The Georgian Oil and Gas Corporation (GOGC) is still awaiting payment from Frontera despite the long-running dispute between the parties having been resolved. According to GOGC’s 2025 financial report, the corporation is entitled to claim around GEL 15.4 million from Frontera, although the likelihood of receiving the money remains uncertain as the US energy company entered bankruptcy/liquidation proceedings after losing the arbitration case.
The dispute began in 2018, when GOGC and the State Agency of Oil and Gas filed international arbitration proceedings against Frontera Resources Georgia Corporation. The Georgian side argued that Frontera had seriously breached its production-sharing agreement by refusing to return unused parts of its licensed area in Kakheti, with the request covering about 99% of the territory. Frontera initially filed a counterclaim seeking $3.5 billion in damages, but withdrew it in 2019.
The arbitration ruling was issued on April 17, 2020, largely upholding Georgia’s position and finding that Frontera had breached a key contractual obligation. The company was ordered to pay GOGC certain amounts, including fees GOGC had paid on Frontera’s behalf for the use of natural resources, accrued interest and legal costs. However, Frontera’s financial position deteriorated, and liquidation proceedings began in late 2020.
The parties subsequently reached several agreements, including a 2022 deal under which other Frontera-related companies agreed to cover amounts awarded in the arbitration ruling and compensate Georgia for certain losses related to oil distribution. The final payment deadline was August 30, 2024, but the funds were not paid. GOGC says it still has a claim for GEL 15.399 million, but the likelihood of recovery remains “very uncertain.” The amount has therefore not been recognized as income in its 2024 or 2025 financial statements. GOGC continues operations in Kakheti’s License Block XII in accordance with Georgian legislation and the State Agency’s instructions.
