“A production sharing agreement (PSA) has been concluded between the State Agency for Oil and Gas of Georgia, the Georgian Oil and Gas Corporation, and the Indian company Hindustan Silichem Private Limited, under which the company will undertake large-scale work in developing existing oil fields,” the Ministry of Economy and Sustainable Development reports.

According to the agency, plans include the deepening and drilling of seven active wells and the drilling of two new exploration wells using modern, advanced technologies.

The signing ceremony, which took place at the Ministry of Economy, was attended by Nino Enukidze, First Deputy Minister of Economy and Sustainable Development, Inga Pkhaladze, Deputy Minister and Energy Sector Supervisor, Shri Subbu Ramesh, Indian Ambassador to Georgia, company representatives, and invited guests.

“This agreement represents yet another significant step towards strengthening economic partnership and friendship between Georgia and India. It will promote the development of Georgia’s energy resources, attract new investment, and introduce contemporary high-tech solutions in the oil production sector,” noted Inga Pkhaladze.

In the Deputy Minister’s assessment, this signing lays the foundation for a new phase that will strengthen Georgia’s energy security and create new opportunities for economic growth and regional development.

“It should be noted that the project’s investment package will amount to approximately USD 50 million over the next four years. Immediately upon signing the contract, the company will pay USD 4.15 million into the state budget.

Hindustan Silichem Private Limited is an Indian multi-business holding company engaged in oil extraction and natural gas supply.

The production sharing agreement was signed by Giorgi Tatishvili, Head of the State Agency for Oil and Gas of Georgia, Ekaterine Sisauri, General Director of the Georgian Oil and Gas Corporation, and Khitish Kumar Nayak, Director of Hindustan Silichine Private Limited,” the Ministry of Economy’s information reads.