16.Oct .2020 11:45

Frontera: oil extraction license will be valid for another 7 years

Frontera: oil extraction license will be valid for another 7 years
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Zaza Mamulaishvili, General Director of Frontera, told BMG that the company will have a license on oil extraction for another 7 years at the area of the 12th license block. It should be noted, that works are currently underway there.

For reference, The Hague Arbitration Court took decision on the dispute between Frontera and Georgian Oil and Gas Corporation in April 2020. However, dispute continued for several years for the breach of license requirements by Frontera.

The arbitral tribunal upheld Georgia's appeal, ordering the transfer of Frontera's license territory back to the state.

According to Zaza Mamulashvili, Frontera has already returned about 99% of this territory to the state by the decision of the arbitration court. Mamulaishvili notes, that the state can announce a new tender and bring a new licensee at that area. However, the license for attraction natural gas at the remained 1 % area is still valid.

“We have a license for the area, where oil and gas is being extracted, while the remained area is returned to the government. They must carry out exploration works and make investments. We do not own that license “, Zaza Mamulaishvili told BMG.

As it is announced, Frontera is being restructured and companies based in the Cayman Islands will be liquidated.
According to Zaza Mamulaishvili, the change will not concern to LLC Frontera Eastern Georgia, which will continue operating.

According to the Registration of a Business, Frontera Resources Georgia Corporation is 50% stake holder of LLC Frontera Eastern Georgia, while 50% is owned by Georgian Oil and Gas Corporation.