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Oil and Gas Law

Are international oil companies protected in Georgia?

Yes, Georgia is a party to the Energy Charter Treaty and major pipelines operate under Host Government Agreements (HGAs) that offer strong protection against legislative changes and expropriation.

What permits are needed for an oil depot?

An oil storage facility needs a construction permit, an environmental decision (EIA), and strict compliance with fire safety and technical safety regulations for hazardous facilities.

Is gas supply tariff regulated?

For household consumers, gas tariffs are regulated by GNERC. For commercial consumers, the market is deregulated, and prices are determined by contracts between suppliers and buyers.

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Oil and Gas Law in Georgia encompasses a complex regulatory framework covering not just extraction but also transportation, processing, and distribution of subsoil resources. Georgia is a vital transit country for Caspian Sea energy resources (Baku-Tbilisi-Ceyhan, South Caucasus Pipeline), creating a unique legal environment blending international agreements with local legislation. Legal services in this field are necessary for investors involved in exploration and production operations, as well as companies engaged in infrastructure construction, maintenance, and petroleum product trading. The sector is strictly regulated by environmental, safety, and tax norms.

Oil and gas law experts represented on the Legal.ge platform offer comprehensive legal consultation and representation. Services include:

  • Transit and infrastructure project support: Resolving legal issues related to pipeline construction, operation, and land easements.
  • Regulatory Compliance: Ensuring company activities comply with regulations of the State Agency of Oil and Gas and GNERC, including licensing and reporting.
  • Drafting commercial contracts: Drafting agreements for the purchase, transportation, storage, and terminal handling of petroleum products, considering international standards (e.g., INCOTERMS).
  • Managing environmental liability: Assessing and defending legal risks related to oil spills or other environmental incidents before regulatory bodies.
  • Dispute resolution: Handling arbitration and court disputes related to PSA contracts, commercial disputes, or tax issues.

Oil and gas law services are relevant in the following scenarios:

  • An international consortium plans to lay a new pipeline and needs analysis of the "Host Government Agreement" (HGA) and management of land expropriation procedures.
  • An oil terminal operator is accused by the Department of Environmental Supervision of sea pollution. A lawyer protects the company's interests and appeals the fine.
  • A chain of gas stations buys fuel from an importer and needs a long-term supply contract that hedges against price fluctuation risks.
  • A service company (e.g., a drilling contractor) signs a contract with an operator and needs clarification on the special tax regime (VAT exemption under the PSA).

The field is regulated by the Law of Georgia on Oil and Gas, which establishes fundamental principles. Transit operations are governed by international treaties (e.g., the European Energy Charter), which have superior legal force. Gas distribution and tariffs are regulated by the Law on Energy and Water Supply and GNERC normative acts. Safety norms are defined by government technical regulations on oil depots and gas stations.

Collaborating with a Legal.ge specialist ensures your activities are protected in a complex geopolitical and regulatory environment. The oil and gas sector requires specific knowledge, as public and private law, international arbitration, and environmental standards intersect here.

Find oil and gas law experts on Legal.ge. Our platform gives you access to lawyers with experience in transnational energy projects. Manage your energy assets with professional legal support.

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