Outrider Management LLC, a California-based investment firm, has asked Georgia Prime Minister Giorgi Gakharia to award it the license to produce oil and gas from Block 12 in the country's Karu Basin. The award would allow Georgia to derive more value from the field and enable Outrider to recover its investment in the troubled company that currently holds the license.
Outrider is the largest stakeholder in the existing licensee, Frontera Resources Corporation, and has sought Frontera's liquidation over the firm's unpaid debts, which now total over $35 million in principal and interest. Outrider told the Prime Minister it faces "a potential total loss" of its investment after nearly a decade of working with Frontera.
Georgia sued Frontera for breach of contract and won a favorable ruling from an international arbitration court in the Netherlands in April. Georgia held off reclaiming its drilling rights and ending its contract with Frontera after objections were raised by several American political leaders, who suggested the arbitration ruling held "geopolitical implications" for relations with the U.S., from which it derives aid.
Outrider's principal, Stephen Hope, said Georgia can resolve Frontera's debt problem and remove any doubts about the country's continuing goodwill toward the U.S. by awarding a new license to Outrider, a responsible American company with expertise in emerging market investments and a history in oil and gas.
"Outrider has long been the victim of Frontera's business practices and prays that Outrider will have an opportunity to participate in efforts to realize value from the field; or, at bottom, requests that any entity awarded with the license assume responsibility for Outrider's unpaid note," Hope wrote to Prime Minister Gakharia last month. "Outrider and its United States investors believe that it would be a valuable partner in any future licensing."
Hope said his company wants to be constructive and helpful by stabilizing the existing production and recruiting a skilled operator that can explore and assess the field, which contains an estimated 700 million barrels of oil in a challenging structure. Hope said he looked forward to discussions with the Georgian government to seek a resolution that works for both sides.
SOURCE Outrider Management LLC
See all the news
All
როგორ მოხვდა 17 წლის ანასტასია ლელაძე ჰარვარდში? - ანასტასია ლელაძე ქალების ნარატივში
"Literally the whole village was waiting for the first harvest of strawberry" - Kvitsiani family from Svaneti
Putin imposes visa restrictions on citizens from 'unfriendly' countries
BMG-ს მედია რუბრიკა: #პროფესიონალი - გიორგი მიქაია
Business Leaders Council by USAID and Georgian Business
ბინების ქირის ფასი 50%-მდე გაიზარდა
DriveWealth-G&T Cooperation
"Today we are all Ukrainians"- Zurab Pololikashvili
Tourism is the main bridge for building understanding - ZURAB POLOLIKASHVILI
FAQ’s and Analysis on Lari & FDI - Interview with Fady Asly
მინერალური და მტკნარი წყლის ფასები ქართულ ბაზარზე
China continues to push competitors out of the global walnut market
Moscow to Host First Meeting of Turkish & Armenian Special Envoys on Jan 14
Scientists Discover New Part of the Human Body
Turkey's Exports Soar by 33.7% to $21.5B in November
რა ხდება საკაბელო პროდუქციის ბაზარზე?
საქმის კურსი - 16.12.2021 - ღამის კოლაჟი
საქმის კურსი - 16.12.2021_17:40 / გადაცემა სრულად
#COVID19-ის ახალი შტამი: #ომიკრონი - რა სიმპტომები აქვს “ომიკრონს”?
#ForbesTalks: Interview with Oleg Ossinovski / ინტერვიუ ოლეგ ოსინოვსკისთან