An American investor is set to enter Georgia’s oil and gas exploration sector, with plans to invest $70 million in the exploration and development of hydrocarbon resources, according to the Georgian Ministry of Economy.

The company, Aspect Georgia, will join a consortium tasked with exploring the XIQ licence block in the east of the country. The project was previously led by Georgia Oil and Gas Limited, the State Agency of Oil and Gas of Georgia, and GOG SLADS Limited. A production-sharing agreement was signed between the parties in December 2021 following an international tender, News.Az reports, citing Georgian media.

Under the revised agreement, Georgian authorities expect the entry of a new partner to accelerate geological exploration work and improve the prospects of a commercial discovery.

Aspect Georgia is registered in the US state of Colorado and is a subsidiary of Aspect Holding, an American oil and gas company. The parent firm has experience in exploration and production across complex geological formations and operates in the United States, Central Europe, Latin America, and the Middle East.

Last week, the Georgian Ministry of Economy also said there had been growing interest in the country’s energy sector from Chinese companies. It stated that exploration and production opportunities had been discussed with China ZhenHua Oil, a subsidiary of the Chinese state-owned defence conglomerate Norinco.

News.Az