Georgian Technical University. Brief Overview Of The Georgian Oil And Gas Industry

Abstract

This article provides a historical and contemporary overview of the oil and gas industry in Georgia, examining its development, production trends, refining infrastructure, regulatory framework, and strategic role in international energy transportation. The study traces the evolution of petroleum exploration and extraction through three major historical periods, highlighting the expansion of oil production following the discovery of significant fields in 1974. Georgian oil production increased from 260,000 tons in 1975 to approximately 3.3 million tons annually in the early 1980s, before declining due to resource limitations, production challenges, and political instability. The article also examines the development of oil refining facilities, including the historical Batumi refinery and more recent investments in refining capacity. Particular attention is given to the institutional and legal framework governing petroleum activities, notably the role of the State Agency of Oil and Gas and the Georgian Oil and Gas Corporation. Furthermore, the study highlights Georgia's strategic geographical position as an energy transit corridor connecting the Caspian region with European and international markets through major oil and gas pipelines. The article emphasizes the importance of infrastructure development, international cooperation, and investment in strengthening Georgia's petroleum sector and its contribution to regional energy transportation.