Georgia focused exploration and production company Block Energy has signed a memorandum of understanding (MoU) with the country’s Ministry of Economy and Sustainable Development covering government support of project development.
Block outlined in its statement that under the MoU, the government would extend its support and both would devise initiatives to assist in the development of Projects I, II, II and IV through data sharing, cooperation and the facilitation of meetings with national and regional large oil companies.
In particular, the MoU supports the concept of a long-term gas offtake agreement, which is an important part of delivering value associated with Project III and the 1 TCF contingent resource identified by Block’s subsurface team and supported by internal contingent resource reports, the company said in its statement.
The MoU also covers other areas of cooperation, including geothermal, carbon capture and storage, specifically the south dome project located within license XIB and hydrogen projects across Block’s license areas.
“This MoU reflects the strength of government support for the development of Block’s assets, which will be helped by the sharing of data and other cooperation initiatives. In particular, the MoU supports the concept of a long-term gas offtake agreement, which is an important part of delivering value associated with Project III and the 1 TCF contingent resource identified,” Paul Haywood, Block Energy CEO, said.
The company’s assets in Georgia include West Rustavi (100 percent working interest), Norio (100 percent), and Satshenisi (90 percent) as well as Block XIB and Block IX.
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