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Posted by Freescot on the 3rd Feb :-

Part 3
The recent developments in the US have shown that the American company has financial problems. On December 17, Frontera fired 84 employees in Dedoplistskaro. Employees themselves say the decision was unfair because they had not been paid for 11 months, so they protested and did not go to work.

According to them, because of this the company resorted to punitive measures and dismissed them.

Whoever seeks finds it

Still, what has Frontera been looking for in Georgia for 23 years and what has it found? Oil exploration and extraction works are carried out on licensed areas (so-called blocks) on the territory of Georgia. Search and extraction works are carried out by international companies selected by international tenders, which have equity distribution agreements with the state. The Georgian Oil and Gas Corporation, as a national oil company, partners with operating companies in planning operations and overseeing and controlling operations.

At present, 6 investors are involved in oil production in Georgia and one of them is Frontera Resources Georgia.

Average annual oil production in Georgia in the last 10 years is 43.6 thousand tons. As you know, Georgia is fully dependent on imported petroleum products and annual consumption exceeds 1 million tons. Consequently, the volume of locally extracted oil looks depleted relative to consumption. Although this does not seem to detract from the interest of foreign companies to obtain oil in Georgia, some are more or less productive, and some are practically year-to-date in research (?!)

Source: Weekly Palette

Posted by Freescot on the 3rd Feb :-

Part 2

Another noisy announcement this time about the discovery of gas reserves in Georgia by Frontera in 2014. Steven Nicandros, chief executive of the American company, said they had discovered a 42 billion cubic meter gas field, which would be a precursor to Georgia's future energy independence. As you know, Georgia still consumes almost 100% of its imported gas today, and local gas production is very low (less than 0.5% of total annual consumption). Interestingly, the Georgian government was in fact leaving the Frontera's "findings" without reaction. However, they had to pay attention to their sensational findings as Frontera calculated that Georgia had almost three times as many gas resources. The only one to comment on this was the Gas and Oil Corporation, which claimed that Frontera had not provided any technical justification for such colossal supplies.

Another interesting detail that the archive has kept in view of the recent past. Bidzina Ivanishvili also met with the leadership of Frontera during the premiership. The meeting was held between Ivanishvili and the Executive Director of Frontera Georgia, Steven Nicandros in the government administration. Naturally, the media did not attend the meeting, but Richard Norland, the then US ambassador to Georgia, attended the conversation. It is difficult to identify what the parties discussed behind closed doors, and it was officially reported that the parties discussed prospects for further deepening existing cooperation. Today, the company is blamed for dishonesty by government officials and US congressmen for pursuing narrow, mercantile interests.

The dispute

Relations between the American Fronta and the Georgian authorities have been strained for the past few years. In the summer of 2019, the Georgian Oil and Gas Corporation issued an audit report of the previous year, which revealed that the latter had filed a lawsuit against Frontera in arbitration. The Georgian Oil and Gas Corporation and the State Oil and Gas Agency of Georgia accuse Frontera of violating Georgia's financial obligations. More specifically, the case of the so-called agreement of the company with the Georgian side. It deals with violations of income-sharing clauses. Another contentious issue in the dispute was the debt for the use of natural minerals, which the company was reluctant to pay.

In September 2018, Frontera initiated a retroactive arbitration dispute and sought reimbursement of unacceptable profits from the Georgian side. The company is seeking compensation for "unacceptable profits" for 2012-2027, valued at $ 3.5 billion.

Posted by Freescot on the 3rd Feb :-

Nice one bugsy!
Part 1

Frontera "The license area in Georgia is 5060 sq. Km and covers Dedoplistskaro, Signagi, Sagarejo, Gurjaani and Marneuli districts"

In recent critical messages from the United States, the name of the company Frontera has twice been voiced. First Republican Congressman Markuin Malin wrote a letter to George Gakharia, speaking of a decline in FDI in Georgia, citing, for example, the oil and gas company Frontera, one of the victims of the Georgian government's harassment. Later, while addressing the US House of Representatives, Congressman Pete Olson criticized Bidzina Ivanishvili and also cited the Frontera company in Texas, which has a dispute with the Georgian Oil and Gas Corporation and is unable to function. Such a "narrow business" support of the US congressional leadership was unacceptable to the ruling team, and Frontera was described as a dishonest company. And yet, what is the Frontera company that is being criticized in Georgia and trying to protect it from America.

How does President Shevardnadze enter a pot full of "Georgian" oil?

American oil company Frontera Resources was founded in 1996 and has its headquarters in the United States. The company has been in Georgia since 1997 and, as a business, has been engaged in exploration and exploration for oil and gas in the east of Georgia. It was founded by Frontera Western Georgia LLC, 50% of which is owned by the Georgian Oil and Gas Corporation. That is, it turns out that half of this company is state-owned, as JSC Partnership Fund owns 100% of the shares of the Gas and Oil Corporation, which, in turn, are state-owned, while the Ministry of Energy is authorized to manage the gas and oil corporation. Frontera's licensing area in Georgia is 5060 sq. Km and covers Dedoplistskaro, Signagi, Sagarejo, Gurjaani and Marneuli districts. Specialists recall that the company's first oil extraction from the well coincided with April 1, which they estimated was quite symbolic, as the company's noisy statements about the supplies it discovered did not match the actual volume of oil or gas they extracted.
Ex-President Eduard Shevardnadze attended the opening of the oil well in the Tariban Valley and tasted "Georgian" oil from the flask to mark the discovery of oil. Shevardnadze said foreign specialists had found a large supply of oil in Shirak, which would have been good for the economy, with Dedoplistskaro expecting jobs and free oil products. It was immediately suggested that this might actually be an attempt to promote good news by encouraging the stock market to rise in price. It seems not unfounded, as the fate of the Kuwaitis is still being built in Dedoplistskaro.

Another "discovery" of Frontera

Posted by Oopsi on the 3rd Feb :-

Top 5 Priorities for US - Georgian Relationship in 2020
Heritage Foundation: Top 5 Priorities for US - Georgian Relationship in 2020

The American research and educational organization Heritage Foundation has released a report, titled 'Five Top Priorities in US-Georgia Relations in 2020'.
The author of the work is Alexey Mrachek, an assistant researcher on issues related to Russia and Eurasia.
The report notes that 2020 will be an important year in US-Georgian relations. Parliamentary elections will be held in Georgia in October 2020 and Mrachek points out that given the active protests in 2019, these elections will most likely be noisy and tense.
"Other matters for 2020 include the fate of the Anaklia port project, making a US–Georgia free trade agreement (FTA), and Georgia’s NATO aspirations. In order to advance the US–Georgian relationship in 2020, the US should support free and fair parliamentary elections, push for a free trade agreement with Georgia, support Georgia’s NATO aspirations, strengthen the bilateral defense relationship, and prod Georgia to find a new investor for the Anaklia port project," the author notes.
He then points out that Georgia is of great importance to the United States. First of all, the country has proven to be a reliable ally in Afghanistan and Iraq, with thousands of Georgian fighters having been deployed in support of both missions over the years.
The author also highlights Georgia's strategically important location.
“Georgia’s location at the crossroads of Europe and Asia is extremely strategic. Running through Georgia are key oil and gas pipelines and rail lines, which are important to European security. These pipelines include the Baku–Tbilisi–Ceyhan pipeline, the Baku–Supsa pipeline, and the coming Southern Gas Corridor transit, and the main rail line running through Georgia is the Baku–Tbilisi–Kars railway," the report reads.
Moreover, according to the report, in terms of democratization in the region, Georgia is an example in Eurasia.
"Georgia also serves as an example for the Eurasia region in terms of its democratization efforts. It has remained committed to the transatlantic community for nearly 20 years, and it strongly values territorial integrity," the author notes.
"Georgia will be faced with multiple challenges this year," Mrachek writes. "The fate of the October parliamentary elections and the Anaklia Port project are uncertain. However, they could be successful if the US encourages Georgia onto the right path. Fortunately, the bilateral defense relationship, Georgia’s future NATO membership, and the possibility of a US–Georgia free trade agreement are already making progress. The United States should continue strengthening its relationship with Georgia by making these five issues a top priority in 2020," the author of the report concludes.
Source: heritage.org
Read the full report here

Posted by Looed on the 3rd Feb :-

"Black Sea Mirage. Why Ukrainian gas production is not sexy for investors"
A very long - and negative Russian article so I have only cut and pasted the part that discusses FRR (its negative on everything, not just FRR)

"The second in line for Dolphin is another American company - Frontera Resources Corporation , which was the initiator of the competition. However, the tender committee noted earlier that this company has no real experience of work on the shelf and is in a difficult financial situation.

Frontera’s experience in Georgia suggests that the company is an intermediary and even a speculator who buys promising gas production licenses in certain countries without plans for real field development. It is quite possible that after the new competition, the winners will be able to carefully “pull up” Ukrnaftoburinnya Igor Kolomoisky.

The lack of participation in the competition of giants of the world market, such as Shell or Exxon, is not at all surprising. One of the main drawbacks of the Dolphin gas-bearing section is its close proximity to drilling rigs captured by Russia, the activity of the Russian Black Sea Fleet warships in this region, and the “unresolved” Ukrainian-Russian relations in the Black Sea. Of course, with such a set of risks, the project will be interested in speculators rather than real investors. The situation with the only promising gas field in Ukraine remains at the level of dismantling of “small-caliber” and dubious structures. And the prospects for the development of "Dolphin" remain extremely pessimistic."

and this is the final paragraph -

"In the foreseeable future, both on land and at sea, Ukraine has no prospects for a rapid upgrade of gas production through attracting investors. In this situation, it remains to rely only on domestic potential and financial resources. Current goals require the government to develop and adopt a strategic state program for the comprehensive development of the gas production industry . This is more promising than holding meaningless contests, choosing a valiant defender of energy security of Ukraine from among charlatans."

Source - https://vesti.ua/strana/chernomorskij-mirazh-pochemu-ukrainskaya-gazodobycha-dlya-investorov-ne-seksi

Posted by regdik on the 3rd Feb :-

There are a lot of thing w don’t know such as which of the FRR companies were responsible for paying the 84 workers/contractors. I suspect the company in liquidation is accountable and if that is the case the liquidators will see the workers as a creditor and therefore have to wait in line (after OMF and their fees). The liquidators are not administrators and would not be interested in continuing production as they would have to incur additional costs of setting up a group to run the company.
Additionally if you want to blacken (even more) the FRR brand and dry up any access to funds what better way than using the workers as a tool and as a back up use the distribution route as an issue to prevent oil reaching the refinery and therefore starve thee company of funds. Funds that they would need to fight all of the CC and arbitration case.
So we have the optic of a US company hurting the Georgian workers (Liquidated company is seen as a US company) therefore giving the GG a rallying point against the US and their interference in Georgian affairs.
SB mail highlights what the US Gov would already know about who is running the show In Georgia and I’m sure that the CIA would have done their due diligence on the situation regarding the complex FRR situation prior to high powered backing of senior politicians.
What we do know FRR are still defying logic as to not being dead and buried so hats off to the BoD.
They must have a strong case as the Georgian rhetoric is ramping up (as are the number of paid PR funded de-rampers on the BB – in my view now not all of the new posters are holding shorts but are paid to put out a party line on message/facebook boards).
Power and money corrupt and if you have an opportunity to take more they will. So if the a little O&G company have hit the jackpot you would want in (if not take all).
This is political and our future depends on how the US want to play this but I sure that a crumb will be thrown our way as a minimum.

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