RE: Posted by Symore_Bottoms on ii15 Nov 2019 14:10
The company received the revenues of approximately $1.04 million in 2004 from
the Georgian crude oil sales. Considering the terms of the PSA (the company retains
the entire oil profits until the total costs and expenses are recovered, and the
company is exempt from any tax liability), and the stated investment volume of $70
million, the company will not be making payments to the state for a forseeable
future, unless the production of oil raises sharply. The company does not publish
information on the volume of the extracted oil. The monitoring activities of the
company’s operation in Georgia should focus on the size of the actual investement
in the country, and the volume of the extracted oil from each field. The PSAs of the
company should be made publicly available, as well as the documents related to the
tender process that granted the company such adventegious terms and conditions
for extracting Georgian gas and oil.