Page 43 - GEORptAug18

The Georgian government has in recent years sought to diversify its power mix by incorporating renewable and clean energy sources in order to contain its dependence on imports of Azerbaijani gas. In addition to their contributions to mitigating climate change, these projects will also help Tbilisi manage its current account deficit, which has been on the rise and which is financed largely with foreign borrowing.
9.2 Major corporate news 9.2.1 Oil & gas corporate news
Block Energy, an oil and gas exploration and production company focused on Georgia, will list on the London Stock Exchange’s alternative investment market AIM on June 11.
The listing follows the transformation of the company last year; until April 2017 it was a gold and copper-focused exploration company with interests in projects primarily in Ghana and Mauritania, under the name Goldcrest Resources plc. However, in April 2017, it switched its focus to oil and gas projects in particular in Georgia, and also changed its name.
Block is seeking admission to trading on AIM in conjunction with a placing and subscription to raise £5mn, which will be used for its West Rustavi SPA and Norio SPA projects, the company said in a June 4 statement.
Admission and commencement of dealings in the company’s ordinary shares on AIM will take place on June 11.
It owns three oil and gas assets in Georgia’s Kartli Basin (also known as the Kura Basin), between the Black Sea and the Caspian. The business is “operating in a proven yet relatively under-developed hydrocarbon region, specifically the Kura basin which at its peak produced ~70,000 bopd from one single field in Georgia,” the company said.
Its assets include the Norio PSA, in which Block has a 100% working interest, and the Satskhenisi PSA, wth a 90% working interest. They are already producing albeit on a small scale. The company also holds a 5% interest in the West Rustavi PSA via its subsidiary GNV, with an option to increase it to 75%.
9.2.2 Transport corporate news
Hong Kong-based Kerry Logistics Network Limited has agreed to develop Anaklia Port in Georgia and turn it into one of the largest ports in the Black Sea region, as well as Georgia’s first deep sea port. Ina pressstatement ,K errystressedAnaklia’sstrategiclocationalongthe shortest trade route between China and Europe in the Beijing-initiated One Belt, One Road (OBOR).
This was echoed by the CEO of Anaklia City JSC, Ketevan Bochorishvili, who said in a statement that: “The successful development of Anaklia projects is expected to unlock a potential market of over 150 million consumers and serve as a bridge between Asia and Europe.”
Kerry’s member company Globalink and Anaklia City JSC signed a memorandum of understanding on July 3 cooperate in the development of Anaklia Deep Sea Port and Special Economic Zone (SEZ), Kerry said in a press release. Both port and SEZ are due to be opened by the end of 2020.
43 GEORGIA Country Report August 2018 www.intellinews.com