANSIT, OIL & GAS RESOURCES AND POWER INDUSTRY.
Under the International Monetary Fund’s (IMF) close supervision, Georgia has adopted a tight monetary policy and is making good progress with economic reforms.
Notable commercial interest has also been generated in Georgia by the Azerbaijan International Operating Company’s (AIOC) taking some of its “early oil” west through Georgia to Supsa, near the Black Sea port of Poti.The Construction of the 225-km-long early oil pipeline (the so-called western route) and the oil terminal in Supsa is completed. The cost of the project was US$400m. The next challenge for Georgia is the construction of a new oil refinery at Supsa, and also of the main export pipeline (MEP) from Baku to Ceyhan in Turkey via Tbilisi. The route is agreed by the major participating countries. The estimated cost of construction is from $2.4bn-$3bn. The interested parties are hoping to start construction in the first quarter of 2001. An existing 232km oil pipeline between khashuri and the coast at Batumi is also to be renovated to serve Chevron’s needs. Total cost is estimated at $70 million. Conoco (US) is planning to invest $250 million in a project to supply liquefied gas from Caspian Region through Georgia to Turkey and other states on the Black Sea.
The construction of the Khodorsky Hydroelectric Plant in north-Georgia will be entirely financed by China’s state-owned Sichuan Electric. The cost of the project is estimated at US$27m. A tender on rehabilitation of Georgia’s largest hydroelectric plant “The Inguri” is also underway.
Georgia has of its own oil and gas reserves both offshore and onshore and the hydro-power potential to be a regional exporter of energy. Total Georgian oil reserves are estimated at 580 million tonnes, including 200 million tonnes in offshore fields. The development of Georgia’s indigenous energy resources and production is vital. The IFI’s are working closely with Georgia in the energy sector to rehabilitate existing capabilities (thermal and hydro) and to restructure the national energy concern “Sakenenergo”. Five major western Oil & Gas extraction companies are working alongside the Georgians to achieve this aim. Two British companies are taking lead in developing and extracting local oil and gas in Georgia: JKX Oil & Gas and Ramco Energy. Air BP, which is a branch company of BP Oil, signed a contract that envisages the installation of a new aircraft re-fuelling facility at Tbilisi international airport. Frontera Resources Corporation has invested around $30 million in the past two years to explore six deposits, the first of which, the Taribani field came on stream in March 2000. Drilling of the next three wells at Taribani is likely to require additional investment of US$70-80 million. Frontera also plans to start drilling at the neighbouring Mirzaani and patara Shiraki fields.
Lasmo and Shell Capital (UK) are also involved in developing Taribani field. They have already invested 7$ million and planning to invest another 20$ miillion more.
Anadarko petroleum plans to spend 1$-$2 million on seismic in the Georgian waters of the Black sea after it farmed-in to the 8,900 sq km West Georgian Offshore PSC. The Greek State Oil Company has also recently held negotiations with the Georgian government to develop the Norio site near Tbilisi. The EU plans to assist Georgia in the formation and development of its gas sector and supports its participation in regional transportation and energy projects.
MAJOR NEW NATURAL GAS FIELDS:
Until recently Georgia was almost entirely dependent on imports of gas. However, Georgia is now producing its own gas.Since December 1999 Georgia UK Joint venture (GBOC) has been supplying Tbilsresi with natural gas extracted from the Ninotsminda deposit at a site near Tbilisi. Seismic data has indicated that the field contains reserves of at least 30 billion cubic meters of gas, and forecasts for the neighbouring Manavi field are even higher, at 40 billion cubic meters. Further exploration is under way at the Nazvrevi field, which is also expected to contain large gas reserves.
WHY INVEST IN GEORGIA?
The Georgian Government has created a real favourable atmosphere to attract foreign investments to the republic. In September the profit tax for foreign contractors in the oil & gas sectors was cut from 10% to 4%. Economic progress, which has become evident since Georgia’s commitment to reform policies, heavily supported by the IMF and the World Bank has brought huge revival to the industrial sector. At the end of 1996 official data showed a GDP increase of 11% to US$3.5billion. The same figure is quoted at the end of 1997- 11.1% to US$4.9 billion.
Foreign companies and banks have become increasingly active in developing Georgian transport infrastructure particularly to upgrade the Batumi port. Three oil-loading berths need overhauls, and the oil-loading terminal at the Batumi refinery will also be modernised.
GIOC plans to begin construction of a modern oil refinery at Supsa by late 2000 and first production line will be completed within 18 months. The entire project is expected to cost $300 million. Japan’s Itochu is the main contractor. The first line will have the capacity to refine 3 million tonnes of crude oil each year.
Georgia is situated along the shortest commodity, electrical, oil and gas trade and transit corridor to the West from Azerbaijan, Armenia and the Central Asian republics and also forms a north-south bridge between Russia & Turkey. Georgia is a country with huge opportunities. The Georgia International Oil & Gas Show will be the first exhibition of its kind; exclusively a showcase for international, national & CIS products and services. It will enable you to introduce new and exciting product lines to brand new clients and also establish long-tern trade relationships. As manufacturers and suppliers of oil & gas equipment, products and services, it will give you a unique opportunity to become part of one of the greatest economic & industrial transformations of the 21st century.
The Show will satisfy the needs of the top-end investors, manufacturers and dealers. The exhibition is fully supported by the Ministry of Fuel & Energy of Georgia. An extensive visitor promotion campaign will target key decision-makers from all over the country and Transcaucasia.
Who should exhibit?
All companies involved in upstream or downstream activities, both onshore and offshore. These broad categories include:
Oil & gas companies
Oil & Gas exploration technologies and equipment
Oil refinery technology and equipment
Construction and rehabilitation of oil & gas pipelines
Construction of oil terminals
Research & Staff training
All kinds of software mfg & suppliers
Turnkey computer solutions
Exploration & material settling
Development technology & instruments:
enhance oil recovery
development of thick oil
Offshore oil & gas development
advanced control & optimised
control emulating technology
lubricating oil/lubricating grease
Organic raw materials
Catalyst, solvent, promoter
Petroleum, petrochemical products & fine chemistry
Industrial waste control/effluent treatment
Domestic waste control/sewage treatment
Power generation, distribution & transmission:
International power generation companies
Power generation equipment & machinery
Electricity distribution & transmission systems
Pipes, valves and pumps
Industrial power (accumulators and others)