Oil & Gas Production in Georgia is a strategic and highly regulated sector encompassing complex processes of exploration, extraction, and processing. Georgia's subsoil is state property, and oil and gas extraction is carried out based on a "Production Sharing Agreement" (PSA) signed between the state and the investor. This is a unique legal regime, distinct from ordinary licensing, granting the investor exclusive rights to a specific license block. The sector is characterized by high capital investment and risks, making legal assurance—from environmental permits to tax regimes—critically important for operational success.
Energy law specialists represented on the Legal.ge platform offer full legal services for the oil and gas industry. Services include:
- PSA Management: Liaising with the state (State Agency of Oil and Gas), monitoring compliance with contract terms, and legally agreeing on work programs and budgets.
- Participation in License Block Tenders: Preparing qualification documentation and providing legal accompaniment for international tenders.
- Environmental Compliance: Obtaining environmental decisions necessary for oil operations and ensuring legal compliance of waste management plans.
- Land Use Rights: Concluding easement and lease agreements for access to private land, drilling, and pipeline routing within the license area.
- Subcontractor Relations: Drafting contracts compliant with international standards (AIPN) with drilling, seismic survey, and other service providers.
Legal services for oil and gas production are needed in the following scenarios:
- An international oil company wins a tender for an exploration block and needs to sign a PSA with the state. A lawyer ensures negotiations and protects the company's interests by including a "stabilization clause."
- An operating company starts drilling but faces resistance from the local population regarding land use. A lawyer manages compensation negotiations and, if necessary, exercises the legal right to land use.
- A company wishes to export extracted oil or sell it on the local market. It is necessary to sign sales agreements and precisely define tax obligations (profit tax, royalty).
- An investor plans to exit a project (Farm-out) and sell their share to another company. A lawyer structures the transaction and obtains state consent.
The field is regulated by the Law of Georgia on Oil and Gas, which is "lex specialis" (special law) and prevails over other laws. The regulatory body is the State Agency of Oil and Gas. Environmental issues are regulated by the "National Regulations on Oil and Gas Operations." The tax regime is defined by the Tax Code and the specific PSA, which often provides for special tax incentives during the exploration period.
Collaborating with a Legal.ge specialist guarantees that your multi-million investment is protected. Oil and gas projects last for decades, so a correctly drafted legal framework from the outset is the key to stability. Our lawyers will help you navigate the complex regulatory environment and ensure the smooth conduct of your operations.
Find oil and gas law experts on Legal.ge. Our platform connects you with lawyers experienced in working with international energy corporations and state agencies. Start exploration and production with legal peace of mind.
Updated: ...