Another Article - seems a mix of stuff already out there17 Oct 2020 08:43
Pt.1
The case of the energy company "Frontera", which has been engaged in exploration works in Georgia for many years, has gone so far that it will no longer be established in offshore zones. The Cayman Business Registration Authority says that under the rules in force in the country, several hundred companies that do not conduct business will be deregistered and considered liquidated. This list includes the energy company "Frontera" and other legal entities affiliated with it. Among them is FRONTERA RESOURCES GEORGIA, which in the past used to extract oil from the twelfth license block of Georgia.
After a big confrontation with the Georgian government, changes started in "Frontera". Restructuring is currently underway there and their stakeholders are changing. FRONTERA RESOURCES GEORGIA can no longer be a legal entity of the Cayman Islands.
The tribunal of the International Court of Arbitration in The Hague ruled in April 2020 on the ongoing dispute between Frontera, the Oil and Gas Agency and the Oil and Gas Corporation. The dispute has been going on in the court for several years, and within it the state "Frontera" was arguing for the violation of the license requirements.
The Arbitration Court upheld Georgia's appeal, which resulted in the transfer of Frontera's license territory to the state, although the so-called oil company has been stubborn for a long time and has continued to clash with the authorities.
How do they assess the fact that Frontera stays outside the offshore zone? According to Zaza Mamulashvili, General Director of the Energy Company, the abolition of the legal entities owned by Frontera in the Cayman Islands is part of the restructuring, and the company Frontera Eastern Georgia, founded by them, continues its activities in Georgia.
As Mamulaishvili told Business Media, he did not name specific details of the restructuring, but said the changes would increase the share of Outrider Managmenet in the company. A few days ago, this company applied to the Government of Georgia and requested the transfer of the oil extraction permit to the twelfth license block.
According to the company, there is a possibility of extracting up to 700 million barrels of oil in Georgia, but it has a rather complicated distribution structure. In addition, Outrider Management announces the study of the exact volume of supplies in case of obtaining a license and the introduction of an experienced operator in the country to perform the extraction work.
"California Investment Company has already applied to the Prime Minister of Georgia Giorgi Gakharia to give the company the right to extract oil and natural gas from the twelfth license block. "As a result, Georgia will benefit from these resources, and the company itself will be able to repay the investment made in the company currently holding the license," - said in a statement to Outrider Management.
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