Oil and Gas Law in Georgia is a field of strategic importance, driven by the country's geopolitical location and transit function. Georgia hosts pipelines of international significance (Baku-Tbilisi-Ceyhan, South Caucasus Pipeline), and local resource exploration and extraction are actively underway. This legal field regulates relations between the state and investors during the exploration, extraction, processing, and transportation of oil and gas. The sector is characterized by high investment risks, complex contractual structures (e.g., Production Sharing Agreements - PSAs), and strict environmental regulations. Qualified legal support is essential for both international corporations and local subcontractors to ensure compliance with legislation and the protection of investments.
What Does Oil and Gas Legal Service Cover?
Lawyers working in the oil and gas sector offer full services from project inception to completion:
- Licensing and Contracts: Obtaining a general license for the use of oil and gas resources and concluding a Production Sharing Agreement (PSA) with the state.
- Regulatory Relations: Managing relations with the State Agency of Oil and Gas and the Georgian National Energy and Water Supply Regulatory Commission (GNERC).
- Land Rights: Concluding land easement, lease, or purchase agreements for pipeline routes and well sites.
- Environmental Compliance: Preparing Environmental Impact Assessments (EIA) and obtaining environmental permits.
- Transit and Transportation: Legal analysis of oil and gas transportation contracts and compliance with tariff regulations.
- Dispute Resolution: Investment disputes with the state, as well as commercial disputes between partners and contractors.
Common Scenarios and Needs
Oil and gas companies often face challenges when dealing with the local population, specifically when private land needs to be used for infrastructure development. Disputes regarding the fulfillment of environmental obligations are common, for example, allegations of soil or water contamination during drilling. Investors also need assistance in optimizing tax regimes, as the oil sector has specific tax rules. Another relevant issue is relations with subcontractors — drafting agreements for the supply of services, equipment, and labor, considering international standards (FIDIC, etc.).
Georgian Legislation and Regulations
The main regulatory act of the sector is the "Law of Georgia on Oil and Gas", which establishes the basic principles of resource use and the licensing regime. The "Law of Georgia on Licenses and Permits" and the "Environmental Assessment Code", which defines the ecological expertise of projects, are also important. Tax obligations are regulated by the "Tax Code of Georgia" and the specific terms of PSA contracts, which have the force of law. The State Agency of Oil and Gas is the primary controlling body supervising operational safety and plan execution.
The Process: How a Specialist Works
A lawyer's work begins with an analysis of the investment environment and regulations (Due Diligence). Upon winning a tender, the lawyer prepares and negotiates the terms of the agreement with the state. During the operational phase, the specialist provides daily legal support: renewing permits, regulating labor relations, and monitoring compliance with safety standards. In case of incidents (e.g., spills), the lawyer manages the crisis situation, communicating with the regulator and insurance companies to minimize damages.
Why Legal.ge?
Energy projects require niche knowledge and international experience. Legal.ge gives you access to energy law experts with years of practice in the oil and gas sector. Through our platform, you can find specialists who will help you navigate the complex regulatory framework and protect your business interests. Choose professionals on Legal.ge for successful energy projects.
Updated: ...