Block Energy Seeks Partners for Georgia Gas Project
This article was first published on Rigzone here
Block Energy PLC has launched a farmout process for the development of a group of gas assets in the Eurasian country of Georgia after announcing a third-party review that showed over 1.0 trillion cubic feet (tcf) of recoverable resources in a part of the onshore project.
“Project III is a material opportunity for the appraisal and development of significant gas resources located close to the Southern Caucasus Pipeline connected to international markets and local infrastructure and markets within the greater Tbilisi area”, the London-based oil and gas production company said in a news release.
Earlier Block said an independent engineering report (IER) indicated 1.0 tcf of contingent gas resources in the Patardzueli and Samgori fields with a net present value of $500 million. The results yielded by Oilfield Production Consultants Ltd. (OPC) “confirm the Company's technical and economic case for the appraisal and development of the Patardzueli and Samgori fields”, Block said in an earlier press release.
“In addition, the Company has identified substantial proven gas resources in the same reservoir sequences in the Rustavi and Teleti fields, opening the prospect of material developments beyond Patardzueli-Samgori”, the earlier announcement added. “Block is currently reviewing the internal contingent resource estimates for these fields, employing the same methodologies as used by OPC in the Patardzueli-Samgori IER”.
A technical study is ongoing across five fields and three reservoirs in Project 3, where Block holds the XIB and XIF licenses, according to information on the company’s website.
“The Company's Project III is focused on the appraisal and development of gas resources within the Lower Eocene and Upper Cretaceous reservoirs”, Block said in the IER announcement. “The reservoirs contain extensive gas-bearing natural fracture systems hosted by a stratigraphy over one and a half kilometers [0.3 miles] thick, spanning Block's XIB and XIF licenses, across three fields, Patardzueli-Samgori, Teleti and Rustavi. The Company's farmout campaign is supported by the major studies it has undertaken on all three fields, and historic well tests proving the presence of gas across each field”.
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“The initiation of the farmout process follows two years of technical and commercial work by Block to define the Project's gas resource, which the Ministry of Economy and Sustainability of the Republic of Georgia has declared of strategic significance for meeting the urgent demand for energy required by Georgia's fast-growing economy”, Block said in the latter announcement launching the farmout process.
Georgia imports all its natural gas needs and most of its oil products, mostly from its southern neighbor Azerbaijan, according to a 2023 country report by the International Energy Agency.
Block added the project also offers potential for carbon capture and storage (CCS) in the Patardzueli-Samgori Middle Eocene reservoir, “which an independent report indicates as having a mid-case capacity of 151.5 million tonnes of carbon dioxide”.
“The reservoir's rocks would allow for the application of low-cost, high-impact CCS technologies already in commercial use in Iceland”, Block said.
Block has appointed LAB Energy as advisor in the farmout process. "The appointment of LAB Energy marks the beginning of the anticipated farmout process of Project III, signaling our commitment to deliver a high-value strategy with near-term impact”, chief executive Paul Haywood said in a statement.
To contact the author, email jov.onsat@rigzone.com
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